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YOLO, FOMO, and Approach to Responsible BNPL Usage

YOLO, FOMO, and the Gen Z Financial Rollercoaster

Hey Gen Z, ever feel caught in the “You Only Live Once” (YOLO) and “Fear Of Missing Out” (FOMO) financial web? Over 65% of us skip monthly budgets! YOLO and FOMO mindsets are turning our wallets wild. Let’s decode this money maze together!

Credit Card Surge and Pitfalls

Financial discipline among Indian youth is declining, evident in a 30% growth in credit card dues, outpacing overall bank loan growth. Credit card spending in FY 2022-23 soared by 47% to ₹1.4 lakh crore. Despite the allure of rewards, excessive credit card use impacts credit scores, leading to higher interest rates and potential job denials.

Rise of Buy Now, Pay Later (BNPL)

BNPL services witnessed a 21% growth in H1 2022 in India, outpacing global trends. The popularity of online shopping and the encouragement of overspending contribute to this surge. While BNPL offers convenience, it can lead to impulsive spending and debt traps if not managed responsibly.

BNPL Wisdom for Gen Z

Hey Gen Z, tackling Buy Now, Pay Later (BNPL)? Here’s the scoop:

  • Set a Monthly Budget: Establish a strict budget before opting for BNPL.
  • Avoid Impulse Purchases: Say no to unnecessary buys; resist the urge.
  • Understand Hidden Terms: Be aware of potential hidden charges or high-interest rates.

FOMO as a Financial Friend

Turn FOMO into a financial friend, Gen Z! Fear of missing out on a secure future? Here’s the game plan:

  • SIP Over Lumpsum: Go for regular, disciplined Systematic Investment Plans (SIPs).
  • Avoid Peer Pressure Spending: Keep up with yourself, not others.
  • Trade Wisely: Understand the market, research, and dodge impulsive trading. Secure that future, one smart move at a time!

Final Words

Gen Z, it’s not just about YOLO and FOMO; it’s about nailing the balance between living for today and locking in a solid financial future. Buckle up for a ride where discipline, smarts, and savvy decisions are your compass in the finance maze!

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