Purchasing property by opting for a home loan is a huge financial commitment. Thus, during the repayment period, it is crucial that you plan your expenses properly. By doing so, you can ensure timely repayment along with taking care of your household expenses.
So, if you have recently bought apartments in Bangalore, keep reading this blog. You will find the best ways to balance both liabilities without breaking a sweat.
5 Best Tips to Manage Your Home Loan Along With Your Family Budget
Some of the best ways to manage loan repayment along with household expenses are as follows:
Maintain a Strict Weekly/Monthly Budget
Setting a strict weekly/monthly budget is one of the best ways to manage timely EMI payments, along with home expenses. To do so, create a list of major expenses like your monthly repayment amount, food, electricity, travel, etc. Then, allocate a specific amount of money for each and maintain it precisely.
Following this method will also help you cut out unnecessary expenses and keep money aside in case sometimes your monthly budget demands a little extra.
Automate Your EMI Payments
This is probably the most effective measure when it comes to timely loan repayment. Also, missing your EMI even by a day can result in penalties. So, by simply automating your monthly payments to the lender, you can avoid this hassle.
Moreover, consider keeping extra funds in your bank account. This way, even if some financial emergency occurs, your EMI payment will not be delayed, reducing one less trouble for you to deal with.
Know the Foreclosure and Prepayment Rules
During the loan tenure, you may often get money in your hands in the form of bonuses, matured investments, etc. In such times, consider reducing the outstanding loan amount by either foreclosing it or making part prepayments.
Doing so will reduce the EMI amount and also the amount of interest you pay throughout the loan tenure.
Monitor Your Expenses Regularly
Regularly monitoring your expenses is another excellent method of managing your overall budget. You can do so by keeping track of them in a diary or on your smartphone. This will help you prioritise your spending habits and allocate money to only the things which you actually need.
Make an Emergency Fund
Now, financial or medical emergencies do not come without forewarning. Thus, it’s better to be prepared than face the consequences. In this regard, consider setting aside a fixed amount of money in a different bank account. It will serve as an emergency fund to cater to both your home loan EMIs and household expenses in times of need.
Buying apartments in Bangalore by availing a home loan requires a lot of financial discipline. Thus, you must buy Bangalore flats in areas which have significant prospects of long-term value appreciation.
In this regard, Mahendra Aarya can be a smart investment. We have 2 and 3 BHK flats in Electronic City Bangalore, featuring 82% open space, 50+ world-class luxurious amenities and a lot more. Our properties in Electronic City showcase unique designs like bay windows, double-height entry lobbies, etc. and are built following the basic principles of Vastu.