Robert Kiyosaki’s Cashflow101 board game has been one of the most innovative game created. Its aim is to help you understand one’s finances. Basically based on his book Rich Dad, Poor Dad, the game is designed to enable players manage their finances.
I long wanted to play this game years back but it is also one of the pricey game. Also in order to really enjoy the game you should be playing with others. I was still in Guam at that time and I have no idea if there were any groups there that played the game. You might have played this game already when you got invited by investor groups in Facebook or any of the mindmaster group you are in. Recently there is a web version of the game and it’s free after you sign in. I did sign in but it only took me yesterday to really play the game.
A lot of those who played the game found it boring and even don’t get the idea behind the game. They say they have been going round and round in the rat race and never made it to the fast track. The truth is the game is not about who will win but rather it is how you will get out of the rat race, into the fast track and achieve your dreams or the set desired cashflow. So the game does not stop if one wins, rather you should continue on going until you achieve your goals.
Let me share with you what I have learned.
In the rat race you start just like anybody else. You live from paycheck to paycheck from your job and you get money when the dice you roll falls into payday. Also from time to time your dice falls to you having to pay credit card or other expenses like having another child(the maximum is 3). If you notice you have this passive income indicator. In the rat race the aim is to achieve the set passive income in order for you to go to the fast track.
How do you achieve your passive income? The best way to achieve your passive income is through real estate or cashflow generating opportunities. From time to time your dice will fall on the deal. You have to choose between a small or a big deal. Usually small deals will be about stocks or CD(certificate of deposits). Remember what passive income is. It is the income you earn without you putting hours. Stocks only appreciates thus adding to your cash when you bought the stock at a low price and sell it high. In the sense of the game it is not actually passive income but it is still important because it adds to your cash so that the next time you get to have a deal about a real estate which gives a good passive income you are able to buy it.
Also remember that as you play the game your dice might fall on you paying your expenses of which are mortgage and loan payments(check your expenses list) paying these mortgage and expenses decreases your expenses thus in the future turns you will be able to save and have enough money for a deal that might just give you that required passive income to move you to the fast track.
Now when you get to get out in the rat race it is a whole new world. Your aim is to fulfill your dream or to achieve a level of cashflow. As they say big dreams comes with big risk. In the fast track you can lose money big time like landing a lawsuit or getting into a divorce. At the same time you are given opportunities beyond such like owning a business that gives a higher cashflow. In the fast track you get to save lots of money by investing in business that will give you cash inflows that will help you acquire more income generating business. Some of the businesses are with risk like buying 500,000 shares of a bio-tech company at 10 cents per share with a possibility of price appreciation to a dollar a share when your dice rolls into a particular number.
While going through the game from time to time you would also have the chance to give to charity which will give you perks later on.
The key of the game which is also the key in your financial life, that is balance and well use of your resources. You might have a good deal in your turn but don’t have enough cash for the down payment. You might also have enough cash but an opportunity to sell a property with bigger returns will be lost because you didn’t buy one when you got a chance to buy. Unexpected expense like another child or other emergencies might arise but you got not enough cash thus you end borrowing adding to your piling loans and mortgages.
Be wise in managing your cash, think over cash inflow opportunities, and don’t be greedy. I hope you get to play this game and soon learn to apply the rules into the real world.
P.S. 1. By the way not to brag, when I played the game by myself I finish the game after about 45 minutes, my goal was a Asian city tour. Today I logged in and played with another online player and finished the game in about 30 minutes(this time my goal was a African safari photo something). How about you?
P.S. 2. DO you want to try playing Cashflow101 classic? Check it out here http://www.richdad.com/apps-games/cashflow-classic.aspx