One of my hobbies when there are long breaks is watching K-dramas.
Although I watch these shows primarily for entertainment, some shows have important money lessons that are worth sharing given their relevance to Filipinos.
Invest your windfall gains. What will you do if you receive a huge windfall, such as a large inheritance, a large insurance product, or if you win the lottery? If you follow your instincts, you will most likely buy beautiful and expensive things like designer items, jewelry, a fancy car, or a big house. After all, owning these things will make you feel good, allowing you to brag about your best position in life.
While there’s nothing wrong with buying nice things, remember that most of these things lose value over time. If all you do with your windfall is buy things that get cheaper over time, then everything you own will eventually become worthless and your financial situation will go back to what it was before you got your exceptional gain.
In addition to paying off your debts, prioritize investments when you get a windfall gain, as this will kick-start the growth of your financial resources, which will benefit you in the future when it matters most.
In K-drama Itaewon Class, main character Park Sae-Ro-yi invested the insurance money he received when his father died in the stock market. This decision ended up paying off. Although he was imprisoned for several years and did not have much income, the significant growth in the value of his investments allowed him to buy a building when his much wealthier enemy, the chairman of Jangga Co., tried to frustrate it by buying up the property where his successful DanBam pub was located.
Buy stocks in a crisis. One of the reasons for the significant increase in the value of Park Sae-Ro-yi’s investment in Itaewon Class was his decision to purchase shares of well-run Jangga Co. eight years earlier when it had been sold due to a scandal involving the president. son, GeunWon. Although the company’s image was tarnished, SaeRoyi said he bought the stock anyway because “its core values were the same”. This is the reason why Jangga’s stock price rebounded in the long term, allowing Sae-Ro-yi to make a handsome profit.
Asset prices (including stocks) only become cheap in times of crisis. That’s why I think now is a good time to buy stocks, especially if you have money you can hold on to for the long term. As I have said many times before, many companies on the Philippine Stock Exchange are now trading at very cheap valuations, with some even trading below the net book value of their assets. Although no one knows when the COVID-19 pandemic will end, it won’t last forever. When conditions normalize, stocks of well-managed companies will no longer be cheap and investors who had the courage to buy stocks today will be amply rewarded.
Working for someone can be more lucrative than starting a business. Many Filipinos dream of starting a business, especially if they are smart or talented, because they want the prestige of owning a business and believe they will earn more than just working for someone else.
However, being smart or talented does not automatically guarantee success in business. Starting a business also comes with a lot of responsibilities that you might not want to take on. It’s also normal for businesses to lose money early on and if your pockets aren’t deep enough, you could run out of capital before your business becomes profitable. For this reason, it can sometimes be better to work for a large company that already has the infrastructure that will allow you to maximize the value of your skills and will pay you well to help the company grow.
When one of K-drama startup Kim Yong-san’s programmers asked successful venture capitalist Han Ji-pyeong if his team should accept a job offer for Cheong Myeong’s company instead of creating his own company, Han said, “If you’re passionate about writing programs and seeing them work, work for a company that pays you well.” If you are enthusiastic about starting and running a business, then run your own business. »
Risk management is very important. A good education and access to capital improve the chances of success. That’s why people think that graduates of top universities from wealthy families have the upper hand. However, risk management is just as important. After all, access to capital is a double-edged sword that can cost someone a lot of money. Many rich people become poor because of risky investments that have gone sour.
In the K-drama Squid Game, Cho Sang-woo (player 218) was not the type of person one would expect to join the games. After all, he was on the “most likely to succeed” list, graduating at the top of his class from Seoul National University. He also had a good job, working as a supervisor in an investment company. However, due to bad investments in high-risk derivatives, he ended up in debt of 6 billion won ($5 million) and was being hunted down by the police for embezzlement, falsifying private documents and others. financial crimes.
If Sang-woo had managed his risk better by making smaller bets and cutting his losses sooner, he wouldn’t have lost such a large sum. He also probably wouldn’t have to cheat his clients out of desperation to recoup his losses.
The best gift you can give your children is to take care of yourself. Because we love our children, we do our best to give them the best of everything. For example, we enroll them in the best schools we can afford and buy them the latest high-end cell phones and laptops. Sometimes we do this to the point of sacrificing our own needs, such as delaying important medical procedures, not buying insurance, or investing for retirement.
Many of us hope that when we get older, the investments we’ve made in our children will pay off, enabling them to take on well-paying jobs or become successful entrepreneurs. Once that happens, we hope our children will repay us by taking care of us.
Unfortunately, this mindset could lead us to disappointment. Even if our children are doing well, it does not mean that they will take care of us because they will also have their own bills to pay and their families to take care of. In fact, if we keep asking them for favors, they might think we’re a burden and try to avoid us instead.
In the K-drama Home Town Cha-Cha-Cha, 80-year-old Kim Gam-ri needed dental implants because she couldn’t eat a lot of food without pain. However, initially she did not want to impose the procedure because it was too expensive.
When dentist Yoon Hye-jin asked if cost was the issue, she bragged about having a son working as an accountant in Seoul and having a granddaughter studying at Harvard University in America. However, when she called her son for help, he was unable to help her as he had to prioritize his daughter’s expensive school fees.
When main character Hong Du-sik said he would just pay for the procedure because Kim Gam-ri has been selfless all her life to the point of not being able to take care of herself, Dr. Yoon responded by saying Mrs. Gam-ri was selfish because being a good parent means doing what it takes to stay healthy for a long time. INQ
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