Season 7 popular TV show “Game of Thrones” has just concluded. Fans of the show are still coping up with the fact that they have to wait for two years, this time can be utilised for learning financial lessons from the show.
Yes, you read it right. Game of Thrones can teach you a lot about managing your finances.
Consider this “throne” as your financial goal. The goals which you need to achieve over a period of time.
Here are five financial tips:
1. Pay your debt:
If you have been following the show, one thing which House Lannister believes is “A Lannister always pay his debts”.
Financial lesson: Always pay back your debts without any delay. In today’s time, taking loans from bank has become a necessity simply because owing anything without bank’s help is always out of budget. Whether to buy a car, home or opt for higher studies, you are piled with multiple loans.
The thing to remember here is do not borrow huge amount which is out of your budget. Once you took the loan, do pay its monthly EMIs without fail.
2. Trust worthy financial adviser:
In the show, you can see a lot of betrayals, whether it is by family members or friends. Every character backstabs the other character simply to sit on the “throne”.
Financial lesson: Make sure your financial adviser does not betray you. While investing or buying a property, every individual tend to take advice from someone who is an expert in that segment.
What needs to keep in mind is that adviser should be trustworthy. For instance, take a case of mutual funds. What makes this financial instrument special is that your invested money is managed by an expert. However, this could become your nightmare if that adviser is not aware about the funds.
3. Women are better finance managers:
Whether it is Cersei Lannister or Darnerys Targaryen, women plans for the future and ready for any emergency situation.
Financial lesson: Women are better money managers simply because they are more inclined towards saving money. With the saving habit you are more secured and ready to face any kind of emergencies where money is required. This way you are balancing the risk factor.
Apart from saving, you should now also look at growing money by investing it into financial instruments. This way, they you will be able to earn regular returns too.
4. Be ready with emergency funds:
Like in the show, you never know when you have to leave your “house” like Starks had to in the first season or told to leave the “house”. In both the cases, you have to be prepared.
Financial lesson: You never know about the future and nobody can predict it until and unless you are Bran Stark (a character who can see future). To be on safer side, start building your emergency fund.
Although there is no specific amount that one should be save as an emergency or a contingency fund, one has to factor in personal needs and family circumstances before arriving at a number.
This number (cash in hand, liquid funds like bank account) must include your average essential monthly expenses, such as EMI/rent, school fees, food and essentials, etc.
5. Health insurance or disability insurance:
If you are a Game of Thrones fan, when you read the word “disability” two people for sure comes to your mind “Bran Stark and Jamie Lannister”.
Financial lesson: Though in India, disability insurance is less heard of, but life insurancecould be an option. Make sure you have one because life insurance policies do covers “accident policy” which compensate you in an event where you become disabled and are no longer able to earn.
So, next time you watch any Game of Thrones episode, do notice any financial tip and use it for your own benefit!