There aren’t many shows I’m addicted to, but 24 is probably one of them. And even though the current season is boring and the show has lost some of its fire, Jack Bauer is the most badass dude on TV. Chuck Norris can sit down, the Jack Bauer jokes are much more hardcore:

• Jack Bauer has been to Mars, That’s why there’s no life on Mars
• When you come face to face with Jack Bauer, you can do things the easy way or the hard way. The easy way is ingesting your cyanide pill.
• Chuck Norris is a Texas Ranger only because Jack Bauer won’t allow him to be a federal agent
• In kindergarten, Jack Bauer killed a terrorist for Show and Tell
• Jack Bauer got Helen Keller to talk
• Jack Bauer played Russian Roulette with a fully loaded gun and won
• If everyone at CTU listened to and did everything Jack Bauer said, the show would be called 12

For those of you that don’t know, 24 is an action TV series on FOX. Jack Bauer is its main character, and he’s kind of like a cross between James Bond and MacGyver. What makes the show unique is that an entire season takes place over a 24 hour period. Each 1 hour show is 1 hour in real time in the story. Needless to say, Jack kills a lot of people in the name of protecting the United States from terrorists and thugs. Some of the most gruesome scenes are when he’s getting tortured or when he tortures someone. The man tortured his own brother for information and regularly breaks laws to achieve the goal of saving the country. A recurring theme within the show is whether or not to do what’s right even if its illegal. Jack does what’s right.

But enough of endorsing my man-crush on Jack. We’re here to do my favorite thing, take pop-culture items and pick them apart until we have six financial lessons. And don’t worry reader, if you don’t watch the show I give plenty of lead in so even you’ll understand the lessons:

1) Sunk Costs
Situation: Jack is regularly put in situations where he suffers in ways we could not possible imagine. For example, in this season alone he was tied to a chair and beaten by a cop, stabbed by his love interest (on accident), and then had live jumper cables attached to his stab wound as he’s tortured. Despite the fact that the rest of us would take the day off after this, Jack gets right back on his feet each time and acts like the situation didn’t happen.
Lesson: This is because Jack understands what a sunk cost is. If you put $1000 into fixing your junker of a car and then it breaks down again, you cannot factor the $1000 already put in into your decision. That $1000 is a sunk cost you will not get back. Focus on the present, forget the past, and make decisions with only current information. Those that focus on sunk costs are always doomed to make bad decisions.

2) Teamwork
Situation: Jack is very much an “in the field” kind of guy. But much of his success comes from the support of the nerds and geeks that feed him information. This is usually CTU (a fake government organization called Counter-Terrorist Unit), but it’s also been the FBI and just someone that managed to hack into government databases. These people send him information to his cell-phone or relay into a headset as he breaks into buildings or infiltrates crime syndicates. He relies on these people to succeed, and with teamwork, they wouldn’t.
Lesson: You can’t achieve financial success on your own. You need the help and the support of others. If you’re married, you and your spouse must work together and set goals. You will rely on financial advisors, friends, and industry knowledge to succeed and make the best decisions. This team is based around you, YOU are Jack Bauer. You have to surround yourself with the right people if you want success.

3) Negotiation
Situation: Many times Jack finds himself in situations in which he must give up something to get what he wants. Many times he must get approval from the president of the United States in order to grant immunity to a criminal. The immunity comes in exchange for information which could lead to saving the country. In another example, he recently bargained to help out CTU (he’s not under their employ) if they would clear a friend of some potential legal issues.
Lesson: Though you don’t have the power of immunity, you do have the power of your wallet. In many situations, this is a very good thing. It’s a buyer’s market out there for homes and cars. If you aren’t negotiating then you’re giving up thousands of dollars. Get the seller to cave on closing costs and a home inspection, get the car salesman to cut the price near invoice or lower. If you’re in a situation where you have leverage, use it.

4) Diversity of Skills
Situation: Jack is a popular guy and he’s always being asked to help out in crisis situations. The reason Jack is in such high demand is because he can do a lot of stuff. He speaks at least German and Russian on top of English, he’s a negotiator, interrogator, pilot, great leader, and master of espionage; all this on top of his military and fighting skills. He never has to worry about finding work, his resume reads like the back of a
Lesson: The more you know the more valuable you are. An investment banker that’s also a master plumber will clearly do better in a recession in a recession than an investment banker and better in good times than a master plumber. Being flexible and able to do any number of jobs helps a lot when money is tight and you have to take what you can get.

5) Take Risks
Situation: On many different occasions, Jack is literally the guy running into a burning building as people are running out. At times, he’s had to jump out of buildings, go undercover with a criminal organization, and hundreds of other scenarios you and I would normally avoid. But he it’s always for the greater good, and he’s willing to do what others are not for success. Make no mistake, he gets scared, but he keeps the faith.
Lesson: Being a young guy, I’d always read that during times of uncertainty in the stock market it’s important to keep you eyes on the future and avoid thinking about the present situation. When everyone else is selling their stocks and mutual funds, you must stay the course. This recent recovery has shown exactly why you must keep the faith. The best returns come after the worst returns. In Jack’s world, running into a burning building is hardly the risk it seems to you and me. In your world, holding your stocks in a down market shouldn’t be scary either.

6) Trust No One
Situation: On average at least once per season Jack is betrayed by someone he trusts. Sometimes he kills them, sometimes they just get themselves killed. But after years of dealing with such traumas he’s learned there are very few people he can trust. Most of the people that know he exists want him dead. He’s always watching his own back, and is prepared to leave an old friend in a ditch with a bullet in their head if they go against him.
Lesson: Bankers, financial advisors, and the like always seem great at first. They’re there to serve you and make your financial life better. But if you don’t watch you back, they will turn on you as soon as they think they can get away with it. Don’t trust anyone any more than you need to. As soon as their behavior gets the least bit sketchy or you don’t think they’re looking out for you best interests, leave them in the ditch (don’t kill them though, that’s Jack’s job).

By The Weakonomist

The Weakonomist is the founder of Weakonomics. Clicking the picture of the puppy will tell you more about him. If you like what you're reading consider subscribing to the blog, following him on Twitter, and checking out the related posts below. Please consider a donation if you really enjoy Weakonomics. Also keep in mind that nothing I say can be construed as financial advice.

categories: lists, personal finance