How To Deal With The Pressure Of Paying EMIs?
Your life would change quite significantly as soon as the banks, from which you took your home loan, starts deducting the equated monthly installment (EMI). Banks generally link your salary account with your loan account, from which the EMI amount would automatically deduct every month after which you would receive an SMS on your registered mobile number. This means a significant portion of your earning – this would be half your salary – will be reduced towards repayment before it reaches you. You will have to make several changes in your lifestyle to cope with your new financial situation.
Let us look at certain things that you as the payer of EMIs must do.
Start making notes: If noting every little expense was not your thing, it is incumbent upon you to make it your habit now. Since you are hard placed financially which leaves you no room to go wrong, every penny must be counted. To begin with, make a list of your monthly expenses and your earning in this period. After doing all the calculations, check out what kind of monthly savings you get. Significant changes in your lifestyle might have to be made based on the number that you derive from all the calculations.
Make cuts where you can: There are so many areas where making cutting down the expense is not an option for you. For instance, if you are paying a monthly amount of Rs 10,000 towards payment in a life insurance policy, there is absolutely nothing you could do about reducing this expense. The same is true of utility bills that include water, electricity, phone, gas pipeline and internet connection bills, the maintenance charges you will be paying to your housing society, your medical bills, your travel expense, etc. Now explore the areas where you could cut corners. The monthly spending on leisure and entertainment would emerge as the only option at this juncture.
Increase your income: Wise men say that the truly wise are those who look for more earnings when their expenses go higher. They are not intimidated by the growth of expense and start eking out a living. To increase your income, in fact, is the best way to deal with your new situation. Switching to a new job could be an option. You could also go for part-time jobs in your free time. Before you reach a level where you find yourself financially comfortable, it would be only the best to stick with financial discipline. Do be mindful of the fact that increased earnings should also result in increased savings — the rise should not be used only to fund a better lifestyle. This is one of the little sacrifices you would have to make as a homeowner.
Also Read: Home Loan Against Property Guide