Tips to Deal with the Burden of EMIs
Jul 04, 2018 Home Loan
As soon as you start a home loan and the equated monthly instalment (EMI) starts getting deducted from your monthly income, your life seems to get changed. Banks usually link your salary account with your loan account, such that the EMI gets automatically deducted every month on a fixed date. Hence a significant portion of your earning which is almost half of your salary gets reduced even before it reaches you. In order to cope up with this situation or with the current financial situation, you need to make certain changes in your lifestyle.
Therefore there are certain ways that you can adapt to your lifestyle.
- Start making notes of your each and every expense from smallest to biggest. This habit is mandatory. Since you are under financial burden so, you cannot go wrong anywhere in terms of expenses. Every single penny needs to be counted. First, make a list of your regular monthly expense. Then calculate how much you are able to save monthly. Based on the result of your calculation you will have to make some significant changes in your lifestyle.
- Start controlling your expenses. Make cuts at your expense wherever is required and can be done. There might be several areas wherein you can make few adjustments and you have never noticed, so now do that. In certain areas like in case of your utility bills, electricity, water, and gas bills, maintenance charges of your housing society, medical bills you cannot avoid. But you need to look into the areas where you can cut your monthly spending such as shopping, leisure and entertainment purpose activities.
- Look for ways to increase your income when your expenses are getting increased. So you can start looking for a new job with better income to cope up with the increasing expense. Else you can engage yourself in some part-time job or with any freelance projects in your free time. But remember not to spoil your steady income. And it is always better to stick to a financial discipline to keep yourself in a financially comfortable situation. You need to remember that increased earnings should not result in increased spending rather it should be converted into increased savings. You will have to make little changes and sacrifices as a homeowner to lead a better and comfortable lifestyle.
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