Live the life King Size not with Loans - 2

In the last article we had seen about the loans and credit cards, in thisarticle we will see about how these EMI's are coughing up pur lives if not paid properly.

Life had become an EMI

Let us see the number of loans available in our lifetime to live an easy life,

• Education loan
• Personal Loan
• Credit card
• Home Loan
• Reverse Mortgage loan

For many EMI starts in their life with education loan, once the education is completed it then turns to getting a job and closing out this education loan. Life becomes a full circle once you get money in your hand and the immediate joy would be to buy things which we have longed as a teenager and start splashing money.

Now once the education loan is closed, thoughts move towards taking a personal loan as the credit card EMI’s has become a huge hill from being a mole as monthly expenditure had increased gradually. Now paying this personal loan due will be a regular expenditure and once this is about to get closed, marriage comes across and obviously the personal loan needs to be taken to have an above average marriage among peers.

Now being a family once we start a new life, new home needs new things and those EMI’s get added to monthly budget. Life gets moving all these days, slowly with kids and with family and peer pressure we are forced to buy a home. Absolutely this will also be above our buying capacity as we have home loans to cater. This home loan will take around 20 years to close and we never think about other luxuries until we close this. Now at the time of closing we would have reached near our retirement life and have kids who had grown reaching the college or finished their college.

Again no worries, we have reverse mortgage loan which is easy to obtain to have the retirement life as easy as you have wished. Based on the net worth of the home you can get a lumpsum or spread out across the years as you wish, once your lifetime is over the lender will take over your home. The only condition is that you need to maintain your home in good condition and any changes should be informed to the lender in advance.

Now looking back in whichever stage you are now, it is easy to completely live the life you had thought off in loans or financially stable and luxurious life.

Risk of living this life with loans:

It is easy to live this kind of life as you have loans available in each stage of life, but the only risk is that if there is any medical emergency for yourself or your closed ones at any stage of life. Further when you are living on loans you can thrive to go to next stage of luxury by crawling, but when you are living a EMI free life, you can get things which was an aspiration once and have vacations which you have never thought off in your life.

   

Easy way to get rid of Loans

The only way to get a financial discipline in your life is to, start a recurring deposit so that you are saving some amount every month, once you have accumulated an emergency fund you can start planning to invest via equity mutual funds,

Monthly investment of 1000 over a period of 5 years can give you around one lakh which is difficult with any other type of investment. By getting a loan, you would have ended up paying the same amount to any of the lender as interest.