5 Ways to Manage your Spending Effectively to ensure timely Repayments of Personal Loan EMI?

Are you
an impulsive shopper? Do you tend to overspend without considering your
personal loan EMI payments? If yes, then here are five ways by which you can
manage your spending effectively to ensure you don’t turn out to be a personal
loan defaulter.

Steps to
take to ensure you manage timely repayment of your personal loan EMI

Track your spending: Even the smallest purchases can add
up a lot and at the end of the month when you are left with bills to pay you
are likely to fall short of money which will make you miss out on your loan EMI
payment. Remember, tracking the spending is the key to successful budgeting as
it keeps you accountable for every penny you spend. Break up your expenses in
various categories like food, lifestyle, automobile, housing, medical and
others and then make smart spending habits by identifying areas you can cut
back in. Paying attention to small expenses is a must just as you track your
cost-heavy expenses. Grabbing a cup of coffee every morning or ordering lunch
from outside or even taking an OLA or UBER to work can add up more than you can
think of.

Stop relying on credit cards: One of
the primary reasons as to why people tend to overspend is overusing the credit
card even to make small purchases. While it’s convenient to whip out the card
and end up making the purchase, but you are often not aware of how much this
convenience will cost you at the end of every month. By paying only by cash you
are forcing yourself to spend only what you have rather than buying things by
card which gives you unlimited access to cash than can further force you to
indulge in overspending. Stick to a cash-only use system as it will help you
curb your spending habits. On the basis of your monthly budget, keep a sum of
money aside to cover all your expenses and if in between the month or at the
end of it, you find yourself low on cash, then ensure you figure out a way to
cover the money stretch as not doing so can land you in a debt trap in the
future. Keeping cash only spend system ensures you stop relying on credit
cards and also help you stop spending money you don’t have.

Live on a budget: Creating a plan for your monthly
finances helps you take care of your spending effectively. Write down all your
monthly expenses and assign a specific amount you would like to spend towards
it. For instance, if you keep Rs. 5000 aside to spend on food, then ensure you
don’t end up spending more than the dedicated budget towards it. Also, if you
are planning to go for a weekend getaway then ensure you don’t end up spending
daily on your cappuccino run.

Avoid your spending triggers: We all
have those things and places where we don’t have to think twice before
spending. For instance, it could be spending on your favorite brand of watch,
phone or even eating out at a café or a bakery you like. To ensure you don’t
end up overspending, control yourself and avoid contact with such triggers so
you can spend only on what you have already planned.

Reward yourself: So, if you have mastered the art of
spending effectively and are regularly investing in funds and maintaining a
balanced bank account, then its time you reward yourself. Don’t go overboard
with your budget though as it can undo all the progress you have made. Simply
celebrate by buying your favorite pair of shoes, jewelry or go to movies or eat
at the place of your choice.

Check for savings before you buy: If you
are a regular shopper at a certain store, then you are probably aware of the best
deals they have on offer. Check out for weekly or monthly offers at the supermarket
and stock up on the items you regularly use. Keep an eye on your favourite
clothing, shoe and accessories brand to ensure you do not miss out on the
offers offered by them. Sign up to their newsletters, follow them on social
media to get daily updates and be informed about their sale season. Staying
long ahead of time helps you


on personal loan EMI payments can decrease your credit score which will further
prevent you from securing unsecured as well as secured loans in future. Therefore,
it is imperative that you ensure that you do not miss out on even a single EMI
payment as doing so can hinder your financial future in a big way. It is
recommended that you use a personal loan
EMI calculator to calculate the loan EMI beforehand
and plan your monthly budget well in advance. Remember, missing out on the EMI
payments also attracts late payment and bounce charges that have to be borne by
you. So, avoid being a loan defaulter and follow the above tips to secure more
loans in future.

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