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


Defaulting 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.
5 Ways to Manage your Spending Effectively to ensure timely Repayments of Personal Loan EMI? 5 Ways to Manage your Spending Effectively to ensure timely Repayments of Personal Loan EMI? Reviewed by Pravesh Kumar Maurya on February 04, 2020 Rating: 5

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