Hey friends,

Let me tell you a little story about my friend—let’s call him Sunny, because he always sees sunshine even when there’s a storm brewing. Now, Sunny’s buzzing with excitement because he’s planning to buy a brand-new Toyota Fortuner. (If you just whispered “that’s fancy,” you’re not alone.)

But here’s the twist: he’s buying it on 100% EMI. The whole thing is riding on a business plan—he’ll give the car to a rental company, use that income to pay off the loan, and voilà—a car that pays for itself and adds a little extra income on the side. Genius, right?

Well… maybe not.

On paper, this plan looks flawless. The numbers line up, the projections are neat, and the Excel sheet even has some green boxes that scream profit. But here’s where Butter (me) raises an eyebrow. Not because I don’t want my friend to win big—but because I’ve seen what happens when the math works perfectly, but life… doesn’t.

Let’s talk about the real stuff—the tricky, often-ignored side of financial risk that no calculator or confident salesman can prepare us for.

1. The Pandemic Problem: When the World Presses Pause

Remember 2020? Yeah, how can we forget. Car rental businesses crashed, travel halted, and people clung to every rupee. If Sunny had owned that Fortuner back then, his grand rental plan would’ve sunk faster than my willpower near a plate of hot gulab jamun.

Business models that only work in ideal conditions are fragile. If a single unexpected event (hello, global pandemic, or even just a bad tourist season) can derail your whole plan, then the plan isn’t as solid as you think.

2. Cash Flow Is Not Always a Flow

Here’s the truth: most small businesses—even established ones—don’t have consistent income every single month. Some months are brilliant, others barely break even. Rental businesses are no exception. Delays in payments, off-season slumps, car maintenance, minor accidents (because hello, Indian roads)—they all eat into that income Sunny’s depending on.

And guess what? The bank doesn’t care. That EMI is due on the same day, every month, rain or shine, festive season or flu season.

3. What’s Plan B? No, Seriously. What Is It?

This is the part that really worries me: if the rental business flops or just dips for a few months, Sunny doesn’t have enough salary to cover that EMI. Which means he’s betting the house (or, okay, the car) on one income stream that isn’t guaranteed. That’s not investing—that’s gambling with seatbelts on.

Every good financial plan needs a backup. Whether that’s savings, a side hustle, family support, or just plain caution—Plan A should never be the only plan.

4. The Emotional Toll of “Stuck” Decisions

Let’s say things do go south. Now what? Sunny’s stuck paying for a car he can’t afford and can’t sell without a loss. That kind of pressure eats you up. Financial stress has a sneaky way of draining your mental health, straining relationships, and making every decision feel like it’s weighed down with guilt and fear.

And honestly? No “passive income” is worth losing your peace of mind.

5. Why We Romanticize Risk (and Why That’s Dangerous)

I get it. We all want to grow. Earn more. Be financially independent. And sometimes, big risks lead to big rewards. But there’s a dangerous glamorization of risk these days—especially the kind that involves “no investment, high return” or “let the asset pay for itself” dreams.

Real financial growth is steady, informed, and comes with safety nets. Not just hopeful spreadsheets.

So What’s the Lesson Here?

If you’re planning a big financial move—whether it’s buying a car, starting a business, or taking a loan—ask yourself:

What happens if this income stream disappears for 3 months? Can I still sleep at night if this plan doesn’t work? Is there a Plan B, C, and possibly D? Am I mistaking optimism for preparation?

The goal isn’t to kill your dreams. It’s to protect them.

And Sunny, if you’re reading this: I love you, buddy. I’m rooting for you. But please don’t let a shiny new SUV turn into a heavy financial burden. Make sure the sunshine you see isn’t just a glare off a risky plan.

Love,

Butter

P.S. —have you ever taken a financial risk that felt solid but ended up a mess? Or maybe one that paid off in ways you never expected? Tell me everything in the comments. Let’s talk money, mistakes, and what we wish someone had told us sooner.