Sujit Kumar, 25, has paid off 75% of his family’s loan within 18 months. Coming from a farming family, he says joining the 1% Club has played a big role in fixing his and his family’s finances.
Sujit says after completing the personal finance modules provided to members, he was able to fix his family’s finances. “We conducted a deep dive into our financials, assessed it, and restructured it. We paid off most of our loans with our savings and investments and for the remaining loans, we switched from high-interest unstructured loans to low-interest structured loans.”
He has also got his family members secured through health and term insurance policies. “Everyone has started budgeting their finances and is investing in various instruments regularly.”
After joining Tata Steel as a junior engineer five years back, Sujit knew his family’s finances were a mess. Despite his humble beginnings, he is now moving towards financial independence.
Early Life and Education
Sujit’s father, a farmer, faced numerous financial challenges and often had to manage loans under difficult conditions. “My dad was aware of managing finances but couldn’t fulfill the same due to abundant responsibilities,” Sujit says. He recalls how his father dealt with loans only during crises, often letting interest compound until it became unmanageable.
The Turning Point
The turning point in Sujit’s financial journey came in 2019. After completing his diploma in 2018 and securing a job, he began to read financial news and articles. Influenced by finance influencers, he started to understand the importance of proper financial management.
“After we started helping our dad pay off loans, we saw that the principal amount was X and the interest amount was 3X. That’s when we realised that we were in a complete mess and we must take charge before the matter gets any worse,” Sujit explains. This realisation pushed him to take control of his family’s finances.
Joining The 1% Club
In pursuit of financial knowledge, Sujit followed various financial creators and joined Sharan Hegde’s masterclass on December 4, 2023. This eventually led him to become a member of The 1% Club.
Being part of this community, Sujit associated with like-minded people who had side hustles and were starting new ventures. He explored financial tools and modules in detail and learned valuable lessons that he applied to his own life. He has also shared the learnings with his spouse and family members.
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Financial Practices and Investments
Sujit’s approach to finances became more structured and disciplined after joining The 1% Club. He prioritised paying off high-interest loans and rebalanced his savings. He is planning to pay off his structured loan of Rs 4 lakh within a year. His portfolio now returns a healthy interest, and he is confident in his investment choices.
“My investments are mostly in equity (mutual funds and stock markets combined). I also invest in PPF, NPS, etc., for tax-saving purposes. My emergency fund is in FDs,” Sujit says. His disciplined approach to investing and saving has not only improved his financial stability but also enabled him to educate his family.
Message to Fellow Farmers
Sujit is passionate about sharing his financial knowledge with others, especially those from similar backgrounds. He emphasises the importance of planning, budgeting, and avoiding unnecessary debts. “Please plan your finances and do budgeting for your expenses. Execution of that plan is a must,” he advises.
His message to fellow farmers is clear: avoid unstructured loans and make use of the robust banking system our country has. “Debts will drain you, your resources, your peace, and your energy. Avoid loans if possible,” he cautions. Adding further he says, “Compounding is precious. Please make good use of it. Start investing regularly.”
Disclaimer: The above content is based on the information provided by Sujit Kumar. The 1% News doesn’t independently verify non-public data reported by interviewees.
