5 Financial Lessons from Donald Trump


Who wouldn’t want to learn some financial tactics from Donald Trump (One of the world’s most successful and popular billionaires)? He has stakes in Trump Tower, an exclusive condo building at 502 Park Avenue and many more properties, including upscale golf courses, resorts, and hotels, at prime locations in the USA and the rest of the world. He is best known for his NBC television show “The Apprentice” (An American reality game show). His words in the show, “You’re fired!” are permanently glued to him. Oh yes, how can I forget! He becomes the president of the USA after defeating Hilary Clinton! Love him or hate him, but you can’t ignore him. Donald Trump conquers all odds to become the president of the world’s most powerful economy.

Although many people have issues with his arrogance, there is no denying that his election campaign taught various financial lessons. Let’s take a look:


1.Set goals: As said by Napoleon Hill in his book “Think Big and Grow Rich”, it is essential to set goals to achieve success in life. Though, Trump’s pre-election announcements bordered on overconfidence, the take-home message here is that he dares to think big and set high goals, regardless of whether he’ll achieve them or not. Some of his key promises were building a wall on a southern border and make Mexico pay for it, and temporarily banning Muslims from entering the USA. Some people found these promises unrealistic, but believed that these got Trump the much-desired attention. Though, some may find his unswerving confidence obnoxious, it brought him into the limelight and made the USA election the topic of many talk shows.

Before you start investing, it is important to set your goals like, your child’s education/marriage, foreign vacation, retirement, etc. and invest accordingly. Even if you fall short, you can still surpass your competitors who may be faltering in the absence of any goal. Also, unrealistic expectations can leave you and your finances in a mess. So, make sure you have realistic expectations to avoid any shock later.

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2. Expect the unexpected: Nassim Nicholas Taleb, a Lebanese-American essayist, introduced the ‘black swan theory’.  A black swan is like a series of unpredictable events which are deemed improbable, yet they cause massive changes.

Donald Trump is the same black swan. The presidential election seemed to be a forgone conclusion with Hilary Clinton as the clear winner by media and poll results. However, ten days before the election voting, FBI investigation emails into her mailbox reversed the game and results too.

No one can predict the future with complete clarity. Meteorologists also do weather forecasting which is not correct every time. The same holds true in politics and investment. As soon as you think that you have understood all the rules, you face new turns and some hard losses.

Similarly, investors should be ready to face events which they could not foresee. Here’s a simple trick to incorporate this lesson into your investment portfolio— diversify all eggs in your investment portfolio for better returns. And such investment options can include fixed deposits, gold, mutual funds (both equity and debt) and real estate. A correct mix of investment options in your portfolio can cut the risk and reduce the volatility of the portfolio. In addition, a proper asset allocation brings diversification and encourages discipline.  


3. Invest as per your requirements: Believing everything you read in the news can result in a false sense of fear and complacency. Thanks to the media, even people outside the American continent created a strong viewpoint against Donald Trump, who later emerged as the clear winner.

Similarly, when it comes to investment, it is necessary to do your research and anticipate the market. Many times, we avoid investing in a particular option just because our friends or family have rejected them. However, underdog stocks and mutual funds of today can become the leaders of tomorrow, while the front-runners can come last in the race. Though, the probabilities may be low, sometimes underdogs also win, and unexpected things happen.

Sounds familiar? Hillary Clinton was arguably the front-runner in 2016 presidential race. However, in a week’s time, Donald Trump emerged from out of nowhere to become the president of the USA.


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4. Focus on health: Trump has devised plans to make the health insurance segment more efficient and effective in the USA. Trump, who has been a staunch critic of Obamacare has decided to keep at least two provisions of the present plan: the inclusion of people with pre-existing ailments, and the inclusion of adult children (up to the 26-year of age) who are living with their parents and covered under their parent’s health care plans. In the USA, the medical cost is one of the highest in the world, and therefore, Trump’s focus is on providing more health care facilities at an affordable rate.  

A healthy nation makes a healthy future. After taking a cue from Donald Trump’s strategy, you should also focus on your health and well-being. While the government should take health reform initiatives to cover all the sections of the society, people should also purchase health insurance policies to fight against medical inflation which is hovering at an alarming rate.   

In today’s time of high medical inflation rates, failing to hold adequate health insurance coverage can prove costly. It could either lead to poor health care because of non-availability of any financial support or force an individual into financial distress due to spiraling medical costs. If you have a comprehensive health insurance coverage, then you can get health coverage against unforeseen medical expenses. Moreover, if you already have a  health insurance coverage or want to increase the insurance cover at reasonable rates, you should go for a super top-up policy that gives additional coverage when the threshold limit of the basic health insurance policy is crossed. You can buy a super top-policy mediclaim insurance policy, even if you don’t have any base mediclaim insurance.


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5. Review your portfolio: During campaigning, Trump released many objectional statements and commented on the rival party and their personal lives. His lewd comments sparked uproar and created a negative image among citizens. However, after a while, he realized and apologized for his comments and took steps to correct all his wrong doings. And the result—he won the election.


Though it is good to invest your money; it doesn’t mean you just invest and forget it. It is necessary to review your investment portfolio regularly to make sure that you are on a right track. The periodic review will also help you rebalance your portfolio. You can switch funds from equity to debt and vice versa, as per the market condition.

Donald Trump knew the meaning of success when he said, “If I don’t win, I will consider this a total and complete waste of time”. He had a clear message, “Never run in the race with the hope of being the second best.

So, when you decide to invest, make sure you have a proper strategy for it. A half-hearted step will not take you anywhere close to your financial goals.

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