Financial Planning Post a Loan Repayment

The joy of owning your own house is indescribable; there is a sense of immense satisfaction that rushes over you. However, the journey towards purchasing your own house isn’t an easy one and quite often requires enormous sacrifices. You may even have to take a home loan in order to be able sign on the dotted line.

Rachna and Mayank Joshi, were one of those numerous couples who managed to finally purchase an apartment which they could proudly call their own home, aided by a home loan.

The Joshi’s were very practical; repayment of the home loan was their top-most priority. After some years of careful financial planning and sensible expenditure, they successfully paid back their loan and were debt-free.

Years of financial discipline had trained them to securely cap their monthly expenses to pay the EMI.

Now, in absence of an EMI expense, they had the money to indulge in all their desires.

This is where this couple took a different stand; instead of large spending money on material items, they opted for creating a financially secure future for their family.

Mayank invested the money that they had saved together in a number of endowment policies and ULIPs. Yes, this involved skipping out on a family vacation and not being able to buy the latest gadget, but a financially secure future outweighed all these desires. After all, a family vacation can be enjoyed later but wise investments have to be bought today to enjoy a better tomorrow.

Trying to control their urges from splurging the monthly income was difficult. However, after taking the home loan, they had got used to the habit of spending wisely and this habit continued even after they had successfully repaid the bank. Wise spending coupled with sensible insurance and investments led to the Joshi’s achieving the goal of a financially secure future.

Mayank sleeps peacefully at night, knowing that if something were to happen to him, his family would be taken care of. He will be able to afford to send his child abroad for higher education and he has enough money put away in his retirement fund.

The Joshi’s simply avoided splurging after paying back the home loan and that made all the difference.