Movies are an inseparable part of our entertainment world. Movies can make us laugh, cry, and can make us scared.
But, apart from just entertainment, there are a lot of things which we can learn from movies such as courage from ‘Raazi’, the real meaning of success from ‘3 Idiots’, patriotism from ‘URI’, determination from ‘Mary Kom’ etc. The list is never-ending.
Moreover, movies also teach us many financial lessons. They are very practical and important to implement in real life.
Let’s see below list of movies and personal financial insights,
Learning: Have your own House.
Remember the latest famous movie of Amitabh Bachchan & Ayushman Khurrana? According to me, financial learning from this movie is to have your own house. So that to avoid the problems to be faced by the tenant.
This is true that real estate exposure in your portfolio should be limited. It’s better to avoid buying more than 1 or may two 2 properties. However, you should have your own house. This will create a sense of security.
Learning: Protect your family
Who hasn’t seen this movie? A simple story but yet totally grabs your attention. In this movie, Ajay Devgan does everything he can to protect his family. He is the perfect example of a responsible family man. He is a caring husband & father.
In a financial context, to become responsible for your family, you need to have adequate Life Insurance (Term Plan) & Health Insurance. It is your duty to protect your family and make sure that they can continue to maintain the same standard of living even in case of any mishap. Having adequate insurance will protect your family from financial losses.
Learning: Balancing your emotions is very important in life.
This movie with its crispy dialogs depicts that the management of emotions is very important and it impacts your whole life.
Kareena Kapoor has portrayed the character of a very aggressive girl. She is least bothered about future consequences and takes life casually. On the other hand, Shahid Kapoor’s character is quite reserved and aloof. Initially, both were unable to manage their emotions and hence, ended up in a mess.
If we connect the movie with personal finance, the learning is that emotions can take us away from reality. We shouldn’t take any financial decision without understanding its after-effects. Try to understand the characteristics of an investment product before investing,
That will make your financial journey comfortable.
Learning: Beware of Ponzi schemes
Many fraudsters take advantage of innocent investors and their greed who don’t have adequate knowledge. They make investors invest their money in Ponzi schemes.
In simple terms, a Ponzi scheme is investment fraud. In this, fraudsters do not invest your money but rather use your money for making payments to other investors. And this way the cycle goes on. The most common characteristics of fraud schemes are they usually promise to generate higher returns with little or no risk.
Please remember that investment products with higher returns with no risk don’t exist on this planet.
Take care of your hard-earned money and get help from qualified & experienced finance professionals when it comes to investment.
Learning: Every asset class is important in your portfolio.
In the movie, Tapan Das (Akshay Kumar) creates a National Hockey team and selects players from several regions. Team members like Raghubir Pratap Singh, Himmat Singh, Devang Chaturvedi all were different by nature, but yet played an important role.
In investments also, we have basic 5 asset classes. They are Equity, Debt, Cash, Commodity, and Real estate.
Every asset class is important and has different features. Diversify your portfolio.
Your portfolio is like a ‘Team’ that will win Gold (deliver better returns) if you exactly know when to choose which.
Learning: Plan your retirement in advance rather than depending on anyone else.
This movie is a perfect example of the consequences that we will have to face if we ignore planning for retirement.
In the movie, Amitabh Bachchan spent everything, including the provident fund and on education and other needs of his four sons. But when he retired, he had nothing to back him up, and none of the sons was ready to look after him and his wife.
The movie teaches us a financial lesson that everyone should always plan for retirement instead of relying on children. With the increasing longevity and rising medical expenses, the need to do retirement planning has increased. Consider the inflation factor while planning for retirement. Give the priority to your retirement kitty. This will also make your children financially independent.
Live your life proudly and independently.
Movies are not real. It’s just a story, but there are a lot of financial lessons that can be learned from them which are real, practical as well as logical.