Dealing with the Pressure of Paying the Home Loan EMIs
Jul 05, 2019 Home Loan
Buying a dream house is not a farfetched dream. With banks and financial institutes ready to give home loan almost up to 80 percent of the total cost of the property, home buyers get into the real estate pretty early in their life. The happiness of owning a house is often clouded by the pressure of paying the monthly EMIs.
Banks often link your salary account to the loan account and the monthly EMI is directly deducted from it every month. There is a good chance you will see 40 to 50 percent of your salary going to paying the loan when your salary arrives. This will keep going on for significantly few more years until all your EMI is paid.
However, one can always learn how to deal with the pressure of paying monthly EMI effectively. We discuss everything here:
1. Make notes:
Keeping a track on every penny you spend might not be your style or habit. But when you have a financial burden that will go on for the next 15 to 20 years, it is essential to keep track of your expenses and find out where you can reduce them. You start by making notes doing all the calculations of your costs. It is a good idea to keep a certain amount for your savings and some for dedicated groceries and household needs.
2. Know where to cut your expenses:
There is a certain expenditure that you cannot cute. Like for example, your insurance or medical expenditure (if there is) cannot be reduced or deducted. However, your lifestyle and careless spending can be put in control to make sure you are saving enough money without denting your financial and healthy lifestyle. Expenses for essential utilities like the electric bill, water bill, and gas bill cannot be taken off from your list, but their consumption can surely be controlled. One can always check their leisure and entertainment expenses and try to reduce them.
3. Increase in income:
Growing in your job and job role is a part of your career graph. Your salary increases with your job too. One can also look for some freelancing or part-time job to get that extra income that will help in paying the monthly EMI.
Paying monthly EMI and saving up money requires people to have a certain kind of financial discipline. Unless you find yourself in a position where you can take your finances a bit easier it is advised to stick to your fiscal discipline to make sure your home loan EMIs do not become the reason for your worries.
Banks often link your salary account to the loan account and the monthly EMI is directly deducted from it every month. There is a good chance you will see 40 to 50 percent of your salary going to paying the loan when your salary arrives. This will keep going on for significantly few more years until all your EMI is paid.
However, one can always learn how to deal with the pressure of paying monthly EMI effectively. We discuss everything here:
1. Make notes:
Keeping a track on every penny you spend might not be your style or habit. But when you have a financial burden that will go on for the next 15 to 20 years, it is essential to keep track of your expenses and find out where you can reduce them. You start by making notes doing all the calculations of your costs. It is a good idea to keep a certain amount for your savings and some for dedicated groceries and household needs.
2. Know where to cut your expenses:
There is a certain expenditure that you cannot cute. Like for example, your insurance or medical expenditure (if there is) cannot be reduced or deducted. However, your lifestyle and careless spending can be put in control to make sure you are saving enough money without denting your financial and healthy lifestyle. Expenses for essential utilities like the electric bill, water bill, and gas bill cannot be taken off from your list, but their consumption can surely be controlled. One can always check their leisure and entertainment expenses and try to reduce them.
3. Increase in income:
Growing in your job and job role is a part of your career graph. Your salary increases with your job too. One can also look for some freelancing or part-time job to get that extra income that will help in paying the monthly EMI.
Paying monthly EMI and saving up money requires people to have a certain kind of financial discipline. Unless you find yourself in a position where you can take your finances a bit easier it is advised to stick to your fiscal discipline to make sure your home loan EMIs do not become the reason for your worries.
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