Personal Finance Lessons From Bollywood

A thing or two can also be gleaned from Bollywood movies about personal finance.

Personal Finance Lessons From Bollywood
Personal Finance Lessons From Bollywood
Deepika Asthana - 15 May 2020

Bollywood and cricket, not necessarily in that order, are the two passions of Indians. Give us a good cricket match or a wholesome Bollywood entertainer and we are well set. Now, Bollywood is a vast industry generating scores of movies every year. Pot boilers, mysteries, family entertainers, romcoms and multiple other genres are belted out by this reigning industry. Interestingly, a thing or two can also be gleaned from Bollywood movies about personal finance. Some of these are discussed below.

Khosla ka Ghosla: Underscores the importance of diversification

In the movie, Anupam Kher’s character invests all his money in a plot of land. When the local goon usurps his plot of land, Anupam Kher’s character risks losing all his money. This underscores the importance of diversification. Had he diversified his investments across multiple asset classes, then the adverse circumstances in one asset class, in this case the real estate that he had bought, would not had such a severe impact on his portfolio.

Chak De: Discipline is the key to achieving one’s goals

A fabulous movie about India’s ascent in the field of international women’s hockey highlights the importance of discipline in any field. In the movie, the team along with coach had to face multiple trials. However, by staying committed to the goal, creating a strategy and then staying committed to the strategy, they were able to achieve their goal. Personal finance is similar in nature. Markets can be volatile and our investment journey can be peppered with multiple twists and turns. However, it is important to create an optimal asset allocation strategy and then adhere to the same in a disciplined manner in order to achieve our financial goals.

Baghban: The importance of retirement planning

There really is no better movie to highlight the importance of retirement planning. In the movie, Amitabh Bachchan’s character has been employed throughout his working life. During his income generating years, he has earned substantial amount of money and met the financial goals of his family be it children’s education or marriage. However, he did not save any money for his retirement years, relying on the assumption that his children will take care of him. When his children did not really step up, both he and his life had to make significant compromises post his retirement. His travails could have been averted if he had simply created an investment plan specifically earmarked for his retirement years. That way, he would have had enough money to lead a comfortable retired life without having to depend on any one.

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