I bet many of you have watched the Lord of the Rings. Some of us have watched more than once.
Not surprisingly, I have watched numerous times on DVDs and yet I am not tired of watching.
The movie has won numerous awards from Best Director, Best Picture and Best Supporting actor just to name a few.
[image credit: www.lotr.wikia.com]
Do you know that there are some valuable lessons on personal finances that you can take away from the movie?
Let me share with you 5 things Lord of The Rings teach us about personal finances.
1) You Must Have A Clear Purpose Or Goal
In the movie, Frodo Baggins was tasked to be the ring bearer. He knew exactly what he has to do. He is crystal clear about his goal – To destroy the ring at Mount Mordo so he can save the earth from being ruled by evil forces.
“Clarity is power”.
So says Anthony Robbins in this simple but yet powerful quote. It is very true that in order to be successful, you must be clear in what you want to achieve and be clear about your goals.
What is your financial goal?
Is it to just generate $10,000 passive income per year or clear off your debt in specific number of years? Once you have clearly identified your goals, you will be able to have a direction and find the strategy to achieve it.
If your purpose or goal is unclear, you will be like a headless chicken running in all directions. A person with no purpose or goals will lack motivation to continue what he or she is doing when the going gets tough.
2) You Need A Strong Support and Network
[image credit: www.pixabay.com]
Throughout the journey to Mount Mordor, Frodo was helped by group of Elves and some warriors to fight against the Orcs. At one time, when the fellowship was broken, Frodo was supported by Samwise, who was protecting him, fighting alongside with him and encouraging him all the way to Mount Mordo.
Do you think Frodo would have completed the journey if not for Samwise? I am sure Frodo would have given up after facing few personal battles with the dark side, particularly cunning Gollum.
Very often, it is not easy to achieve a financial goal by yourself. I am not saying you will not succeed being alone but it will take longer. Some may choose to give up along the way.
Whether you are investing to achieve your financial goals or clearing off your debts, it is always good to network with a group of people sharing the common goals to support and motivate one another.
There is a saying, that “Your networth is your network”. It is not how many people you know but who you know. The journey will not be lonely if you have people helping along the way.
3) Be Prepared for Twists and Turns
When Frodo Baggins embarked on the journey to Mount Mordor, he faced many struggles and unexpected challenges. He has to walk through thick forest filled with dangers, crossed mountain that was chilling cold and fight off enemies that were looking to destroy him.
The giant spider that webbed him was one of unexpected challenges he has to face.
Likewise, the road to achieve your financial goals is never an easy one. If it is easy, all of us would have taken the same route.
Take for example investing, the stock market is unpredictable. From 1990 to 2015, we have witnessed many crises that an investor has to overcome.
To be successful, you must be prepared to work hard, shed tears and bite the bullet to go through the challenges ahead.
4) Having Adqueate Protection
In The Twin Towers, the fortress guarding Helm’s Deep becomes the refuge of the main army of the Rohirrim, under King Théoden during the War of the Ring. The fortress was said that to be invulnerable.
This was tested during the Battle of the Hornburg, as a massive army of Uruk-hai sent by Saruman almost overwhelmed the defenses of the Rohirrim. Saruman’s orcs used an explosive blast of fire within the culvert which, when detonated, breached the long Deeping Wall.
From this, we can learn no matter how healthy and wealthy we are, we must acknowledge that we are still vulnerable to unexpected accidents or challenges. To protect ourselves from these vulnerabilities, it is a must to have insurance.
Insurance is not for wealth accumulation but for wealth protection. The basic insurance one should have is Hospitalization plan, Personal Accident plan and a Term-Life plan.
Having adequate insurance protection allows you to have a peace of mind when unexpected events struck and your loves one will be well taken care of.
5) Greed will Haunt and Destroy You
Smeagol was a just a river folk living a normal lives. When his friend, Deagol found the ring, Smeagol wanted the ring and strangled his friend in order to acquire it.
Smeagol was banished into the mountains and extended his lifespan where he was then transformed to a corrupted Gollum.
When Frodo Baggins was at Mount Mordo, he was tempted by the power of the ring. Greed overcame him when he said “The ring is mine!”
Fortunately, Gollum intervened and the Frodo managed to wake up and destroy the ring.
[image credits: www.craveonline.com]
In recent times, we have seen articles on how people lost their money through investment like wine, overseas property and gold.
Why do these things happen?
It may be the blinding promise of high returns that brought about irrational and impulse decisions.
Watching a great movie is an enjoyment but the movie becomes all the more valuable if you can take away important lessons and apply it in our lives.