- Squid Game is a Korean television drama released on Netflix that takes us through a journey of people stuck in the debt crisis, desperate to do anything to get out of it.
- The web series has some personal finance lessons to be learnt for the middle class, who strictly need to follow financial discipline to avert any monetary crisis.
The covid-19 pandemic has triggered many changes like work from home for many organisations, which was not possible a few years back. The pandemic period also impacted the movie industry as theatres and cinema halls remained closed to curb the spread of coronavirus. It was the period when TV shows and movies released on online platforms became the major source of entertainment. While, gradually, theatres are reopening, and people are thronging back to watch the latest releases. Still there are many shows and series that are being binge-watched by people. One such television show released in September 2021 on Netflix is Squid Game, a Korean television drama.
The eight-hour-long series, spread across nine- episodes, takes us through a journey of people stuck in the debt crisis, desperate to do anything to get out of it. The web series has received a good response and has turned out to be the biggest debut hit on Netflix.
3 important investment lessons to learn from Netflix's ‘Squid Game’
The story, which depicts the inherent desperation to survive, fighting to death is based on commonly played South Korean games of children. Participants enter six-round elimination games, with a single winner taking home 46.5 billion won as price money. However, the central part of the story shows the consequences of the high amount of household debt taken by the middle/lower classes, who cannot payback.
The debt crisis is a major problem across developing and emerging economies and amongst different classes. While the series is being widely appreciated across the globe for its plot, it has some personal finance lessons to be learnt for the middle class, who strictly need to follow financial discipline to avert any monetary crisis.
Here are some of the worthy lessons from the squid game show:
Get-rich-quick attitude can lead to downfall
In the opening episode, the show’s central character can be seen gambling on horse racing by stealing money from his mother’s bank account. People should avoid gambling and other immoral activities, as these get rich quick attitude can push the individual into the debt trap. Instead, one should save part of their regular income and invest wisely in quality stocks or funds to generate capital that can be used later to pay off debt or can be used as an emergency fund.
Focus on paying off your debt
The central character of the Squid Game, Seong Gi-hun could have easily paid off his debt through his job as a driver, but instead, he prioritised other things and spent on them. Once you take debt, paying off that debt should always be on top of your priority list. It is very difficult to achieve financial well-being if one has taken a lot of debt and is under financial burden.
Diversify your investment
In one of the six rounds, the team divides themselves to win the contest and survive the elimination. A similar lesson is applicable in investment as well. One should diversify portfolio rather than putting all their money in one stock or single asset class. Investors should include debt and equity asset class as part of their portfolio and should invest regularly and have a long-term investment horizon.