Game of Thrones (GOT) season 8 is here and like all other GOT fans, I am happy and sad at the same moment. Sad, because this will be the last season. Nonetheless, there are important lessons from GOT that are invaluable to a lot of fields in life. Today, let us have a look at some of the financial lessons from GOT.
1. Always pay your debts
“A Lannister always pays his debts”. No matter how much you hate the Lannisters, you can’t deny the value of always paying your debt. It makes sense to have a good credit history, after all, you never know when you might need to borrow. Having a good and clean credit history makes it easier to borrow at a low interest rate.
Also, you may have heard that “The Iron Bank will have its due”. When Cersei Lannister takes over the Iron Throne, she also inherits a debt of 6 million golden dragons. Tywin warns Cersei that she should pay back the money to Iron Bank else she will crumble. Of course, Cersei obliges (who wanted to cross paths with Tywin).
Similarly, you should pay your debt on time. Else your credit scores will go for a toss or worse your creditors may sue you for the money.
2. Save / Invest for the future
“Winter is coming”, is a saying from the great House Stark. What it signifies is that one must always be ready for the future hardships. In Game of Thrones, the North stocked up for the cold and harsh winters. Similarly, you should always maintain a good buffer of funds for an unplanned hardship.
3. Changing financial loyalties might be for the best
Tyrion Lannister had been under the Lannister banner, irrespective of the years of abuse and taunts he suffered. But he realised that switching sides to long time enemy, “The Targaryens”, is in his favour. And look, where he is now, the hand of the queen.
Similarly, just because you have relationship with a bank does not mean that you have to stick with the same bank. You should look at other options available that might offer you lower interest rate on debt or other benefits.
However, be cautious in your decision making. Just because a mutual fund scheme has given you lower returns recently, is not a good enough reason in itself to switch. See my post on when to withdraw from mutual funds.
All in all, GOT is a great source of valuable life lessons. I hope this particular post on personal finance was valuable to you. Please provide comments below.