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03 June 2011

Collecting Money for EMI

The first step towards purchasing a home would be to get your loan approved. This is easy for employed individuals and some what elaborate for self employed. No sooner is your loan approval completed, begins the time of repayment. Few EMIs are taken collectively in advance and after a month or two the regular repayment schedule begins. The most important question faced by many is how to collect money for EMI?
Very first comes the house warming party. Can you do away with it? if you can well and good. If you have kept aside money for this then also well, if not then consider having a small function compared to a bigger one.  One can have a small religious function with close friends and relatives , and if this is not your priority then it would be advisable to do away with these social (eating your finances) expenses.

Gifts and vouchers from friends and relatives must be used effectively. Usually after marriage there are tons of gifts collected and many are in numbers, they end up in the attic! It would be advisable if possible to suggest your family and relatives to give in cash as this will help you to repay your loan and collect money for future EMIs.
If you live on rent take care to keep aside this money before hand to avoid any problems later on. Take loan according to your repayment capacity. Also consider the deposit money you have paid to get the home for rent, which you will get as you shift in your own home. While shifting your furniture try to minimize the costs of private movers, and you can take help of friends or relatives for shifting to your new home.
The new home interiors and coloring can also be done in simple minimal cost. Remember you do not know about leakages, walls cracks, taps malfunction and blockages in drains. After spending a lot for interior decoration if there are any problems you will have to repair these, a major expense.  Also when you begin living you will learn about your specific requirements and choices. Furniture and other aspects of decoration can be well understood after you begin living in your home. You can begin with wardrobe or cupboard and bed, so also for children's bedroom go for simple furniture and later make other things according to your need see how much you will save!
Save as much as possible- by this I mean all the members make a strong commitment towards achieving this goal. Repayment becomes easier if everyone does their bit. Right from saving electricity to cutting down phone bills everyone can do their bit. Remember these bits and coins will go a long way!  every member will get into the habit of saving and this will have a long term effect for the finances of the family.
Cut down on extra expenses- the extra sari or the extra dinner out can wait. These expenses though look trivial go on adding and amount to a large figure. Can you go out for a simple dinner out instead of a full course dinner in a big restaurant? Think what you need and what you can do without.
Club your investments to get a correct picture of your finances. By this you will understand the total amount of money coming in the house and writing down the total expenses will guide you where to cut down and which expenses are compulsory.

If possible keep aside one spouses salary. Try to reduce expenses and compulsorily come upon a mutual agreement to keep aside one salary. This will give you the amount for EMI and you will not have to think of collecting this amount every month.
  Keep some amount as savings every month. In cases of emergency this amount will come handy and your EMI, loan repayment will not suffer. When you are going in for a home loan consider this very important aspect and take a loan within your means.
Start saving and collecting money before taking a home loan. So go ahead and pay your EMIs happily.

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