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04 September 2011

Avoid Hand to Mouth Finances During Repayment Period

Applying for a home loan and purchasing a home has become the easiest way to fulfill your dream of owning a home. There is a tendency to go over board with household expenses especially in early years of marriage, so also there is a tendency of applying for a larger loan as we all feel that once we are committed we will come out of it some how and also own a larger flat. This is easier said than done!
Both spouses may feel that the accumulated income is larger and go in for a bigger home loan for purchasing a flat. With the big flat comes big expenses also which we do not think beforehand. With high maintenance costs every month and also other society expenses on rise we are forced to bear the brunt every month. Not only will the posh society have higher monthly maintenance they will also have other expenses like functions, repairing and other administrative expenses on a higher level.
With Ganeshotsav festivals everywhere many societies still like to splurge int he name of God. Though we see many aware of the economy and ready to go the eco friendly way there are still many who believe that ,more expenses and costly decorations can please God.So also other pujas and festive occasions will also pull your budget strings and if you are having a large loan then festivals apart repaying the loans will always be a stress for you and your family.
There is also a case of major external repairs and coloring of the buildings which again has major costs. If the building needs repairs in form of electrical lines or other leakages then again this amount will also be collected from the society members as contributions be it lump sum or in installments. What if you have a leakage in your homes from any other flat . Then it is a problem since my personal experience has shown that no one will be bothered about your problem. Even the society members will not interfere in your personal problem . And this will only be solved when you repair this at your own cost , which may also be a major one, especially if it is a bathroom leakage then you will have to make the whole bathroom of your above flat at your expenses, thought the rule may state that both flats give 50-50 but the other party may not be willing to spend, and you have to lead in.
By mentioning these unexpected incidences I wish to draw your attention to keep aside some money regularly. Home loan is not the only factor in your life and your life is much larger than a loan. Placing equal importance on other aspects also of your life. Plan your finances well and avoid hand to mouth fiances always. If you are spending all your salary every month then  this is not a good financial planners sign. Prioritize your life expenses and plan accordingly. Keep some amount of money to fall back during the repayment period of your loan always.

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