"There is no reason to risk what you have and need for what you don't have and don't need." — Warren Buffett
Imagine you have $100 million (approx ₹800 Crores) in your bank account. You are one of the most respected people in the corporate world. You have freedom, fame, and power. You can buy anything you want.
Would you risk it all just to make a little more money?
Most of us would say "No way! Are you crazy?". But in Chapter 3 of The Psychology of Money, Morgan Housel tells us the tragic true story of a man who did exactly that. A man who was an Indian hero but became a global warning.
1. The Man From Kolkata
Rajat Gupta was not born with a silver spoon. He was born in Kolkata and became an orphan at a young age. Yet, he fought his way up. He studied at IIT Delhi, went to Harvard, and eventually became the CEO of McKinsey & Company.
By 2008, Rajat Gupta was worth over $100 million. He sat on the boards of Goldman Sachs and Procter & Gamble. He was an advisor to the United Nations. In India, he was a legend—a symbol of what an educated Indian could achieve globally.
He had everything a human could dream of. But for him, it wasn't enough.
2. Why $100 Million Was Not Enough
Rajat Gupta moved in circles with billionaires. He saw people like Warren Buffett and Bill Gates, who had billions, not millions. Compared to them, he felt "poor."
This comparison broke him.
The Crime:
In 2008, while sitting on the board of Goldman Sachs, he learned a secret: Warren Buffett was about to invest $5 billion to save the bank.
Instead of keeping this confidential, he called a hedge fund manager (Raj Rajaratnam) and leaked the info. He bought shares illegally. He made a quick profit of $17 million.
The Result? He was caught. He went to federal prison. His reputation, built over 40 years of hard work, was destroyed in 40 seconds. He risked everything he needed (Reputation, Freedom) for money he didn't need.
3. The Problem of "The Moving Goalpost"
You might think, "I am not a CEO, so this doesn't apply to me." But it does. We all suffer from the disease of "More."
The Salary Trap
When you earn ₹30,000/month, you think ₹50,000 will make you happy. When you reach ₹50,000, you look at your friend earning ₹1 Lakh, and suddenly you feel poor again. The goalpost keeps moving.
The F&O Trader's Greed
In India, we see this in the stock market every day. A trader makes ₹10,000 profit in the morning. Instead of closing the laptop and being happy, he thinks, "I can make it ₹20,000." He takes one more trade, loses everything, and even wipes out his capital. He didn't know when to stop.
4. Social Comparison is the Thief of Joy
Why is it so hard to say "Enough"? Because of Social Comparison.
In the age of Instagram, the ceiling of social comparison is infinite. There will always be someone with a better car, a bigger house, or a more expensive vacation than you. If your goal is to be "better than others," you will never win because the game never ends.
The only way to win is to stop playing. To accept that you have "Enough."
Key Takeaways
- Define "Enough": Enough doesn't mean you stop working. It means you stop taking risks that could ruin you.
- Reputation > Money: You can earn money back, but you can never earn your reputation back. Protect it at all costs.
- Stop Looking at Neighbors: The "Sharma Ji Ka Beta" comparison will destroy your financial peace. Run your own race.
Frequently Asked Questions (FAQ)
Q1: Does "Enough" mean I should be lazy?
A: No. "Enough" is realizing that an extra ₹1 Lakh is not worth risking your sleep, your family, or your ethics. Ambition is good; greed is bad.
Q2: How do I stop comparing myself to others?
A: Limit your time on social media. Remember that people only post their "wins" online, not their loans or stress. You are comparing your reality with their highlight reel.
Q3: What is the most important asset?
A: Freedom. Money is just a tool to buy freedom. If you risk freedom to get more money, you are using the tool backwards.
Up next: Chapter 4 – Confounding Compounding (The magic of thinking big).
📚 Credit & Disclaimer:
This post is a summary based on the bestseller "The Psychology of Money" by Morgan Housel.
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