One of the easiest ways to learn about personal finance is from experience.
However, you probably don’t want to learn the hard way when it comes to mistakes. The next best way to learn about personal finance is to see what others have done, especially if they made mistakes, and learn from them.
Movies are a great (And safe) way for you to see what not to do with money. Here are four movie characters who made major money mistakes – and what you can learn about money from them.
4 Movie Characters Who Teach You What NOT to Do With Money
Jordan Belfort from “The Wolf of Wall Street”
The movie “The Wolf of Wall Street” is based on the real-life of Jordan Belfort, who is played by Leonardo DiCaprio. Belfort is a stockbroker who founded Stratton Oakmont, his own brokerage firm.
This movie depicts real-life experiences and showcases Belfort’s extravagant lifestyle, which was funded by fraud and corruption.
Money Mistake 1: Greed and unethical behavior
Jordan Belfort is known for his “pump and dump” scheme to inflate the price of a stock through aggressive sales tactics.
When the stock was high enough, Belfort would sell his shares, and this would cause the stock to crash. His clients were impacted by this and had massive losses. Belfort’s scheme is unethical and illegal, and this eventually led to his downfall.
Money Mistake 2: Lavish and unsustainable lifestyle
In the movie, you can see Belfort’s excessively luxurious lifestyle.
He bought expensive yachts, threw extravagant parties, and consumed a copious amount of drugs. His illegal financial practices fueled his lavish lifestyle. This lifestyle was only attainable as long as he was “pumping and dumping,” which left him with legal consequences and a lifestyle he could no longer afford.
Lessons to Learn
Belfort’s unethical actions teach us the weight of ethical behaviors. It’s important to earn money honestly and respond to the laws set in place. While unethical and illegal behavior may lead to high profits, it will eventually have long-term consequences.
It’s also important to live within your means. Belfort’s lavish lifestyle was only sustainable so long as he exploited his clients. Even if you earn a lot, unnecessary spending can lead to financial instability. It’s more important to save, invest, and plan for the future to secure your wealth.
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Jay Gatsby from “The Great Gatsby”
Leonardo DiCaprio is featured again in this next movie character – Jay Gatsby from “The Great Gatsby.” Gatsby is based on F. Scott Fitzgerald’s book, about a self-made millionaire.
Gatsby is known for his extravagant parties in West Egg, Long Island. He has an air of mystery surrounding his wealth, but many people believe it comes from illegal activities.
Money Mistake 1: Pursuing wealth for the wrong reasons
Throughout this movie, viewers start to understand Gatsby’s motivation behind pursuing his wealth.
He wants to win back his lost love, Daisy Buchanan, and believes that his wealth will create an illusion of grandeur and high social status to help attract her. He wants to earn more money to be able to spend more to impress others.
Money Mistake 2: Lack of fulfillment despite wealth
Gatsby is known for throwing lavish parties. He displays his wealth at every opportunity he gets and lives a life of excess.
However, the more he spends, the more unfulfilled and unhappy he becomes. His main motivation for his spending is to win back Daisy, which he thinks will give him more fulfillment, but his actions actually keep him more isolated.
Lessons to Learn
Money cannot buy happiness or fulfillment. While it’s important to enjoy your hard-earned money, finding happiness and fulfillment in relationships, passions, and meaningful experiences is equally crucial.
Extravagant spending on material possessions or experiences can lead to financial instability and does not guarantee satisfaction or happiness.
Johnny Hooker from “The Sting”
“The Sting” is a classic heist movie about two con artists who attempt to pull off a complicated scam to exact revenge. One of the con artists is a grifter named Johnny Hooker, played by Robert Redford.
Small-time con artist Hooker ends up on the wrong side of a major crime boss. Throughout the movie, Hooker makes several money mistakes with his illegal activities.
Money Mistake 1: Fast money and reckless spending
Very early in the movie, Hooker completes a successful con with his partner, Luther.
He is quick to earn this money, but just as quick to spend it. He splurges on expensive clothes and gambles the rest. This eventually leads him to lose all of his take. Because he isn’t used to consistent earning, he doesn’t understand the importance of saving over spending.
Lessons to Learn
Hooker’s reckless spending is an important lesson to learn about money management.
If you have an influx of money, it’s vital to budget and allocate parts of it to savings, investments, and emergency funds. This is also a reminder that quick money earned through illegal means can lead to bigger problems in the long run.
Danny Ocean from “Ocean’s Eleven”
“Ocean’s Eleven” is a classic heist flick.
It’s extravagant, with a lot of action, but don’t let the power of Hollywood fool you that this heist is a good idea. Danny Ocean, played by George Clooney, orchestrates a highly complex plan to rob three Las Vegas Casinos.
In this movie, you can learn many financial lessons through Ocean’s poor choices.
Money Mistake 1: High risk, no guaranteed returns
While Ocean’s plan is masterfully executed, this is a highly risky plan with no guarantee of returns.
The entire scheme could easily crumble due to unforeseen factors. This would lead to a total loss of time, resources, and investments that it took to plan and execute the heist.
Money Mistake 2: Indulging in a lavish lifestyle without sustainable income
Ocean and the crew involved in the heist live a very luxurious lifestyle.
This requires them to have a significant and continuous influx of money. The team chooses high-stake heists as their income source to sustain their lifestyle. Ocean and the team do not know how to live a simple life, which would require less money to sustain.
Lessons to Learn
While this movie is action-packed, Ocean’s high-risk plan teaches viewers the importance of risk management in personal finance.
While there is some element of risk to growing your wealth, it’s important to calculate those risks and find something with a guaranteed return.
This movie also shows the importance of living within your means and not supporting an extravagant lifestyle without having a steady and sustainable income. This drives home the importance of budgeting, saving, and investing for financial security.
What NOT to Do With Money: Cautionary Tales
If you are ever curious about what not to do with your money, many movies give you good examples of bad financial choices. Finding lessons from movies can allow you to avoid these types of mistakes by watching the potential outcomes play out with no risk to you.
Understanding what not to do with money is just as important as knowing what to do with it!
Photo by Kaysha on Unsplash
