Acharya Prashant explains that fear arises from our dependency on the world and the constant thought that something we possess will be taken away. He asserts that fear is the anticipation of loss, and since we have borrowed everything from the world, it must eventually be returned. To overcome fear, one must settle their debts, reduce their needs, and recognize what is originally and rightfully theirs. He emphasizes that the more one asks from others, the more they grant others the right to interfere in their lives. Therefore, reducing dependencies and managing on one's own is the path to freedom from terror. Regarding happiness, Acharya Prashant clarifies that it is not something to be obtained from external sources like parties, shopping malls, or social gatherings. He describes real happiness as a natural state that exists when one is free from the 'infantile rubbish' of societal teachings and media influence. He compares happiness to health, noting that health is simply the absence of disease rather than something one searches for. True happiness is found in the act of giving up what makes one heavy, dull, or frustrated. It is not a tangible object to be found but the freedom that remains when false hopes and burdens are discarded.