New Delhi, September 20, 2025 – Billionaire investor Warren Buffett has long been regarded as the “Oracle of Omaha” for his sharp insights into money management and wealth creation. His latest remarks, though not directed at India specifically, strike a chord with the country’s growing “EMI generation”—millions of young Indians burdened by loans for cars, homes, gadgets, and even vacations.
India’s EMI Lifestyle Boom
Over the past decade, India has witnessed a dramatic rise in consumer lending. From no-cost EMI offers on smartphones to easy credit cards and personal loans, financial institutions have aggressively pushed borrowing to attract the country’s aspirational youth. According to RBI data, India’s household debt-to-GDP ratio has been climbing steadily, with urban millennials at the center of this trend.
While this access to credit has fueled consumption and lifestyle upgrades, it has also created a risky dependency on future income streams.
Buffett’s Timeless Warning
Buffett has often cautioned against living on borrowed money. His golden rule: “If you’re smart, you’re going to make a lot of money without borrowing.”
For India’s EMI-driven generation, the relevance is clear:
- Debt is a double-edged sword – While it enables immediate gratification, it can quickly snowball into a trap if income falls short.
- Compounding works both ways – Just as investments grow exponentially, so does unpaid interest.
- Financial freedom requires patience – Buffett has repeatedly stressed that wealth is built by saving, investing wisely, and avoiding unnecessary liabilities.
The Risks for Indian Millennials
India’s middle class often finds itself locked into multiple EMIs—from home loans and car payments to BNPL (Buy Now Pay Later) schemes. Any disruption, such as job loss, economic slowdown, or rising interest rates, can derail household finances.
Experts warn that the culture of equating financial progress with “how many EMIs one can handle” is unsustainable. Buffett’s advice resonates here: Live within your means, save early, and invest wisely instead of borrowing recklessly.
A Shift Towards Responsible Borrowing
Financial planners in India are now encouraging young professionals to follow three simple principles:
- Borrow only for assets, not liabilities – A home loan may be justifiable, but EMIs for luxury gadgets or vacations can strain long-term savings.
- Keep EMIs under 30% of income – Anything beyond this risks financial instability.
- Prioritize investments – SIPs, retirement funds, and emergency savings should come before discretionary borrowing.
Final Takeaway
Warren Buffett’s warning serves as a timely reminder for India’s EMI generation. In a country where aspirations are high and credit is cheap, his philosophy of patience, prudence, and debt-avoidance offers a path to true financial independence.
As Buffett himself once said, “You can’t borrow your way to prosperity.” For Indian millennials, the lesson is clear: let your money work for you, not against you.
