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1. Financial Planning Tips for Home Buying Buying a home that meets your needs and financial goals is a major milestone for many. However, With high inflation and limited income sources, home ownership has become increasingly difficult for the average middle class. In this Blog, we will guide you with the necessary tips you should take before buying a house, focusing on effective home-buying financial planning. Financial Planning Tips for Home Buying in India Start early with budgeting- Understand your financial picture months before you start house hunting. The earlier you budget, the better prepared you’ll be to handle costs efficiently. Know your credit score and improve it- A higher credit score helps you get a home loan at a lower interest rate, which eventually helps you to save thousands over time. Learn simple steps to boost your score before applying for a mortgage. For more information on how to improve your credit score, you can visit our Account and Tax Support Category. Consider all associated costs- Before purchasing a home, consider all ongoing costs such as property taxes, maintenance, and utilities fees. Build these into your budget for a clear picture of affordability. Focus on maintaining regular income sources- Maintaining a regular income source before applying for a home loan can help you maintain your finances. If you belong to the private sector which is impacted by recession then its a wise decision to postpone a house purchase till you are sure of job stability. Prepay next six-month liabilities-It is suggested to pre-paid all the next 6 months’ liabilities such as kid’s school fees or ongoing Insurance Premiums and so on. This amount should be kept reserve to fulfill these liabilities on time. Keep three months EMI as a reserve- Keeping three months E.M.I as a reserve is important in case of any unforeseen circumstances you are unable to pay EMI on time. Any default on EMI can spoil your creditworthiness for the future. Seek professional advice- Seeking professional advice through a reputed company such as Rits Capital can help you navigate the complexities of home

2. buying, from budgeting to long-term planning, ensuring you make the best decisions for your financial future. What is the 40-30-20-10 rule for financial planning for buying a house in India? The 40-30-20-10 Rule is a simple guideline often used in personal finance and investing. It helps individuals allocate their income or investments in a balanced way. Here’s how it works: 1. 40% – Needs This portion is for your essential expenses, such as rent or mortgage, utilities, groceries, transportation, insurance, and other basic living costs. Goal: Ensure that your essential needs are covered without exceeding 40% of your income. 2. 30% – Wants This portion is for discretionary spending, including things like entertainment, dining out, travel, hobbies, and any non-essential luxuries. Goal: Manage your lifestyle choices and avoid overspending on items you don’t need. 3. 20% – Savings & Investments

3. This portion should be directed toward your future financial goals, including saving for retirement, building an emergency fund, or investing in stocks, bonds, mutual funds, or real estate. Goal: Build wealth over time to ensure financial security in the long term. 4. 10% – Debt Repayment This portion is dedicated to paying down any outstanding debts, such as credit card bills, loans, or other liabilities. Goal: Reduce debt to minimize interest payments and improve your financial health. Final words- Buying a home is a demanding task. It needs years of savings and a vast period of research when the time comes to buy the property. However, the outcome is truly rewarding. Purchasing a house takes proper financial planning and well-informed decisions. So, save consistently for the down payment, keep a strong credit score, and fully understand your home loan possibilities. For more information Related to financial planning tips for home buying you can visit ritscapital.com . Our certified financial advisor work 24*7 to solve every possible query of your. Source:- Ritscapital