TomorrowMakers

How I came out of the debt trap
Rohit Prabhu
Blogger

I love buying new gadgets. If the latest phone or tablet or headphone has been launched, I have to buy it. My friends know me as the ‘gadget guru’ and I have a reputation to maintain. I have been doing this over the last few years without a care in the world.

However, last year I realised that I owed around Rs 2.5 lakhs as credit card debt. This was primarily because I would only pay the minimum amount due. Due to my lack of understanding about personal finance, I kept wondering how come this happened.

Once I started reading up, I realised that by paying the minimum amount due, I was helping the credit card company charge interest on my pending outstanding which snowballed into a huge amount over a period of time. My parents were considerate and helped me to arrange 50% of the amount. I sold some of my old gadgets and took an advance from my employer to arrange for the remaining funds. In September 2018, I paid off my credit card debts completely and then started focusing on creating savings.

My father explained the importance of investing in mutual funds and I realised that they offer attractive returns over a longer term. I have started investing 60% of my savings in mutual funds since then and I am happy to note that I am in the right path towards attaining financial independence.

How I did it

Manisha Tomar
Doctor

Since I had been working only for two years, I never gave retirement any serious thought. My mother has been a housewife and father was working till last year. When he retired, he discussed his savings with me. That is when I realised that his retirement corpus was woefully inadequate. But he… Read more

Rohit Prabhu
Blogger

I love buying new gadgets. If the latest phone or tablet or headphone has been launched, I have to buy it. My friends know me as the ‘gadget guru’ and I have a reputation to maintain. I have been doing this over the last few years without a care in the world.

However, last year I… Read more

Nisha Tanwar
Sales Manager

Ever since I was a college goer, I was keen on starting my own business. Most of my childhood friends were Gujaratis and Marwaris and I was heavily influenced by their communities’ belief about creating jobs rather than taking up a job.  Being from a non-business background, I was aware that I… Read more

Jerry Thomas
Corporate Executive

Till the beginning of last February, I always believed that one could only create wealth if one already had a lot of money to invest. Therefore I didn’t believe in starting with small savings and would instead be always on the look-out for a big-ticket opportunity that could change my life.… Read more