3 films that might teach you something about wealth creation
Where do you get your investment advice from? One Financial Literacy survey from ANZ found that 55 per cent of respondents hadn't actually taken on any professional help, particularly those who earned less than $65,000 or were in younger age brackets.
While the right wealth coaching can be essential when you want to develop an investment strategy, you may also pick up information and tips from some stranger corners of your life. A tweet from Richard Branson perhaps, or even the last book you read. But what about movies? Surprisingly, Hollywood has brought up some big issues for property investment in the last few years.
We've already discussed the Academy Award nominees in this context, but a little more broadly. Let's take a look at three films that have discussed wealth creation and investment in detail, and what you can learn from them.
The Big Short (2015): Make sure you understand financial concepts
This film was nominated at the Academy Awards, and details how several financial professionals predicted the global financial crisis, and actually managed to do quite well off it. It tackles a fairly confusing and complex topic (sub-prime loans and the housing market) and makes it extremely accessible for everyone.
For example, the film gets glamorous celebrities to quickly and often crudely explain complex systems like sub-prime loans, making it simple for the viewer. It goes to show that even though the systems are complex, it is possible to communicate how investment and lending works to the everyday person – you just need the right line of communication.
Our wealth coaches have spent years and years helping people to do this – we might not have the star power of Ryan Gosling, but we help people explain property investment in just as simple a manner.
Moneyball (2011): Research is everything
Sometimes, it can be tempting to buy investment property that has performed well in the recent past so you can accrue capital gains. However, a little more research is required. For example, even though CoreLogic RP Data shows that Brisbane's dwelling values haven't risen as fast as Sydney or Melbourne in the last year, BIS Shrapnel research predicts exceptional growth in the next few years.
Using all the information at hand to your advantage is a key element of your investment strategy. In the 2011 film Moneyball, Brad Pitt selects baseball players based on in-depth research and statistics, and forges a winning team. Working with a wealth coach to get all the information you need for smart investment can help you make a successful portfolio!
The Pursuit of Happyness (2006): Patience is a necessity
While we hope that your investment strategy doesn't include being homeless, as Will Smith's character was, this film teaches the value of patience and hard work in making your financial dreams come true. Despite not having steady income or a residence for the better part of a year, the main character chips away at a plan to boost his clientele and land a rewarding job.
When you are preparing an investment strategy, you can't expect thousands of dollars in your pocket overnight.
It took time, but he went on to be a resounding financial success. When you are preparing an investment strategy, you can't expect thousands of dollars in your pocket overnight. Through smart debt reduction and well-placed investments, you can bring about great capital gains – but over the long term.
We might not be great film directors here at Think Money, but we certainly know how to put together a dedicated investment portfolio. If you want to work out how to create wealth through property, make sure to give us a call to start working on your financial future.