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Calculated risks, peace and health



A well known Kannada proverb “ಹಾಸಿಗೆ ಇದ್ದಷ್ಟು ಕಾಲು ಚಾಚು.” roughly translates to “Stretch your legs only as much as the mattress allows you to”.

Until a few years back, calculated risk meant speculating on salary increase over next 20 years and borrowing an amount that would seem small by then. This money would then be invested on a real estate property that would appreciate in value and beat the inflation plus also the interest rate. Ex: Consider you have an income of 3 Lakhs. An amount of 5 crores would seem pretty high to you today. However, the value of 5 crores in 20 years would probably be the same as value of 5 lakhs today, considering inflation. The interest on a loan of 5 crores will probably be 50 lakhs per annum. Speculating on salary increase and redirecting this salary increase towards prepayment of the loan, one would expect you to pay off the loan in 10 years. Though the author here is not an accountant to get proper calculated value, on a rough estimate in 20 years you would have spent 20 crores on the property. You would be in profit if the real estate appreciates beyond that. This was happening and probably is continuing to happen. It is not improbable to expect such properties to be valued at minimum 50 crores in 20 years with the history of inflation.

However, the salaries aren’t increasing much for certain age groups. The speculative purchase is adding a big burden on such people. One would be risk averse with an existing exorbitant loan amount. This would lead to sticking on with the current job whether there is growth or not. It is possible that this situation is noticed by the manager. Naturally the manager would want to exploit this. Now you are stuck. You know you can do better elsewhere. You have great ideas. But you are like a bird with wings clipped. This can impact your mind and body. You loose confidence in yourself. This slowly impacts your health.

There is an alternate investment opportunity. Invest on yourself today. Lead a Yoga way of life. It slowly works on you, your relations, your way of thinking and your confidence. The wings get strong. Taking alternate jobs or executing some of your ideas will then be a possibility. You are not tied down any more. Looking back to the proverb, you can measure your mattress now. You have the clear mind required to speculate. You can buy a new mattress according to your growing legs. You now know how to increase your income and do not depend on a single source. You can still target that 50 crores in 20 years to beat the inflation. But it doesn’t bog you down. You now have the weapon of Yoga, “Do the duty, try to soar, but be aware that you don’t control the wind or the storm.” This will make you calm. Most probably you will achieve the 50 crore target or more. If not you will surely have led a contented life.

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