Tips for Saving, Paying and Borrowing for your Future | Home Credit India

Making Loan Payments while you Kid is in School: Some Saving tips for your Family

Money Saving Tips

Many families take instant loans while their kids are still studying in schools.  We keep hearing stories of how families are dealing with debt and still maintaining a balance. So how do they do it? In a debt loaded family, its intimidating to keep the family unaffected.  This wouldn’t be free, but worthwhile. Here’s some saving tips for your family while your kid is still in school:

Identify why you and your family want to save money

Do not skip this step. When luck doesn’t support much, a dive deep into the primary motives help to gather strength. Typically, staying crystal clear in your head helps you become future ready with greater financial independence.

Though, these benefits alone look to be impressive enough. But the specific motives will make greater sense. You can use your savings after loan repayments to utilize for college admissions, retirement plans, etc. Or simply getting rid of monthly EMIs is the biggest motivator ever.

Whatever priorities you have, pen them down clearly. Discuss within the close family group to understand what benefits it shall entail upon and get agreement on all important points.

Believe in the mindset to become successful- Getting a personal loan out of your purview is not that challenging.

There is a huge difference between those who want to take loan and those who don’t want to.  Imagining to be out of a loan is just not enough, you & family will have to take stronger steps for resolution. To become debt free is definitely possible, just stay positive.

What are we really doing to make it happen? Focus on getting rid of the loan payments and focus on earning more. Just think out if it was worthwhile to have a loan in the first place. Retarget your ambitions and make a concrete plan for the way ahead.

We already know that there are ups and downs on the way, and its fine to experience good and bad both.

Financial shake up: Know where you belong

Into the in-depth story, it’s important to know where you are from a financial standpoint. Study your spending instincts and potential income streams to know your exact position. Evaluate your spending in a particular month and essentials to have a recurring value for future. The essentials can include rent, grocery, utility bills, loan EMIs, accommodation etc. against the avoidable things.

So what’s the simplest way to do it? Its best to minus the monthly necessities from your monthly budget to calculate the residual amount. If at all you’re not willing to make major lifestyle changes, determine how much extra can you put forward for debt payments in a month. Just stay as direct in your calculations as possible. It’s obviously better to have a clean financial record at the earliest than ever, to avoid compromises in your present standard of living.

The 3 points of consideration mentioned above can at least ensure a transparent financial conduct to pay school fees of your children on time. Additionally, keep savings intact for future emergencies.

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