8 Personal Finance Teachings from the Game of Thrones
When we talk about inspiration for wealth management and investment planning, popular fantasy books and TV series are not the first things that come to mind. However, whether we realize it or not, some of them contain powerful financial wisdom and can guide us through the nitty-gritties of comprehensive financial planning.
Take the incredibly popular “Game of Thrones (A Song of Ice and Fire)” — Here are 8 financial lessons you could learn from George R.R. Martin’s masterpiece:
1. Everything you care about will die
The blood-and-gore masterpiece takes this concept very seriously by killing off popular characters, but there is an important financial (and life) lesson there. Bad things can happen with no warning and often for no logical reason.
You may not be beheaded for treason, but you could have an accident, lose your job, or face any number of other unexpected blows. When it comes to handling the financial impact of these events, the smartest thing to do is to be prepared for any eventuality, in the form of accessible investments or an emergency fund.
2. You can’t buy loyalty
As the disgraced Ser Jorah Mormont could testify, money isn’t everything. His wife left him when he ran out of it, and you could learn a very important lesson from his misery. How does this translate into personal finance planning?
Don’t assume that buying expensive gifts for your spouse or children will make up for not being there for them. We’re not saying that they’ll sue you for neglect, but real and meaningful relationships you’ve nurtured will translate into a helping hand if you’re every knocked down, financially or otherwise.
3. Money solves a lot of problems
This may seem contradictory to the previous statement, but you can’t survive on love and loyalty alone. Like Peter Baelish and his betrayal of Eddard Stark, you’ll find that accumulated dollars can help you achieve a personal goal or see you through a financial emergency.
Saving or investing your money only makes sense, whether it’s in a fictional world or the tumultuous one we live in. Market ups-and-downs, downsizing at the workplace, business failures, home repairs and medical treatments become more manageable with a bit of spare cash.
4. Listen for weak signals
In the fantasy epic, the rulers of kingdoms in Westeros are so focused on their intrigues that they completely ignore the signs of great trouble to come, including zombie-like White Walkers, Daenerys Targaryen’s army, and fire-breathing dragons!
The lesson here is to stay aware of changes around you, and remain open to the big picture. Whether its private investment management or retirement planning, look out for warning signs of economic distress, business calamities and anything else that could affect your goals.
5. Make dispassionate decisions.
Robb Stark’s decision to go back on his promise (to marry a powerful ally’s daughter in return for assistance) because he fell in love, was one that cost him his life and got his loved ones killed too.
When emotions become part of your financial plans, you may end up in less trouble than that, but the negative impact could be huge. It’s always best to make financial decisions with a cool head, after thinking through all the possible outcomes and remaining focused on your goals.
6. Leverage what you have.
Much as we hate Viserys Targaryen, he shows us that even a powerful family name can be leveraged into gains. His sister Daenerys does the same, but she also has three dragons in addition to her lineage, which she combines into a force that gains her an army.
Of course, Viserys is killed as a result of his greed, so that’s one lesson right there, but the more important one is that you should make the most of any assets that you have. If you’re smart, you can leverage them into greater gains.
7. Too much debt is a killer
Cersei Lannister’s assertion that ‘an unhappy wife is a wine merchant’s best friend’ holds a lot of truth. When we’re unhappy, we tend to indulge in ‘retail therapy’, thanks to the credit extended to us by banks and financial institutions.
Also, the Iron Throne is heavily in debt to the Iron Bank of Braavos, which shifts power to these bankers on a subtle level. The same analogy applies to real life, since the more debt you pile up, the more you’ll be working just to pay it off, making your financial power shift to your creditors (often literally, with foreclosures and such).
8. Hard assets matter.
Like the Lannisters and Tyrells, two of the wealthiest families in Westeros, real estate and other hard assets can make a huge difference to your wealth. Land, in particular, is always in demand and the price will only keep going up over the years.
What’s the lesson here? Asset and wealth management experts suggest that the key to great financial planning is a combination of hard assets, savings and investments, which can weather market downfalls and any other scenarios better than a single financial product ever can.
