THE world has changed in just one generation. Our parents and their parents (and their parents) were made of the same fabric. Their careers spanned one job, maybe two in rare cases. They compromised nearly all their lives in the hope of a brighter future. So little to indulge with, so much to save.

And then there's us. Life is a party so live it up! Indulge, spend and let the changing jobs pay for the increasing EMIs (Equated Monthly Instalments). The have-it-all generation with many friends, travel plans, parties, adventures, cuisines, luxury homes, just so many experiences packed into one lifetime.

If you think that means we're happier, let's not forget that there is a downside. We're caught in an economic boom. But boom times do not last forever. Do you think call centre employees will continue to make millions always? If they do, India will lose its competitive advantage. We don't have social security in our country, so if we are bankrupt or have nothing left, the state will do nothing. Family and friends will generally be of little help. Try travelling by bus and train when you have been used to air-conditioned cars.

So it's a life rich with experience and poor with cash. On the other hand, the 'sensible' generation will always have assets and never fall in the red.

Some lessons to learn:

1. They have little or no loans, never have to borrow for education or wedding of their children.

2. Their quantum of assets however depends on their understanding of finance, money, planning and investment.

3. Their balance sheet is full of positive cash-flows for now and for the future.

4. They have provisions to see them through bad financial times as well.

But what's all the money going to do if you don't live your life? Many opportunities and experiences are missed. Life is routine and everyday is just the same grind. Things happen however but much later in life. The problem is that the significance of excitement dies. What is the point of being able to go for a romantic holiday to Sicily with your fake dentures and armload of medicines?

So it's a life flush with cash but bankrupt on experience.

At the end of the day, this is an intensely personal choice. Needless to say, whichever side you choose the grass will always seem greener on the other side. The answer may lie somewhere in between -- don't spend like a king or live like a pauper. As RK Laxman would agree, sometimes life as a common man where you have a bit of both is most interesting and fulfilling.

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(Photograph used for illustrative purposes only)

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