Saturday, March 22, 2008

I Am In Debt. What Do I Do?

Let me first hope your Holi, Eid, Good Friday, Easter and Norouz were filled with smiles and happiness. I feel all our human emotions are the same and irrespective of what our religion is, we all are one. Let us celebrate this life to the fullest!

Several of you have sent me e-mail sharing a lot of personal details regarding your financial goals as well as your personal life. It is really nice to hear from all of you, even though sometimes I might take slightly longer to reply. I have been trying to reply to as many e-mails as humanly possible while juggling other things. I think soon I should add the title “E-mail Author” to my name! But jokes apart, please do continue sharing your ideas and thoughts with me. It lets me know what fellow Happionaires really want; most of us all want pretty much the same things in life.

Several of you have given me a lot of feedback on what you would like to see here and what all can be done to help Happionaire investors more. I shall be looking at all those suggestions and ideas and inshallah implementing them soon.

A few of our fellow Happionaires are presently heavily in debt and facing challenging times. You could be one of them or might know somebody like that. Being in debt can be something very difficult especially if the loan you took was invested in the markets.

A few stocks that have fallen over 60% have multiplied the pain for people who borrowed money to invest. A few of you have asked me if you should take additional loans and invest with me or take my advice.

Please remember that taking a loan to invest in stocks is very risky irrespective of whose advice you take. I am a regular human being and prone to mistakes just like anybody else- or maybe even more than others. Borrowing more money and taking my help to invest is not at all a good idea. Even though I try my best to understand a business as well as possible, I have and will continue making mistakes. Of course as long as I am more right than wrong, I am good.

The thing about investing, business or even life is that you don’t necessarily have to be 100% right always. Some of the best investors in history have done very well for themselves with an average success rate of 70%.

If you are in debt, I would suggest you try to look for alternative sources of income where you don’t have to invest additional funds. It could be a new side-business, a new job which pays you more or a second job along with your present job. Try cutting down on your expenditure- you don’t have to eat out, go for movies, shop for new clothes or take the car to work. If a major part of your income is going towards the payment of your house EMI, try moving out of this place to a smaller house in a cheaper area and living on rent for sometime. Or alternatively if you have the opportunity to live with your family, please do so. Several people usually have a large part of their income going towards their house EMIs, which isn’t really the best thing to do especially if you are heavily in debt.

Cut down on everything you think is not necessary, but please don’t stop smiling or letting your financial situation bring you down. Instead the more you smile and spend time with your family and friends; the more confident you will feel and easier it will be to overcome your challenges.

If you are in debt now you will have to make a few sacrifices so that you can get out of it. The things you sacrifice are not at all important for you to live happily. I know people who were in debt sometime ago, and just because of changes in their lifestyle and mindset today are out of debt, and in fact doing very well for themselves. Once you are out of debt, you can invest in a disciplined manner and grow your wealth. Opportunities keep coming and based on what you do today, you will be able to make the most of future opportunities.

Look at this as a great opportunity to take control of your finances and your life. Do not let anybody else control your life or finances and instead be brave and face whatever has been thrown at you with courage.

Whenever you feel sad, depressed and feel everything is over- just think about the millions of other people who don’t even have basic sanitation, food and clothing. People, who can’t read and write and don’t have basic necessities. You truly are lucky and blessed, that you are skilled and can read and write. A very large majority of our fellow human beings are not as lucky as us. Try thinking about all that you have and you will feel much better and feel very privileged. Inshallah we will be able to create more opportunities for everybody together. I believe that the best way to solve problems is to convert them into challenges and make sure we are able to establish a system which makes sure money is generated. The only solution I see for solving issues like poverty is entrepreneurship, education and empowering people with skills and knowledge.

As all of us Happionaires create wealth, I would want our ideas, knowledge and wealth to spread and be shared with everybody. I am not talking about charity and hand outs, but rather making sure we can create opportunities that everybody can make the most of. I feel the best way to eliminate poverty is not charity, but making sure skills are developed and utilized. Let us all have a vision and make that a reality through entrepreneurship and skills.

Don’t lose hope and work towards getting out of your financial problems, slowly things will improve. Don’t try looking for short cuts to quick wealth and ‘magical’ stocks which will multiply your wealth overnight. Stay positive and I assure you that things will improve. Everything does work out for the best!

Happy wealth creation and I hope all of you have a smile on your face right now!

Yogesh Chabria

© Happionaire

Find out what fellow Happionaires have to say about Happionaire's Investing Strategies


Anonymous said...

Hi Yogesh,

Wish you a very happy Holi, Eid, Nourouz and Easter too and also to all other Happionaires here! It is really nice to see the whole nation taking part in each other's joy. Let us promote this culture of peace and co-existence. Let us promote the culture of being Happionaires. I wish people like George Bush and Osama followed the Happionaire way and we could have such a better earth.

You are doing something very nice and helping millions of us with your motivation and words which inspire us.

SONJOY said...


SONJOY said...

Hi Everybody...First of all I would like to congratulate Yogesh for the response he is getting from his fast growing Happionaire family, seems all of us were looking for this kind of hand holding which has made the world of investment more humane.

I think these dimensions are much more important for Financial Planning and financial freedom than fundamentals and technicals of the market.

Wish u & our family members all the best.

Anonymous said...

Happy greetings of all seasons to all fellow friends and Happionaires from my side too!

I agree fully with you Sonjoy that when things are made more humane and personal it becomes more easy to learn and understand. I have never liked these people who come and pretend to know things by using hard words instead of explaining things in a simple way.

The report for instance was so lovely and easy to understand, and at the same time helped me understand so much about investing.

I am sure our numbers will keep rising and we will soon have billions of Happionaire all over the world. I am really look forward to other activities too.

Keep smiling!!!

Behappy said...

Well, being in debt is not a big sin. It is quite possible, for one reason or the other you have taken some loans and YOU HAVE TO REPAY IT. That is very important. The Lord is ever merciful and HE will always come and help us, if we really try.
A two pronged strategy of reducing expenses and increasing income will certainly help.
How to increase the income? Well, forget the money part of it, then money will flow by itself.
Suppose I decide on taking tuitions to increase my income. Do not calculate number of children * the fees etc. But try to find some child who needs tution, take classes for him with the thoght that you are going to make him get the first rank. Work for the students' rank, not for your money. Apply this principle in your daily life.
Soon your life will take a new life.
This is based on the simple principle of loving and sharing.
Make others rich, so you become richer.
Make others happy, so you become happy
Make others healthy(by taking care of the environment) you will have good health.
Have we ever thought how our own body works selflessly.
When the toe is hit by a stone, the hand immediately jumps in to soothen the finger. The eyes coordinate and the toe finger is soothened. The food that has entered the stomach, is given off to every organ.
Well, so many such examples can be quoted.
So I am sure by helping others we will in turn be certainly helped.

Anonymous said...

Really appreciate your honesty and sincerity. You are right in agreeing that nobody can always be right.

These analysts on TV say things according to the times and are never honest enough to accept that they can be wrong. There is nothing wrong in being wrong, and in fact it makes me an even bigger follower of yours and the Happionaire way because you accept that mistakes are possible.

Also I loved what you said Gopal and Sonjoy! It is good to see people from all across India here sharing ideas together in peace.

Anonymous said...


The realistic part of "I am in debt . What do I do " is quite appealing. Trust me, it is very easy to write logical way out from debt/crunch situation, but emotionally speaking to make out or changing isn't that easy as you suggest.

Happy holi....yes truly holi is the indication of change of season, hope the same works for the markets....

Anonymous said...

I'm handling a private India fund from New York and after reading you report Yogesh, we would love to look at this company. The level of simplicity in your thought truly is amazing. I have realized that at the end of the day it isn't us sitting in the office with laptops that matter- but what is actually happening on the ground.

Please continue sharing such reports so we can bring sanity and simple logic to the world of investing.

The Happionaire™ Blog said...

Thanks Krishna, Sonjoy, K. Mehra, Gopalakrishnan, Karthik, Jaiz and Reema.

I'm sure together we will be able to be financially health as well as mentally healthy and happy. Do keep sharing your lovely ideas. I loved your views Gopalakrishnan, Sonjoy and Jaiz.

Yogesh Chabria