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Business News/ Money / Personal Finance/  EMIs Have Gone Up? These are the five ways to manage them

EMIs Have Gone Up? These are the five ways to manage them

An increase in EMI has made an unnoticed change in our financial habits. Let's explore the methods to keep our investments aligned by making a few adjustments to our budget.

Five methods to handle an increase in your EMI (HT_PRINT)Premium
Five methods to handle an increase in your EMI (HT_PRINT)

After a lot of trending news and technically innovative startups in the fintech industry, buying the desired product on EMI is just a few clicks away. This has added a few more credit apps on mobile phones and a load of EMIs to your income. After RBI has changed the repo rate and CRR, there is an increase in EMIs and the loan cost.

An increase in your EMIs will eventually disassemble your financial stability and planning. To keep the investment structure aligned, you must make some re-adjustments to your budget. It's not as complex as you might have pictured it to yourself. Let's start exploring how you can re-adjust your budget after an increase in EMI.

Create a secondary source of income 

A basic method to keep up with your regular expenses on EMI can be creating an extra income source to cope with the increase in EMI. This will require an extra effort to make your investments optimised enough to beat inflation and increased interest rate on loans by banks.

Try to build an asset

This sounds more complex than doing it in real. Building assets is not always about the huge capital investment; it just requires a shift in mindset and long-term vision with your money. Building assets brings financial stability and can contribute to your income. 

Avoid your luxury expenses 

Social media has dragged most of the public to the world of flex and large luxury expenses in your budget. Well, it might look like part of your lifestyle, but if you don't require something, try not to make it part of your budget. Your luxury expenses did not only help to cut down the EMI but also provide value to your life.

Invest smartly in the value

Smart investing requires you to be updated and make rational decisions. Put your money where it can assure you the best returns. Invest in stock or mutual funds but make your own decision, and don't forget to invest in your personal growth.

Looks for habits to cut off your debts 

The direct way to re-adjust your budget after an increase in EMI can be to cut off any more debt to your income. Let's stick to purchases either by cash or debit card and keep minimal use of credit cards. The habit of using minimal credit will help build real wealth and focus on investing.

No one is unaffected by inflation, and to keep up with the inflation, the central bank of India has made a few changes which have increased your EMIs. It's your responsibility to keep your investments aligned and financial stability intact, and it is always directed to look at your budget and make a few re-adjustments. So now follow the above-given methods and focus on your personal finance more deliberately.

Anushka Trivedi is a freelance financial content writer. She can be reached at

We explain the key features of no-cost EMIs here.
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We explain the key features of no-cost EMIs here.

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Published: 10 Sep 2022, 04:00 PM IST
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