5 Financial Lessons From Watching Squid Game
Unless you’re living under a rock, chances are that you would have heard of or watched the popular Korean Drama Squid Game. This Netflix original production quickly rose to the number one most popular show in the United States and also in Singapore.
This drama of a survival-thriller genre tells the story of 456 people who partake in children’s game competitions that are popular in Korea. Contestants risk their lives for an opportunity to win 45.6 billion Korean won.
Besides keeping us on tenterhooks, there are also 5 financial lessons we can learn from watching Squid Game.
1. Don’t put all your eggs in one basket
“Don’t put all your eggs in one basket”, Cho Sang-woo said to the team in one of the games. Indeed, this sentence holds true especially in the investment context. By diversifying the “eggs” in your basket, the goal is to reduce risk. Diversification helps you not to put all your eggs into one basket, ensuring that your investment portfolio contains a variety of assets. Most successful investors diversify their portfolio to balance the highs and lows of the market.
Learn more about the 4 basic rules of investing in your 20s.
2. It’s important to manage your finances
In order to repay their debts, 456 people risked their lives just to earn the cash prize. This reinforces the importance of financial management. You should always plan ahead so you are not left in a dire financial situation.
Prior to applying for any loans, you should think about the following questions:
- Can I afford the monthly payment?
- How much would I have to repay with the interest incurred?
- How long will I have to pay it back?
- Do I have a good enough credit score?
- What other options do I have?
If you are currently in debt, fret not. We have some quick and powerful tips to clear your debt quickly, so you can become (bad) debt-free!
3. Insurance is crucial in financial planning
In Squid Game, the male protagonist Seong Gi-Hun’s mother fell sick but was unable to undergo treatment due to her son cancelling their medical insurance and spending all the money on gambling.
With healthcare being so expensive in Singapore, it would be wise to invest in insurance policies to safeguard your future. Insurance contracts provide you with a sum of money in the event of an unfortunate situation, in exchange for smaller sums paid before it occurs, called premiums.
Not sure how much to set aside for your insurance? This calculator helps you to figure out the total insurance coverage you need, and whether you’re adequately insured.
4. Gambling is never a reliable source of income
Gambling is a dangerous addiction that can ruin lives and break families apart, as vividly depicted in Squid Game.
Gambling addict Seong Gi-Hun spent his mother’s money gambling on horse races, with blind optimism of doubling his capital. Eventually, he loses everything since gambling is not a sure-win.
There is a fine line to tread between gambling and investing, and you can make sure you are on the right side of it by doing your research. Investment risk can be reduced if you take a well-calculated call and avoid getting carried away by fear and greed.
Here are 5 lessons we have learnt from investing in the time of the coronavirus pandemic.
5. Life is a journey, not a race
As cliché as it sounds, life is not a race.
A case in point would be Cho Sang-woo, who grew up in the same neighbourhood as Seong Gi-Hun, but graduated from a prestigious university and landed a good job. However, due to misappropriation of company funds, Sang-woo finds himself in hot water and eventually takes part in the secret survival game with Seong Gi-Hun. While Sang-woo was initially ahead in the rat race, he made bad financial decisions that led him to his plight.
Furthermore, the first two games in the Squid Game showed us that it doesn’t matter if you are slow. Sometimes, slow and steady wins the race, and being slow like Old Man Il-nam doesn’t mean that you are the weakest link.
Similarly, that theory applies when it comes to your financial planning. You’ve probably heard of people talking about saving $100k by the age of 30, but sometimes you have to go at your own pace. If you’ve yet to hit that coveted amount, the good news is that it’s never too late to start. Why not take baby steps towards achieving your goals, by starting with budgeting? Download the Planner Bee app today — The simplest way to manage your banking, savings and investments. By the way, you can set goals and track your progress too!
Moral of the Story
The choices you make today define your tomorrow.
Time and tide wait for no man — start investing in yourself today so you will never have to go down the same rabbit hole as Seong Gi-Hun.
While money is not everything, we cannot stress the importance of financial planning enough. Manage your money better, stay up to date with the latest financial news, and learn how to be more financially savvy with Planner Bee.
*Images from https://wallpaperaccess.com/squid-game
Originally published at https://plannerbee.co on October 9, 2021.
