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Indian television’s biggest game reality show ‘Kaun Banega Crorepati’ has returned with its 10th season (and host Amitabh Bachchan) to win hearts of the audiences yet again. Like much of television-obsessed India, you must’ve watched this show with great interest. But if you’ve followed KBC long enough, you will realise that it offers a lot of financial wisdom that can be applied to the real world of investing and finance.
Here are some financial lessons to learn from this game show:
Set Goals to Create a Compelling Future
The first thing that Mr Bachaan asks the contestants is, “If you win, what are the specific goals that you would like to fulfil?” He wants to know what your dreams in life are and a vision of who or what you would like to be in the future.
Lesson to Learn:
Having goals is the key to success in life as setting goals help us expand and grow and pushes us to transform in ways that, just maybe, we never imagined. So, here are few takeaways:
- Set your goals according to your interests, knowledge and future needs; be it starting your business, buying a house or planning for retirement
- Set realistic goals considering your financial life, and risk appetite and choose the right investments to achieve them
Don’t Be Greedy
When players get into more than Rs 25 lakhs range, they suddenly think that they are invincible. They are willing to take risks because they see the holy grail of winning crores and think that nothing else is worth it. Well, Rs 25 lakhs, Rs 50 lakhs are all huge amounts, and sometimes it’s better to know when to walk away rather than risking it all and falling back to just Rs 6.4 lakhs.
Lesson to Learn:
Every financial investment comes with a certain amount of risk, but people sometimes make irrational decisions in the short-term to earn quick money. Though investing money and reaping fruitful returns is a game of patience and perseverance, not knowing when to get out of losing investments is often a mistake committed by many. Therefore, it’s better to take what you can get rather than going over the top. Because a 9 percent yield in a year is great, rather than risking too much for trying to get to 15 percent. One of the most important Financial Lessons.
Learn to Ask for Help
Contestants are given different lifelines in KBC, but it all depends on how judiciously they use every one of it. As sometimes a wrong choice can be fatal. When in doubt lookout to others around you for Financial Lessons.
Let’s connect the lifelines to important financial takeaways:
- Phone a Friend In KBC, you call your most trusted friend to help you with the right answer. However, when it comes to investing, ask yourself “Is my friend a financial expert?” Financial decisions that suit your friend, especially investment ones, may not necessarily suit your goals. Therefore, it’s vital to take the expert’s help while making important financial decisions.
- Audience Poll: This is with respect to following the herd mentality, which investors follow very often in equity markets.
- Double Dip: Thought, sometimes in investing luck may favour you, it will not repeat the same every time. As far as investments are concerned, always take decisions considering your risk-appetite, never leaving anything to chance.
- Expert Advice: Though expert’s advice is freely available in KBC, it’s not always the case in real life. Pankaj Pachuri (expert on KBC) helped Sushil Kumar win 1 crore. But a wrong advice would have cost Sushil Kumar Rs 48.4 lakhs (losing 95 percent of his money)
Every Element of Financial Planning is Important
It’s not possible for a contestant to give one wrong answer and still win the Jackpot. Similarly, it’s not possible for a person to be good only at one aspect of finance and have a successful financial life.
Lesson to Learn:
One should be good at all parts including, budgeting, investment, taxation, and most importantly insurance (read term insurance).
Sufi Nawaz
Do You Really Need a Term Plan?
You may think of term insurance as just another expense. However, the question you need to consider is, “Would your loved ones suffer economic hardship if you were to pass away unexpectedly?” If your answer is ‘Yes’, then ‘Term Plan’ is important for you to have. One of the most important Financial Lessons is to have a term plan early in life.
What is term insurance? Term insurance is the cheapest form of life insurance that provides financial coverage for your family in case of untoward situations like disability or death. Some reasons why having a term plan is a necessity and not an option:
- Provides for your kids in your absence
- Helps your dear ones to maintain their current lifestyle
- Takes care of your outstanding debts
- Protects your business
So, next time you watch Kaun Banega Crorepati, do notice these financial tips and use them for your own benefit !
