Borrowings and investments-What is sauce for goose is not sauce for gander

As you know that in the world of borrowings and investments, ‘one size fits all’ does not work. All investments do not become successful. All investors too don’t get successful returns on their investments. Your investments and borrowings have their own time pain and costs or may have ‘snake bite effects on you. No television debate and discussions will help you to come out of it definitely.

The moot question is what we do with failed investments and borrowings. How do we handle it? It is a zillion dollar question with no finite answer. Can it be passed on to next guy silently or to an organization like a plague? It is a front loaded question for which no investment bible has got an answer. Personal experience force me to define the situation as ‘quick sand’.

Then why do people wish to borrow for merry and make investment in stocks and in other financial products. I also thought about it many times and for this psychological hardwiring I don’t have straight answer.

Perhaps borrowers’ decision making process may be influenced due to ‘herd’ instinct or easy loan availability environment and the growing credit card and personal loan craze associated with so called consumerism. A press button situation.

In my school teachers and my parents taught me that if you borrow regularly for your consumption you will ruin not only yourself silently but deprive of many good things to your dependants too for generations.

On the other hand if you borrow to shape your entrepreneurial skills to start a ‘venture’ still you have chance to hit the bulls eye in your life!

I have come across many of my friends who broke every rule in the book of investment and hitting the bulls’ eye with their profits but the number is very less.

 Is it due to luck factor many times I wondered?

In the end of the day for many failed investments and borrowings  remains with you as your living shadow of worry.

In the world of investments, the best thing to do is to learn from mistakes and to rectify them as early as possible. There is no free lunch here!

What we  have to keep it in mind at this point is- averaging a bad investment is averaging a poor return, long run is not panacea for all investment errors, booking a loss is less costlier than carrying a loss and the moral is, what is sauce for goose is not sauce for gander. How many takers are there?

 I am of the view that retaining failed investments and engaged in continuous borrowing trappings is injurious to one’s financial health.  The exception is, it may stink, but if your borrowings are within your control and meets your long- term financial goals sometimes you just have to hold your nose and keep moving. But saying is easier than done so here!

Here I would suggest all borrowers and investors who aspire to millionaire status shouldn’t just read book titled“The MillionaireMind” (2000) by Thomas J. Stanley, but they should study it in order to get a view point on the type of thinking that helped these millionaires.