What GOT taught us about money, finance, and investing

Moving over bulls and bears, let’s see what dragons and direwolves can teach us about finance and investing! For, “Summer will end soon enough, and childhood as well.”

Publish Date: April 30th, 2019

By: Sandhya Kannan, Head – Content

Dear Millennials, we know that adulting is a serious affair, but, is living from paycheck to paycheck the best option?

“Here and now, with winter soon upon us, that is a different matter. It is time to begin growing up.”

This is why we say, invest, rather than simply save. Make your goals and work towards achieving them. Seems too cumbersome?

In the world of Game Of Thrones, winters are long and hard and only mean hardship and threat to the folks of the Seven Kingdoms from the lack of food, resources and their life. This winter that brings more of a speculative agony translates in the real world to a time when misfortune could befall the best of us humans.

"They are only numbers. Numbers on paper; once you understand that... it's easy to make them behave."

Perhaps, our passionate advocacy to make your finances better, today, would help you to not worry about many-a winters to come. Our real-world insights and investment tips for you are all derived from the lessons this magnum opus of a series has taught us which we think you could relate to and probably adapt as a best practice for your future.

So, let’s now dive into the lessons we learnt from the fictional economy of Westeros.
[Spoilers ahead! But only if you have been living under a rock]

Here’s how to begin planning for your future:

Investment Tip #1: Calm as still water

Everything in the GOT series is driven by animal spirits, as are the stock markets.

For example, in the series, Robb Stark wins battles after battles against the mighty Lannisters and gets really close to avenging his father’s death. And then, he goes and lets himself get carried away with animal spirits— He let his heart make decisions for him. He married Talisa Maegyr at the cost of his deal with House Frey.

And, what happened? The Red Wedding. He lost his head (literally), and the war.

What is the lesson for us?

Keep sentiments out of the door. Many a time, markets can be driven by sentiments, and investor behaviour during the ups and downs of the market is very important to reap benefits from your investment. So, keep your animal spirits in check!

Spontaneity, impulsiveness, and making foolhardy decisions without paying heed to the repercussions is something one should certainly avoid when trading in the markets.

Mind the fact that — “The heart lies and the head plays tricks with us, but the eyes see true.”

So, keep calm, be patient, and you will reap rewards.

Investment Tip #2: I’ve seen it in the fire

Here comes the story of Stannis Baratheon, who was the rightful heir to the throne after the untimely death of Robert Baratheon. Though he was believed to be a man of integrity, he chose to believe in prophecies and promises, made by the red priestess Melisandre in the name of the Lord of Fire. And then, he fell.

Let’s understand this— markets are not a game or a result of luck but they involve carefully avoiding speculation and always doing your research.

Why would you want to believe in spurious tips given by unknown sources claiming to be experts? Banking on the so-called ‘expert opinion’ by these unknown parties will only result in you being in a soup.

With the markets, the outcome is usually unknown “For the night is dark and full of terrors.”

We recommend that you help yourself, at all times, and be focused on a singular goal and not get distracted, after all, “A man who won't listen can't hear.”

Here’s where you can learn to understand the market terms before you start investing.

Investment Tip #3: A Lannister always pays his debts

Loans are as easy to get these days as online shopping. Credit Cards allocate limits that could help you touch the sky if you’d wish to. But then, who will pay the bills?

Debt is a vicious vortex, very easy to get into, very difficult to come out of. It could eat away your income faster than you can say Lannister.

On the other hand, being debt-free can provide financial freedom.

Why live beyond your means? Earn money to achieve your life goals and not to show off your wealth to the world. “A lion doesn't concern itself with the opinion of sheep.” after all.

What we say: Don’t live beyond your means as this makes it hard to achieve your goals. Debts make you lose your grip on your finances. Stop while it’s still early.

Investment Tip #4: Tell me again what you saved

Good things come to those who wait. And, wait she did.

Of all the characters in the series, we noticed that with time the only one who grew by the day was Daenerys. One day she had 3 dragons, a fortnight later she had an army, and then she had ships and a skilled advisor.

This is the result of patience and perseverance.

She took her adversity and little means and grew them into a fortune with careful steps and logical reasoning.

When you invest, say this to yourself— “My mind is my weapon,” because you’re the only one who can succeed in making the right investments for yourself.

As long as you know you’re in control of the situation, even if you’re in a position of loss, you’ll be able to make the best out of it.

Investment Tip #5: When you play the Game of Thrones, you win or you die

Assuming that if you’ve reached this far into the blog, you are obviously interested in investing.

Let us understand that investing has another side, popularly known as— Risk

Risk is inevitable when it comes to investing. What one needs to understand is his “Risk Appetite.” This is very unique to every individual.

A risk appetite is what you consider while putting together your portfolio as per how much risk you’re willing to take to grow your funds and reach your goals.

Doing nothing with your savings will not help; so, invest as per your risk appetite. In a developing country like India, inflation is directly proportional to the growth; thus, investors need to be careful and consider all factors in addition to their risk appetite before making investments.

“Every hurt is a lesson, and every lesson makes you better.” So at the risk of probably losing some and gaining some, you’ll learn to balance your portfolio and investments.

Learn how to manage to stay afloat even in volatile markets

Investment Tip #6: Winter Is Coming

When comes the winter, there come the White Walkers. In the world of stock markets, any adverse condition is our winter.

The message we’re trying to send here is pretty clear— protect your assets.
Apart from getting insurance to ensure the financial safety for your family, it is important to have enough funds in good financial instruments, lest winter comes.

You’re young, you’re healthy, you have a good job, then what could ever happen for you to need to be prepared?

“The common people pray for rain, healthy children, and a summer that never ends." But, smarter people know that the future is unknown, as unknown as the dark night.

From health issues, losses in your business, financial crisis, a natural disaster, unemployment, disability or even untimely death, there could be just anything that could arrive at your doorstep.

When, if ever these problems arrive, make sure you are prepared. We would like to call this investment an “emergency fund.” What do you need to do? Make sure you build on the right foundations when it comes to your finances; ensure your assets are well-diversified.

Understand how to create a financial plan considering all eventualities

Investment Tip #7: Choose. Fly or die.

Valar Morgulis. So, we say you must choose to fly. In a nutshell, we insist that you start investing today while it is still early. But remember, putting your trust in the wrong broker can cost you your whole life’s savings.

“Is it so far from madness to wisdom?"

Yes, it is, for you must be sane and make the right choice, as this is your future we’re talking about, and it is not to be taken lightly.

Ready to take the plunge? Scared to take the first step?

In the words of the nobleman Eddard Stark in an answer to his son Brandon Stark
“Can a man still be brave if he’s afraid?”

“That is the only time a man can be brave”

The time is ripe to invest, start with opening a DEMAT account

Conclusion:

"The Long Night is coming, and the dead come with it."

Will they thwart the army of the dead in the upcoming season 8?

Who knows what the future will bring? A recession or an economic boost?

While India is one of the fastest growing economies, the future is as uncertain as ever. So, hold the door! Invest wisely and be prepared for the winter that may come!

Also read:  

• Morning Capsule: Your pre-market news update
• Get familiar with Stock Market concepts
• Documents you need to open a DEMAT account
• Who needs financial planning?
• Indian TV’s rules of Engagement