Limits🚧
Stop Loan EMIs From Controlling Your Life
📊Weekly Market Snapshot
This week, markets showed mixed signals.
A weak global macroeconomic backdrop kept sentiment cautious.
The Nifty saw a volatile range, with notable rebounds but no clear momentum.
Key sectors like PSU Banks and Realty showed strength, while IT and FMCG lagged.
Earnings from heavyweights like Infosys and Axis Bank added pressure.
Overall, a cautious outlook remains, with global economic developments and corporate earnings influencing the market's next move.
💡Weekly Family Financial Wisdom
Living Life Beyond Loan EMIs: A Practical ‘Limit's based’ Approach
Loan EMIs can wreck your finances if they take up too much of your income.
1. Limit Home Loan EMIs to 40% of Income
A home loan is often the largest debt, but it shouldn’t take more than 40% of your income. If your salary is ₹50,000, aim for a home loan EMI of ₹20,000 or less. This leaves enough for other expenses like groceries, school fees, and savings. Choose a smaller house or a longer tenure to keep EMIs manageable.
A controlled home loan EMI ensures you can live comfortably without feeling stretched.
2. Keep Car Loan EMIs Below 15% of Income
Buying a car can be exciting, but it shouldn’t leave you broke. Spend less than 15% of your income on car loan EMIs. For ₹50,000 income, this means ₹7,500. A smaller or pre-owned car can help keep costs down.
Lower car EMIs leave room for fuel, maintenance, and other family needs.
3. Avoid Personal Loans Exceeding 10% of Income
Personal loans come with high interest and should be kept minimal. Only take one if absolutely necessary and keep EMIs under 10% of your income. Borrow ₹5,000 or less monthly on a ₹50,000 salary.
Small personal loans mean fewer money worries each month.
4. Budget Before Taking Any Loan
Always budget before committing to a loan. List expenses, EMIs, and savings to see if you can handle the payment. Don’t let excitement overrule practicality.
A budget shows if a loan fits your lifestyle without straining your wallet.
Loans should help, not stress. Stick to limits and enjoy a stress-free financial life.
🛠️ Question of the Week
How confident are you about using tax-saving strategies effectively?
Very confident – I’ve got it all figured out
Somewhat confident – I know a few strategies
Not confident – I find it confusing
I rely on a professional to handle it
I don’t actively think about tax savings
(This form is completely anonymous. You will be able to see the responses summary of others’ once you submit.)
⚠️Disclaimer
This newsletter is for educational purposes only and should not be construed as investment advice. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.
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