Budgeting can be great for building financial independence but often it also requires extreme discipline. At times, one may also need to make some sacrifices. For example, one of the biggest challenges with a strict budgeting approach is limitations on making big-ticket purchases, especially when some of these are unplanned which makes the concept of Smart EMI fairly important as will discover in rest of the post
Take the case of Arun, a digital freelancer with a strict budgeting schedule. With an increased workload this year, he realised that his 5-year-old laptop is in dire need of replacement. But a strict budget doesn’t allow him or give him the luxury of buying a new laptop, so he keeps delaying his purchase. As per Arun’s set-in-stone budget, he can get a new laptop only after three months.
It may look like a great approach to avoid out-of-turn high-ticket purchases, but this can also turn out to be one of the biggest mistakes when working with a strict budget. By deferring the purchase of a new laptop, Arun might be sticking to his budget but he is potentially compromising productivity. This can impact his ability to earn more money faster.
The advantage of Smart EMI
Sticking strictly to a preset budget may sound a great idea in principle, but we are only human and shouldn’t deprive ourselves from buying something out-of-turn on account of that. This is where Smart EMI comes in!
EMIs generally aren’t seen in a positive light. Many believe that EMIs are a bad financial product that allows people to buy beyond their capacity and then be burdened with high interest rates. However, Smart EMI can be a real help to your budget by making high-ticket items like electronics, furniture instantly affordable.
Financial partners like Kotak Mahindra Bank offer Smart EMI which is quite extensive and helpful to those on a modest budget. There are various ways in which you can avail Smart EMI:
- Instant In-store EMI: At any partner store, simply ask for the Kotak store representative
- Smart EMI Card: Easy repayments with a card that gives you everything on EMI
- Debit Card EMI: Choose the EMI option while using your Kotak Debit Card
You can also convert your Kotak Debit Card transactions into Smart EMI. Look out for our SMS after the transaction
The best part about any purchase you make is No Cost EMI! It means that you pay only what the price tag says.
You can buy everything on EMI using Instant in-store EMI, Debit Card EMI or Smart EMI Card while making your purchases from 14,000+ partner stores & 200+ shopping websites.
Kotak Smart EMI is available on convenient instalments of 3, 6, 9 or 12 months.
EMIs, when used smartly, can actually help with your budgets instead of hampering them. Especially with banking leaders like Kotak Mahindra Bank offering some exciting deals . It’s now more convenient than ever to rely on Smart EMIs for those seemingly unaffordable purchases.
What are your thoughts on using Smart EMIs? Think they can help you by letting you afford aspirational products without breaking your budget? Let us know.
Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.