Save Money & Clear EMIs: 3 Simple Steps

If you’re finding it tough to save money because your Equated Monthly Instalments (EMIs) take up a big chunk of your income, you’re not alone. Finance coach Aruna Keerthy has a clear three-step method to help you save while actively working to clear your debts.

Creating Your Financial ‘Breathing Room’

The first crucial step is to carve out some immediate financial flexibility in your budget. You can achieve this by pinpointing one or two negotiable expenses you can either reduce or temporarily pause.

This action aims to free up some cash flow right away, giving you a little space to start managing your finances more effectively.

Halting New Debt

Next, while you are diligently working to reduce your existing debt load, Aruna Keerthy strongly advises against taking on any new EMIs. Adding new payments can quickly undo your progress and create further strain.

This disciplined approach ensures your focus remains squarely on clearing what you already owe, preventing your monthly budget from becoming even tighter.

Key Numbers for Your Savings Start

• Even small amounts can make a difference, with ₹2,000 or ₹3,000 a month serving as a practical starting point for building your savings.

Smartly Redirecting Your Funds

The final step involves building your wealth by wisely using any surplus funds that become available. When an EMI finishes or an expense is successfully eliminated, resist the urge to upgrade your lifestyle immediately.

Instead, the money you were previously allocating to that payment should be redirected straight into your savings or towards other debt repayments. Even modest sums, like the aforementioned ₹2,000 or ₹3,000, can begin to grow.

Additionally, when you receive salary increases or bonuses, decide beforehand what portion will go towards debt repayment or savings. This proactive decision ensures your lifestyle expenses don’t automatically expand to consume all new income.

Ultimately, Aruna Keerthy highlights that financial well-being isn’t about having a flawless budget, but rather about developing consistent saving and debt-clearing habits. It’s about making healthy money choices you can stick with.