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It’s important to create a budget before taking out any loan. This will help you understand what your monthly payments will be and if they will fit into your overall financial plan. Then, you can prioritize your debts and savings goals.
To create a budget, start by calculating your net income. This is your total income minus all of your expenses. If you find that your current budget is not working, try making small changes. For example, you may be able to save more by lowering your spending or increasing your income through a side hustle or another source of income.
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