Even though Rowling released the last Harry Potter book back in 2007, she continues to earn a respectable sum of $14 million. She mainly earns from her exclusive website Pottermore and from publishing other books. Rowling’s journey proves that persistence and hard work are no less than magic, and can be as effective as the elder wand.
Below are four money lessons that we can imbibe from J.K. Rowling, the author:
Prepare yourself for the worst
Owing to Rowling’s skill, her first three Harry Potter books were among the best-selling titles in both the United States and the United Kingdom. She continued to break records with each subsequent book in the series. She had established a record for the fastest-selling book in the U.K. and U.S. when she released the seventh and final book of the Harry Potter series.
However, Rowling has never taken any of her achievements for granted. While quoting about her brief marriage, unemployment, status as a single parent, and dependence on welfare, she defers that some shortcomings are unavoidable and it’s important to be prepared for the worst. However, the key is to have the humility to prepare in advance and put yourself in a position to withstand life’s ups and downs.
Therefore, if you are the only or primary provider for your family, consider saving/investing to protect your dependents from financial problems.
It’s better to pay with cash
In an interview, Rowling confessed, “I hate not having cash on me, and that’s definitely a connection to having been on benefits and, you know, just watching my cash dwindle through the week and praying it will last”. Well, it’s completely understandable that being broke has left an indelible mark on Rowling. She has indeed learned the hard way.
According to factual data, Rowling is acting wisely by making as many of her purchases with actual cash as she can.
It’s a proven fact that credit and debit card owners spend 12% to 18% higher than people who pay through cash.
McDonald’s customers who pay with a credit card typically spend $7 whereas those who pay with cash spend $4.50 on average.
According to a survey, credit card users are willing to spend more as compared to the ones who use cash.
Thus, carrying cash can actually help you to save more. Although a credit card can help you improve your credit score, cash can help you stick to your budget i.e. basically saving you from overspending.
Save for retirement
In a 2015 interview, the following tale was offered by J.K. Rowling, she said “I met a man a couple of years ago who had grown up with a huge amount of money. And he said to me in passing, ‘You know, money is not the most important thing.’ Which are both true and profoundly ignorant. Because when you have no money, it is absolutely the most important thing. Only someone who has never had to worry can make a statement like that.”
This is a compelling argument for why you should begin saving for retirement or fortify your retirement savings even further.
It’s significant to start saving for retirement. Longer lifespans and more active retirement lifestyles are commonplace. This makes it more crucial than ever for you to consider where you will get your money from when you retire.