Hello fellow Steemians, how are you?
Now I feel it's time to continue the story I've been sharing on this blog, the journey I decided to post here. This will show you that I mean it when I say my life has not been all easy cruising as some might think and I've had to endure my fair share of troubles just like everyone else. These problems though allow us to construct the right mentality, strengthens us so we can face any challenges that can present themselves.
Continuing from "My first Big Mistake"
When I was 25 years old I had amassed a debt of 1 million dollars, and that was a monumental sum for any age, imagine for a 25 year old. This presented a lot of weight for me psychologically because when we are young, we tend to think those things will never happen to us, we believe ourselves to be powerful, inmortal. It's not until we hit the first wall that our maturity comes to be tested.
Of course I had a lot of things in my mind, but it was not just the sum of money that tormented me, but how stupid I felt for having fallen into that error. I spent many nights not being able to sleep, but at the same time I had to make sure that in the public eye it was not obvious that I was going through some rough times, especially with those who I did business with.
When we are in a situation like this is important that we don't show that we are depressed, or upset, or play the victim in front of those that we do business with. I can guarantee that if you allow any of that to happen it will bring many problems, because humans can have this capacity of distorting situations and plenty of times begin to badmouth you: "Oh, this guy is broke, we can't do business with him" When it would be nice for them to extend a helping hand, specially if you had a long working relationship with them.
So it's important to shut your mouth around those who are not really your family if you are having problems, and only talk to those who you know have your back, those you can trust, but those I can guarantee are very few. I would say that even with family it can be difficult because you can create anguish in them and sometimes they can't do anything to help you anyways, but that is a personal decision for you to make.
In my case I could not bring myself to tell my parents of my problem, I was a son of a working father, I was not born in a golden cradle and my father had a modest salary. How could I tell him that his son had accumulated a million dollar debt? How could he help?
I knew I would just make him miserable, specially because those numbers were beyond his capacity and I found myself staying quiet.
You are probably asking: How did you get out of that debt?
The first thing I had to do was to dominate my emotions, and work on my emotional intelligence, not make any rushed decisions. Because it's like being on a plane that is having problems mid flight, what good would it do for you to scream where is the exit at full lung? Nothing, so you have to calm your mind.
I went into my office and started to write down some ideas to develop more revenue, because my problem was in financing, that is where my focus went. I have to say that Brazil is a very hostile country for business, with interest rates that are so absurd they don't seem real. For reference a %400 APR is pretty standard here and it has been ridiculously high for decades.
So what did I do?
1.- I grabbed all my open orders and projects that were quoted on one side and made a big pile, added them up. You know why I still had work? Because I never let anyone know of my situation.
2.- I grabbed all my debt invoices and accounts and made a separate pile on the desk.
After working out the revenues and cash flows I ideally needed to be able to pull this off, I came to the realization that it would at least take me three years to get back on my feet, keeping in mind there was almost no room for error, everything had to be precise.
Because the problem was finances, my focus was on developing a good cash flow for the companies. Cash Flow is something very important that everyone should learn about, but the subject is quite extensive, so that might be another post down the line.
I started to renegotiate all debts I had with each Bank and Institution, my attitude had to be assertive because Banks are not too willing to negotiate too much in Brazil.
I personally called every single Manager asking them to see me, and managed to bring down the monthly payments by 20% of course extending them, but I needed the money to stay in business. In other words 80% of my revenue went to pay all the debt I was paying off, so to make up for it, I had to focus on increasing productivity, that would be the only way of getting out of the problem faster.
When I tell you that my attitude with the Bank Managers was energetic and assertive, I'm going to share with you one of the experiences I had with one of them.
The Bank manager was sitting in my living room, and I was showing him my proposal of repayment of debt, he looked at me and said: "This is impossible!" I quickly responded "Oh yeah? I'll show you impossible"
I had a jar full of mints on top of my table at this point, I look at the jar, look at him and say: "Do you see this jar of candy?" he of course nodded.
I continued "that is pretty much how many Institutions I owe money to, each candy represents one bank, But do you see the candy on top?" He nodded again "Well, that's you and I'm telling you I'm going to do my best to give you priority and repay my debt as soon as possible.... But if you tell me it's impossible, then I will have no choice to put the mint that represents your Bank at the bottom of the jar, and then this debt will be the last of my priorities"
I continued. "Go talk to your supervisor, and make sure he understand that you don't want to be the last mint inside my jar"
One week later they took my proposal to re-negotiate my debt, and we signed all the papers. And this little tactic continued in one way or another until I restructured the whole thing.
I want to be clear about something, I never stopped paying my debts, but with that attitude I made sure that it was possible and I had to do it to be able to have an adequate Cash Flow to stay in business. It's about giving yourself your place.
What I'm trying to tell you with this message is that no matter how hard the situation can be, you must stop defaulting to just complaining, you have to learn to dominate those emotions and focus on finding a solution.
I wish you all much success, until next time
Great experience to apply to many aspects of life. In spanish there is a saying that can relate by saying “en mal tiempo, buena cara.”. During bad times, have a positive face! As you point out, composure is key particularly if you are the leader other are looking to for motivation to continue forward. I can relate as my experience in buying a home was the worst timing as I purchased at the peak of the housing market in the United States. While it has since recovered, it is a hole that has taken 10 years to overcome and not impact other aspects of my financial life. Thanks for sharing!
Thank you for you time, kind words!
other expresion is... "keep calm and stay focus"
Very much motivating post. You are right dear @chbartist that we should not open our emotional side with everyone. Especially with our business partner we should stay strong and it might impact us in negative way. Everyone have his own types of challenges in life and such articles really give them courage to fight with them and come out as successful man or with a worthy experience. Good work buddy.
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Thank you so... Friend!
Your life story is very inspiring for us. One million dollars debt is so much that ordinary people would crush under the pressure of it. But, you managed things brilliantly. The way you got loan from the bank shows how innovative ideas can be fruitful.
Determination, hard work and brilliantly executed ideas can make impossible possible.
Thank you @akdx
stories like these inspire us not to stop, I've also gone through times of many debts, none of 1 million dollars, but if they have been debt that has taken my sleep, but there is always a healthy way to manage how to produce money! Sometimes you have to know how to take risks, there are some that are worth it, you just have to meditate and see all the options and outputs that this risk can generate.
Thanks for this post it is very motivating and instructive!
Thank you for your very kind words!
I love this! It is in line with something I truly believe in: Those that fail gave up, those that succeed figured out a way to make it work.
You are an inspiration and I think a lot of people could learn something from this post! No matter how big the obstacle may seem there is always a way around it!
Thank you @annemariemay for your kind words!
Of course! It was a great way to start my day off on a motivational note!
I am close to that mistake but thanks I saw your post about that.
Can you give me an idea to start a business that requires a big structure from scratch.
Because my mindset is to take a loan. That I don't know the possiblity of my business booming to generate enough to payback.
In reality your mindset has to be contrary to that thinking. the big businesses must start with small investment, and grow organically with time and good administration. About taking out a loan, i would say it depends on your country, the interests you would be paying and all... its not really me telling you not to do it, but for you to be careful about it.
Thanks.
I will be starting from little to aim high.
Dios te bendiga y perdón por el retraso, me has saludado en dos ocasiones pero no me acordaba de devolverte el saludo, por eso una vez más te pido perdón. También quisiera aprovechar para pedirte un favor, soy nuevo en Steemit desde agosto y mi nivel de reputación y de 33. Hay alguna manera lógica de subir mas rápido esta puntuación o no es necesario hacer nada porque sube sólo sin necesidad de hacer nada?
Muchas gracias y Dios te bendiga mucho.
Gracias, saludos!
Your point is right. If we get frustrated in any problem, then we do not go out of the way to get out of it.
But we forget that the solution to that problem is with us, it is only late to understand
Translation with gogle hindi to english
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Realy men your post is so motivational for me ...
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Nobody looks for problems and more if they are financial, but at some point in life we can have them. Although problems are part of our lives, we must face them, learn from them and look for solutions.
Yes friend, we will always have financial problems during our journey but the important thing is to learn to be dominant about it and not that it dominates us.
wao, you were very firm in what you said to the manager ... The firmness convinces a lot ... when a person hesitates they do not take much into account what he says ... So the firmness was your great ally ... You remind me of my mother, she is like that ... Very firm ... That's something I want to put into practice but many times it costs me hahaha ... Your life is very interesting!
Thank you blessed!
If we are facing problems then we can share it with those friends who have the ability to give some advice.
we need to overcome the difficulties which arises in our life. We can change one's mind by giving him logic. We should create talent ourselves. We should have the ability to convince someone. And we should not repeat mistakes.
Thanks @chbartist for sharing your experience with community
Thank you for contribute and your time!
@chbartist great post as always.. amazing experience you have face in your life.. and yeah whatever the situation is we have to face it... and focus.. really helpful while reading this post.. appreciate it!
Thank you for your comment!
its my pleasure:)
Being strong while you are broken, can change everything in your favor. People see what we made them see our strength lies in our thinking. We you make yourself unbreakable then no one else can break you. Be strong be happy 😊
Exactly, I wish the best for you!
Thank you 😊
Buena la reflexión, es mas productivo mantener la calma y buscar soluciones, siempre habrá una solución al problema y debemos ser muy discretos porque son muy pocas las personas en las que podemos confiar.
Si, siempre habrá una solución!
Golden.
Admire your courage to tackle the problem with such audacity and negotiating with even more audacity, this is called tackling one's problem head-on.
Thank you for sharing @chbartist, a new follower but this post is making me want to dig through your older posts. resteemed.
Thank you Friend for you time!
You're welcome :))
Helping others proceed, learn, and grow is a great way to give back. Thanks for sharing your experiences.
Thank You!
Wow man! This just gave me a burst of motivation and served as an example that nothing is impossible.
Thanks for the write-up.
Nothing is impossible!
@chbartist
Thanks for writting such a nice blog ...
!!! I have also read your blog on first big mistake...!!
Today's blog takes me back to my past and thinking on similar lines...!!!
Please continue this series and keep writting more ☺️
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Thank you for read!
Hola @chbartist the most important thing is that you realized what the problem was that finances were, and you focused on how to solve it and if you have to master the emotions in order to see the light and be able to solve the situation.
Exactly friend!
Thank you @Chbartist. You are my inspiration and momentum at this moment.
Thnx for sharing this blog
It's a very touching and educative story, very few will act maturely and wisely like you did. I think it will be complete if you tell us how accumulated up to $1million in debts.
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The complaints are negative. The complaints help you to sink. It is better to thanks. Success.
Hi @chbartist!
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@chbartist I really love reading your post. It's very educational and inspiring. And, you're right! Instead of complaining, you should always seek a solution to every problems or challenges. In that way you will be able to stand on your own two feet again. Remember this saying "If there's a will there's a way!". It's just a matter of a willful heart and a proper mindset.
Our purpose in life will take us back when rough times move us.
That's ok @chbartist! We tend to make mistakes no matter how cautious we are. But, what's more important is we learn from it and start anew.