In today’s life, EMIs are a blessing for those whose financial status fails to meet their dreams. Thanks to the Equated Monthly Installments (EMI), you can now purchase things you once couldn’t and up your living standard. You must, however, have a clear knowledge of your financial status and the EMI that needs to be paid. Otherwise, it does not take much time to face a troublesome situation as EMIs take up a chunk of your money.
Therefore, you need to plan your personal loan EMI properly. This is very important as it will ensure you pay off the loan in due time and have financial freedom. To put up a plan, you must first assess what percentage of your salary will go into the EMI. Also, take into account the payment deadlines. You can use https://upwards.in/emi-calculator to measure it, which is a personal loan EMI calculator.
What are the ways to plan your personal loan EMI to help save money?
Some of the ways that you can plan your personal loan EMI for saving money are as follows:
Reduce Expenses: The first step toward saving money is cutting down your expenses. Spending large chunks of money and repaying your loans does not happen at the same time. Therefore, go through your expenses and see where you can cut down on the budget. Live on a minimum budget to get rid of your loans as soon as possible. Make use of a personal loan EMI calculator to know how much EMI you need to pay. Then construct your budget accordingly.
Keep Emergency Savings: One mistake many make is to spend their emergency savings on their EMIs. Do not add to that list. Accidents can happen anytime and you need to be ready for that. The best way to avoid this from happening is to create a separate fund for EMI.
Golden Rule: If you have taken a home loan, make sure to keep your EMI lower than 40% of your income. This is something the experts always recommend. In the case of personal loans, it should be lower than 10% of your income. You can use a personal loan EMI calculator to calculate the exact threshold.
Invest in Mutual Funds: Putting your additional money in mutual funds is also a great way to save. You should always make sure not to invest in a single source though. Invest your money on several mutual funds to avoid risks. If invested correctly, mutual funds can take away a lot of your burden regarding loans.
Balance Transfer Scheme: Balance Transfer Scheme is a process where you transfer your loan to a different bank offering a lower interest rate. This is applicable to car loans. In other cases, if you are having trouble to pay your EMI, you can contact your bank for reconstruction. Ask them to adjust EMIs, loan payment tenure, and interest rates depending upon your capacity to repay.
EMIs can be a blessing or a thing to worry about, depending on how you handle them. Therefore, make sure to follow the aforementioned ways, use a personal loan EMI calculator, and live your dreams without any fear.
