One of my clients wanted to construct 3 floors independent house 🏡
before starting construction he said, I will sell 1 out of 3 plots to arrange money for construction
I said him – just construct a floor and move to house as you dont have enough money to build 3 floors. You can add floors after couple of years when you save money. But he didnot listen ❌
He kept the land in market for sell but no one came to buy
He took a personal loan to start with construction thinking he will be able to sell the plot in 3months
After 3 mons, he ran out of money and plot was not sold
He had some investments in mutual funds, He withdrew all mutual funds and resumed construction 📉
After 7 months, all the money he had is over along with amount withdrawn from mutual funds and some savings in FD and took some money from mother
construction completed about 60%
No savings, no investments, all he had was 3 unused plots
During this time, his mother fell ill 💉🩺
While he had corporate health insurance, the hospital bill was 6.4 lacs
out of which he had to pay 30% – that comes to 1.95 lacs from his pocket
He took credit card outstanding and converted to emi to pay hospital bill
Revolving around personal loan emi and credit card loan emi
He borrowed some money from friends and somehow finished a single portion on the ground floor
After that, he said he will sell any 1 out of 3 plots to freeup the loans
His wife is not allowing to sell 1 plot
His mother is not allowing to sell another plot as its a combined property among brothers
and he is unable to sell the last plot
Its been 2yrs now
he looks tensed
lost most of his hair and looks bald head now
no freedom at job and office
unable to come out of loans and emis
he is unable to show his face to friends because of the loan he took from them
he is not picking their close friends calls also these days
his house is still unfinished with just slabs upto 3 floors
Summary – The best thing in personal finance is to learn from others mistakes
and avoid getting into such situations
Because, a mistake in your own life can make you fall from 21st floor to ground floor in very short time
so that you cannot even climb to 1st floor there after