Football fever has taken over the entire world. Whether you’ve been lucky enough to actually go to Russia and enjoy the experience of a lifetime, or you’re watching the matches at home in the company of friends, you have probably spent more money than what you’d hoped.
In case you find yourself in a bit of a financial hole, here are some ‘football style’ steps you can take to claw your way back into the game.
Know your formation
Just as in football, you need to have a system in place. And the defence is the starting point. A strong base means you can launch a quick counterattack. In your case, this equates to your budget. You should allocate your take-home salary thus:
- 50 per cent on fixed costs (rent/home loan, medical insurance, car loan etc.)
- 20 per cent on savings (mutual funds, fixed deposits, recurring deposits etc.)
- 30 per cent on discretionary expenditure (clothes, entertainment, leisure, holidays)
Here’s another thing: people who spend less than 50 percent on fixed costs tend to feel abundant, but any more than that and they will feel stretched. Just like the defence would be in football if not well-drilled.
Loans are a necessity today – when it’s to settle your credit card loan, buy a home or car, or pay for higher education. Sometimes you may need to borrow for unanticipated expenses; and a personal loan might be the only way to prevent a calamitous own-goal that destroys your meticulous budget.
To keep your defence strong, a Tata Capital Personal Loan comes with its own three-man central defence:
- Step-up Flexi EMI – You start off by paying a smaller EMI, which increases at defined periods until the loan is paid off. Such loans are ideal for people who expect their income to rise at regular intervals.
- Step-down Flexi EMI – The initial EMI is the highest, and subsequently falls with time. Such a loan is ideal for someone relatively older who can afford to pay an initially high EMI, and see it fall over time so they have more disposable income.
- Bullet Flexi EMI – These loans are ideal for people who receive periodic inflows and can manage intermittent payments towards the principal and interest charges, thereby reducing EMI payments substantially. There are no prepayment charges, and the loan includes a very high degree of customisation.
Midfield is the heart of the team
The ability to create opportunities, as well as prevent threats, is the primary responsibility of the midfield. Credit cards can be a lifeline, but if you’re drowning in debt it means you can’t be enjoying life. Debt impacts all aspects of your life.
List all loans and debts, including the interest and amounts to be repaid. This makes it easier to rank them in order of priority, and then plan your repayments. For many, credit card debt should be on top of the list, and it’s an excellent move to pay this off first. Then see if loans with lower interest rates can be deferred.
Set timelines for each of these, and most importantly, adjust your lifestyle to bring strength back to your midfield.
Substitutes can be game-changers
In any match day squad, the manager would have named substitutes – players who may not be as good as those in the first eleven, but who can be ready replacements in case of injury or a change of tactics.
As in football, there comes a time when every business faces problems that hinders its smooth functioning. A business loan from Tata Capital is designed to help you to expand, invest, or meet working capital needs. The arrangement can be a revolving loan too – one which you can withdraw, repay, and redraw again in any manner and any number of times, until the arrangement expires.
These are the chief benefits of a business loan from Tata Capital:
- No guarantors and no collateral – If you meet the criteria, you get a loan on your own cognisance
- Pre-approved offers – Exclusive offers to existing customers, keeping your business position in mind
- Online account access – Information on your business loan can be accessed online
Think like a manager
Football is a game of risk, and it is the business of a football manager to look after everything to do with the team, including which players to buy or let go. But there’s a board of directors at the club, who have a broader view, which is also very important. Likewise, when it comes to managing your money, you need to have a good idea of what kinds of investments you’re comfortable with, and the level of risk you’re prepared for.
It’s important to know the EMI, as this represents your monthly cash outflow when applying for a personal loan. Tata Capital Personal Loan EMI calculator indicates the EMI, principal, and interest payments over the loan tenure. With this tool, you can quickly deduce the loan amount you can afford.
If you’re unable to repay the loan on time, it will definitely impact your credit history, and affect your eligibility for future loans. Like a football manager, bad decisions at this stage could spell the difference between winning the title and finishing as an also-ran.