You have been working abroad and earn a tidy sum. You may be richer than many of your classmates who live in India. You might be able to afford quite a few things which you could not some time back. But that does not mean you spend money like it is going out of style.
Quick Answer
The most common ways NRIs quietly overspend are impulsive online shopping, chasing luxury brands, buying an overpriced or over-decorated house too early, indulging in convenience foods on every India visit, signing up for memberships they rarely use, and paying fees on cards and subscriptions they’ve forgotten about. None of these are wrong occasionally. The problem is when they become habits rather than conscious choices.
Read More: Smallcase Stock Investing For NRIs, Review
Here are a few ways in which one tends to misspend money. These wasteful means of expenditure can surely be avoided.
Excessive Online Shopping
Online shopping is so easy and so addictive that some people treat it almost like therapy. If you’re an NRI from the US or UK, you probably visit India in July-August, coinciding with school holidays back home, which is also monsoon season in much of India. Stuck indoors on a rainy day, it’s easy to end up browsing Flipkart or Amazon, or the online presence of most brick-and-mortar shops, all offering clever deals. It’s convenient and tempting, but unnecessary shopping quietly depletes your hard-earned money.
As an NRI, you may be tempted to buy traditional wear and accessories you don’t see much of where you live. But ask yourself how much you’ll actually use it. Traditional clothes for children are an especially common trap, since kids outgrow clothes quickly and may only wear an expensive outfit once or twice.
What can you do to prevent unnecessary online shopping?
Do not buy on impulse. Plan your purchases so you buy what you genuinely need, and things that are long-lasting and good quality.
Acquisition of Luxury Brands
As an NRI working abroad, you likely have more disposable income than you’ve ever had, and if you earn in a strong currency like USD or Euro, that cash goes further when you’re in India. Most high-end brands are now available locally, and malls run seemingly attractive offers that make spending feel tempting. But ask yourself honestly whether you need the latest item, or whether you’re just enjoying the feeling of having “taken advantage” of a deal. A few luxury possessions are perfectly fine; the trap is going overboard. Ikea’s founder, Ingvar Kamprad, was a billionaire who reportedly shopped for his own clothes at flea markets.
Plan of Action
Save your money from unnecessary expenses. Build the habit of buying things that provide genuine value for what you spend, rather than everything that comes with an attractive offer in the mall.
Buying an Overpriced House
Most of us want a big house in a good location, decorated in the latest style, furnished with the best pieces we can find. Owning a house is a genuinely worthwhile goal for many NRIs, but it’s also an expensive one, and the purchase needs to be planned and executed after real research.
Does the house need to be fully designed and decorated right now? If you’re returning in five years, today’s design choices may no longer feel current by the time you actually move in, turning today’s spending into tomorrow’s regret.
What should you consider before buying a house?
A few points worth weighing carefully:
Location: Will you or your family actually be living there soon? Will it still be convenient five years from now? If you’re over 60, proximity to a market and medical care may matter more than it does today.
Life stage: Consider the circumstances of your eventual return, your age at that point, and your likely lifestyle. If your children will be studying abroad by then, you may not need a four-bedroom house.
Price and timing: Compare the price against similar properties nearby and try to gauge likely appreciation. Timing a purchase perfectly is rarely possible, but reading market reports and talking to a few brokers or industry contacts gives you a much better sense of whether you’re buying at a reasonable price and time.
Check: Wealth Planning Checklist for NRIs
Overspending on Convenience Foods
Most NRIs visit India wanting to experience everything they miss, especially the food. It’s easy to end up spending heavily on packaged food, takeout, and dine-ins, which can quietly wreck a travel budget even for those who can technically afford it. Indulging occasionally is perfectly reasonable. Being mindful about how often it happens is what keeps it from spiralling.
How do you manage this better?
It often helps your health and your wallet to avoid ordering food constantly. One practical option: hire a cook temporarily during your visit and have them prepare your favourite home-style meals instead.
Signing Up for Unnecessary Memberships
Fear of missing out drives a lot of unnecessary membership purchases. A food delivery membership that made sense for daily use back home rarely makes sense for an NRI visiting once a year. The same goes for short-term fitness memberships, gym class packages, or similar signups, since a short visit often doesn’t leave enough time to actually use what you’ve paid for, once appointments, errands, and family visits fill up the calendar.
How to make the most of your visit to India instead
- Continue your fitness routine with a morning run or walk at a nearby park.
- Use your apartment complex’s gym, pool, or health club amenities if they’re already included.
- Tag along with friends or family who already hold memberships that offer guest access or good deals.
Read: Mr. NRI, How Much Retirement Corpus Is Enough
Paying Unnecessary Fees
Nobody enjoys late fees, re-subscription charges, or reconnection costs, yet many NRIs quietly accumulate them. Check the credit cards you still hold in India for annual fees you’re paying without benefit. You generally don’t need to hold onto more than one or two international cards while living abroad. The same applies to utility bills and other recurring payments in India, where you may be paying for services you no longer use, or missing payments that trigger penalties simply because you’re not physically there to notice.
How can you avoid these unwarranted expenses?
Cancel credit cards you no longer use. List out your expenses and separate the important from the unimportant. Set up auto-debit for anything genuinely important so you never miss a payment by accident, and cancel any subscription or connection you no longer need.
We’re always thinking about ways to earn more. At the same time, it’s worth striving to spend less. The real formula for financial success is:
- Maximise your earnings.
- Minimise your expenditure.
- Let go of short-term indulgences.
- Save and invest for long-term financial success.
Avoiding the habits above helps build a genuinely secure financial future.
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If you have questions or observations about ways NRIs should not spend money, add them in the comment section.
