8 Ways Indians Often Waste Their Money : Unveiling Excessive Spending


A reaserch says India has large number of middle class people yet it is a huge market of luxury spendings! In a world of abundance, managing finances wisely is essential to secure a stable future. Unfortunately, a significant number of Indians often fall prey to impulsive and extravagant spending habits. This article sheds light on seven prevalent areas where many Indians tend to waste their hard-earned money and lacks wisdom in avoiding these financial traps.

1. Lavish Weddings and Extravagant Celebrations: 

Weddings in India are often grand affairs, but people lack to understand a simple concept that this pursuit of luxuriousness can lead to financial strain. Year ago a girl rejected the wedding for a silly reason that her wedding dress was cheap! Spending lakhs on pre-wedding and post-wedding photo shoots on luxurious locations has become a status symbol. Destination weddings and extravagantly themed wedding and have become part of ceremonies now a days! And all this show-off to please those anyhow ridicling or taunting thousands of people, whom they never met for years yet are invited for the wedding! During COVID -19 the Governement made a rule that only 25-50 people can attend a wedding, and honestly speaking, only these number of people will appriciate and bless the newly weds and rest all attend the wedding just to point out the mistakes the hosts does during the ceremony! Hence, overspending on engagements, wedding ceremonies, receptions, and associated festivities can waste families hard earned money and burden the families with unnecessary debt. By cutting out all these unnessary expenses and adopting a more modest and sensible approach to weddings, individuals can ensure they start their new lives on solid financial ground by saving those lakhs of amount for future savings!


2. Brand-Centric Lifestyle Choices: 

A local foot wears or clothes are comfortable and are available at cheaper rates. On the contrary, branded clothes and footwears are also comfortable but their prices are 10 or even 100 times higher than local fashion. Same way, local cosmetics and branded cosmetics are made with 80% similar raw materials but their costs vary from thousands and sometimes lakhs with each other! IPhone are bought only for the show-offs, a normal Android phone gives 100s of features that are not even available in IPhones!! Holding an IPhone in front of a mirror and taking a selfi is never ending trend! Those first copy or second copy wrist watches look just like those high cost branded watches, and guess what?! They also show correct time!! Sit down calmly and think twice, is it really worth it falling for the trap of such branded stuffs just to please others!? Does these products give you happiness b(u)y making a big hole into your pocket?! The attraction of brands is hard to resist, leading many Indians to overspend on branded products. But remember, the obsession with brands can quickly deplete savings. Cultivating a more mindful approach to spending and recognizing the value of quality over brand can help individuals curb unnecessary expenses.

3. Impulsive Online Shopping: 

The convenience of online shopping has revolutionized the way Indians make purchases. Hundreds of online shopping Apps are attracting millions of people every second with the new launches and ads by celebrities. People download these apps with cheap internet and scroll up for unnecessary products which they don’t even need! Thus, it has also fuelled impulsive buying behaviours. Excessive online shopping for items that aren't essential can strain budgets and clutter homes. So next time when you scroll on these apps and urge to buy those products. Take pause, not for a day, not for hours, just take a pause for few minutes and come out of that app and think do you need this? Bang, your mind will change! Developing a shopping plan, setting limits, and focusing on genuine needs can prevent overspending.

4. Luxurious Cars and Material Displays: 

Televisions and YouTube are filled with ads of numerous brands of cars! Every minute the car companies are creating unnessary needs in the minds of people with their car features, styles and luxuries! And a common middle class people who don’t even need that luxury fall into that trap in the desire to showcase riches! This often drives Indians to invest heavily in luxury cars and extravagant possessions. Most of the Indian families are nuclear now with just 2 to 3 people! Falling into the trap of show-off, people are lacking to understand the fact that, the cost of fuel, insurance, EMI (if car is bought on loan) and maintenance to that car will be more than the cost of car most importantly it is a depreciating asset and its depreciation is never going to increase the value of that car! So think wisely, is it worth buying a car for just 2 to 3 people? While indulging in comfort is reasonable, overspending on status symbols can lead to financial instability. Opting for more practical choices and distinguishing between needs and wants can help strike a balance between comfort and financial forethought.

5. Overprioritizing High-Priced Education and Coaching: 

Education is a cornerstone of success, but over prioritizing expensive educational institutions and coaching centers can strain budgets. Few decades ago government schools and colleges were clean neat and had good quality education! Teachers were dedicated to educate their students with all the knowledge they had! But privatizing everything slowly degraded the quality of education and converted this into a big business! Apart from high spending school fees, people also spend on coaching classes! Many Indians overspend on premium educational options, neglecting the quality of education offered by more affordable alternatives. Balancing educational aspirations with financial feasibility is key. Remember one thing, we never know where the world education will lead after a decade with these changing technology, business modules, work structures and various career options!

6. Excessive Reliance on Loans and EMIs: 

Easy access to loans and equated monthly installments (EMIs) often lures Indians into a debt trap. Home loans, Car loans, Education loans and personal loans have become part of life for all midlle class people! Acquiring loans for non-essential expenses or using credit to maintain a lifestyle beyond one's means can lead to financial instability. Prudent financial planning, understanding the implications of loans, and opting for sustainable EMIs are crucial. If you want to buy a home on loan, then plan that your EMI should not be more than 25% of your monthly income and all the other luxuries you can avoid buying on loan just for the show off.

7. Neglecting Long-Term Financial Planning: 

Earlier there were pensions and retirement lumpsum amount benefits were given to the government employees. But now, hardly anyone get that desired government job! Hence planning your retirement or future expenses is very important in this era of high inflation and changing trends of jobs. But one of the most common mistakes middle class Indians make is neglecting long-term financial planning. The lack of investments for retirement or emergencies can leave individuals financially vulnerable. Recognizing the importance of saving, investing wisely, and seeking expert financial advice can pave the way for a secure financial future.

8. Unplanned Travel and Weekend Getaways: 

Vaccations and staycatiosn have become another trending luxuries now a days! In the desire of showcasing their lifestyle on social media people often travel these days. While travel offers enrichment and relaxation. But these spontaneous trips and extravagant weekend getaways can strain budgets. Proper planning, setting travel goals, and adhering to a well-thought-out budget can help Indians explore the world without sacrificing their financial stability.


In a world where financial choices abound, adopting a responsible approach to spending is paramount. By examining the eight areas where many Indians tend to overspend, individuals can take proactive steps to ensure financial stability. Embracing a balanced lifestyle, distinguishing between genuine needs and societal pressures, and prioritizing long-term financial security can set the stage for a brighter and more prosperous future. Remember, small changes today can lead to significant financial rewards tomorrow.

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