Warren Buffett’s warning for India’s EMI generation
It is that season again. The latest iPhones are out, new AirPods glow in shop windows, and offers with “no cost EMIs” and trade-in bonuses are plastered everywhere. Retailers are already pushing two-year EMI plans for flagship phones. For example, some stores are offering the iPhone 17 on 24-month “no cost EMI” plans plus bank cashbacks.
Here is what the numbers are saying. Nearly 70% of people buying iPhones in India choose to pay via EMI.Also, a recent study found that 93% of salaried Indians earning less than ₹50,000 a month are relying on credit cards to support their everyday expenses with credit and EMIs are no longer optional extras, they are lifelines.
It seems extremely easy (possibly logical) to split payments over months when the festival lights are up and the thrill of a new gadget is in the air. But when several EMIs stack up, when credit cards carry high interest, and when you live on borrowed money just to keep up appearances, the cost is not just financial. It is stress, vulnerability, a future you might not see clearly.
If Warren Buffett were here now, watching the lines at Apple stores and seeing people choosing “easy EMIs” like fast fashion, he might say something simple: Don’t confuse what you want right now with what helps you tomorrow. Live within your means, guard your freedom from interest payments, and let saving, not borrowing, guide your choices.
Why easy credit feels harmless but isn’t
The psychology of EMIs is clever. Instead of asking you to pay ₹80,000 for a phone today, it asks for just ₹6,000 a month. Spread out like that, it feels painless. And during Diwali or a big launch week, when everyone around you is upgrading, it almost feels irresponsible not to buy.
But here is what the numbers show. Credit card interest rates in India often cross 36–40% annually, which means a balance of ₹50,000 can quietly double in just two years if left unpaid. Buy Now Pay Later schemes, which many people assume are risk-free, have already seen one in four users struggling to repay. And EMIs, which were once for houses and cars, are now the default for phones, clothes, even vacations.
It is not that one EMI breaks you. The danger is how easily it multiplies. Three EMIs here, two credit card balances there, and before you know it, a third of your monthly income is spoken for before the salary even arrives. Add an emergency or job loss, and the entire house of cards can collapse.
This is where Warren Buffett’s advice feels timeless. He often said: “You cannot get rich by spending more than you earn.” Debt, in his view, is not just a financial liability, it is a mental weight that grows heavier with time. And in India’s current credit culture, that weight is spreading fast.
The Buffett playbook: How he would tell us to handle credit
If Warren Buffett were sitting across the table from a group of young Indians today, he would probably not use fancy jargon. He would keep it simple, maybe even sound like a patient elder giving life advice.
First, save before you spend
He would say: do not wait until the end of the month to see what is left for savings. Decide the amount you want to keep aside first, then live on what remains. Even if it is only a small amount, the habit matters more than the number.
Second, use credit only for convenience
Buffett would remind us that a credit card is not extra money. It is just a tool to make payments easier. If you are not clearing your full bill when it comes, then you are already in dangerous territory. In India, card interest rates can reach almost 40% a year. That is not a loan; that is a trap.
Third, let compounding work for you, not against you
Buffett loves to talk about compounding because it quietly builds wealth over time. If you invest a few thousand rupees every month, the amount grows faster than you expect. But the same principle works in reverse with debt. Those EMIs and unpaid card bills also compound, but against you. One grows your freedom, the other eats it away.
Fourth, always have a cushion
He would probably tell us to keep a little emergency money aside. Not because he is against enjoyment, but because life is unpredictable. When you have some savings to fall back on, you are not forced to swipe your card or take another EMI at the worst possible moment.
Buffett’s rules are not exciting. They will not get you likes on Instagram. But they give you something more valuable: peace of mind. He has never chased quick thrills, and yet he became one of the richest people in the world. That is his real point is that freedom comes from avoiding debt, not from collecting the latest toys on credit.
A personal plea this festive season
As the festive lights go up and new gadgets fill store shelves, it is tempting to join the rush. I see friends proudly holding phones bought on EMIs, cards swiped with ease, and “no-cost” deals that look harmless on the surface. But behind the sparkle, I also see stress. I see people with salaries already tied up in installments, with no room left to breathe.
This is why Buffett’s voice matters right now. He has warned for decades that debt is a quiet thief. It does not break you in one day, it chips away slowly in interest payments, in sleepless nights, in lost opportunities. What looks like a small EMI today can become the reason you cannot save, cannot invest, cannot build the life you actually want.
So here is my plea: enjoy the season, celebrate with family, but do not build your happiness on borrowed money. The phone will get old, the gadget will be replaced, but the debt can linger far longer. Buffett would say the true festival is financial freedom as the joy of living without the weight of EMIs and credit card bills on your back. That freedom is worth far more than any launch-day gadget.
Author Note
Note: This article relies on data from fund reports, index history, and public disclosures. We have used our own assumptions for analysis and illustrations.
The purpose of this article is to share insights, data points, and thought-provoking perspectives on investing. It is not investment advice. If you wish to act on any investment idea, you are strongly advised to consult a qualified advisor. This article is strictly for educational purposes. The views expressed are personal and do not reflect those of my current or past employers.
Parth Parikh has over a decade of experience in finance and research. He currently heads growth and content strategy at Finsire, where he works on investor education initiatives and products like Loan Against Mutual Funds (LAMF) and financial data solutions for banks and fintechs.