Luxury used to be a rare sight for most middle-class Indians. A Gucci belt, a Prada bag, or a pair of Hermes flats was something only seen in magazines or carried back from abroad by a relative. But things have changed. Today, these items are no longer rare. They are increasingly spotted on young Indians, especially from Gen Z and millennial groups.
How are they affording it? The answer lies in easy EMIs (equated monthly instalments) and buy-now-pay-later schemes. Splitting an expensive handbag into small monthly payments makes it feel affordable, but is this trend healthy in the long run?
The biggest reason luxury shopping is growing among young Indians is the easy access to credit. A ₹60,000 handbag can be broken into 12 instalments of ₹5,000 each. For many, this feels like a harmless monthly cost rather than a huge purchase. Psychologically, small numbers look easier to manage, hiding the fact that the overall price remains high.
Finance creators point out that credit culture, when used wisely, can boost the economy by fuelling consumption. Borrowing and spending push industries forward and help people achieve their aspirations faster. However, the personal risks of buying luxury on EMI are often ignored.
A sudden job loss, medical emergency, or financial downturn can quickly turn these small payments into a heavy burden. Without savings as a backup, individuals may fall into debt traps or even bankruptcy. Experts warn that one simple rule should be followed: your total EMIs should not exceed 30% of your monthly income.
Social media is also shaping this trend. Platforms like Instagram and Snapchat expose users daily to glamorous lifestyles. This “see and compare” culture fuels insecurity and the urge to keep up with peers. Many end up buying not because they need the item, but because they want to be seen owning it. The old mindset of saving before buying has been replaced by “I want it now.”
Psychiatrists say this is linked to instant gratification—a desire for quick happiness and social validation. While swiping a card or checking out on a shopping app brings a rush of excitement, the joy rarely lasts. Once the moment passes, so does the thrill, leaving behind a growing EMI bill.
Traditionally, luxury items were symbols of heritage, passed down through generations. They were considered long-term assets. Today, luxury has taken on a different meaning. It is more about experience and visibility.
Supper clubs, premium holidays, and fine-dining events are replacing traditional investments. People are spending not just to own something valuable but to post and share it online. The worth of luxury is now judged not by its durability, but by the likes, comments, and admiration it gathers.
This cultural shift reflects a generational difference. Older generations prioritised roti, kapda, makaan—basic needs and long-term security. Today’s generation, having moved past those essentials, seeks lifestyle upgrades, curated experiences, and social recognition.
But this shift comes with risks. Easy EMIs may give access to short-lived pleasures but weaken financial discipline. Saving used to be part of the luxury journey—it taught patience, planning, and delayed reward. Now, those values are being replaced by a cycle of spend now, worry later.
The danger lies in overindulgence. One EMI may feel manageable, but juggling multiple instalments for phones, vacations, gadgets, and luxury items quickly eats into income. This leaves little room for emergencies or future needs. Missed payments can hurt credit scores, raise borrowing costs, and limit financial freedom later in life.
Psychologically, the effects are equally concerning. Overspending on luxury can lead to guilt, stress, and even low self-esteem when repayment becomes difficult. Linking self-worth to material possessions can also disturb emotional balance over time.
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It would be unfair to say young people should never buy luxury on EMI. Aspirations matter, and enjoying occasional indulgence is not wrong. But the habit of turning every desire into a credit purchase is risky.
Luxury purchases should be thoughtful, not impulsive. If you really want an item, try waiting a week before buying. Often, the urge fades, proving it wasn’t a true need. And if the craving remains, ensure your savings are strong enough to back the purchase.
Experts recommend that luxury spending be kept within safe limits, and savings or investments should never be compromised. A financial cushion is essential for stability, especially in uncertain times.
In the end, luxury should feel like a celebration, not a burden. EMIs can make expensive things look affordable, but they should not dictate one’s lifestyle. For Gen Z and millennials, the real challenge is to balance aspirations with responsibility—to enjoy luxury without letting it control their future.
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