How To Be Free From Home Loan Debt

Using mantras from the Bhagavad Gita, Vatsal Ramaiya explains how you can conquer your home loan debt and unlock a world of financial freedom and peace of mind.

Hey Rohan, feeling the burden of your home loan weighing you down? Don't worry!" Vijay Uncle's here with another verse from the Bhagavad Gita -- the importance of achieving your goals with unwavering focus.

Just like Arjuna, who relentlessly pursued complete victory, you too can strive for debt-free moksha (liberation) for your dwelling!

The Sixth Path: Vanquishing the Home Loan Monster

The Bhagavad Gita emphasises achieving our goals with unwavering determination. One of your most significant financial goals is likely achieving freedom from your home loan. This debt can feel like a heavy burden, but just like Arjuna vanquishing his enemies, you can develop a prepayment strategy to conquer your home loan and achieve a state of financial liberation for your dwelling -- your own debt-free moksha.

Imagine this: Picture yourself walking into your home, free from the weight of your home loan EMI (Equated Monthly Installment). That's the peace and security that awaits you on achieving debt-free moksha!

Here's how the Gita's wisdom applies to your home loan:

• Arjuna's Focused Archery (Ekagra Lakshya): Arjuna's unwavering focus on the target is legendary. Similarly, develop a focused prepayment strategy for your home loan. Channel your resources towards reducing the principal amount, thereby saving on interest payments in the long run.
• Krishna's Message of Strategic Planning: Lord Krishna emphasised the importance of planning and strategy. Create a financial plan that considers your income, expenses, and potential windfalls to accelerate your home loan repayment.

Developing Your Debt-Free Moksha Strategy

The Bhagavad Gita teaches us the value of well-defined strategies. Here are some steps to help you conquer your home loan:

1. Increase Your EMI (if possible): Even a small increase in your EMI can significantly reduce your loan tenure and total interest payout. Think of it as Arjuna's powerful arrows chipping away at the enemy's forces.
2. Eliminate All Debts: This is a crucial step before focusing aggressively on your home loan. Just like Arjuna eliminating enemy commanders first, prioritise paying off all your existing debts, especially high-interest ones like credit cards. This frees up significant resources to target your home loan with greater force.

Important Consideration: Prioritise Essential Steps First

Remember, after diligently fulfilling your obligations towards your child's education (The Fifth Path

This ensures a strong foundation for your future financial security before concentrating all your resources on conquering your home loan.

Additional Prepayment Strategies (Once Basic Needs Are Met)"

• Utilise Windfalls and Savings: This step applies only after you've taken care of essential financial needs and eliminated all other debts. Any bonuses, windfalls, or significant savings can be used for lump-sum prepayments towards your home loan, delivering a powerful blow to the remaining principal amount.

"Remember, Rohan, achieving debt-free moksha for your dwelling is a marathon, not a sprint. The Bhagavad Gita reminds us that perseverance and focus is the key to achieving our goals.

"By developing a strategic prepayment plan and staying disciplined, you can conquer your home loan and unlock a world of financial freedom and peace of mind."

Bonus Tip: Consider a Balanced Approach

Just like Arjuna used a variety of weapons on the battlefield, you can explore a balanced approach to debt repayment.

While increasing EMI or prepayment are excellent strategies, it's also important to maintain an emergency corpus and invest for your future goals. A SEBI-registered financial advisor can help you create a holistic plan that considers all your financial needs.

• Please click HERE to read earlier articles on How To Retire Early

Vatsal Ramaiya is a personal finance expert with 16 years of experience with India's top mutual fund houses. He blogs at mfnow.in.

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