Wednesday, September 8, 2010

Lessons from the Cashflow Game

Rich Dad Cashflow 101 board game (with CD's)Rich Dad Cashflow for KidsAfter playing and facilitating Cashflow Games, I understand more about the various ways to achieve financial freedom. There are really many lessons that I've learned from the game itself. For those that does not know about the game, here's a brief description, the main aim of the game is to get out of the rat race and into fast track. Which is like get out from our employee cycle (rat race) to achieve financial freedom (fast track) in reality. There's still a pint of luck that's required to win, but the key to it is still in identifying the good deals from the bad deals.

Some of the lessons I've learnt are:
  • It'll be much easier to get out of the rat race if we, the players can collaborate with each other during the game. 
  • The lower our expenses, the easier to get out of the rat race.
  • If my monthly cashflow is low, I would need to aim for higher "savings" amount to buy the good deals that I want.
  • If I have a monthly cashflow is higher, usually, my pay might be higher and same goes for my expenses and hence, sometimes, I need to use higher leverage to make things work better when I do get a good deal.
  • If I keep taking small deals, it'll take a much longer time to get out of the rat race as compared to taking a bigger deal when I have enough money to do it.
The main lesson you will learn from the game is that how you play the game is actually a reflection of how you are playing the money game in reality. By understanding yourself more, it does help in fixing issues that you may not have realized on your own.

In fact, there's even a version for kids that I think parents should get for their kids so that they are educated in the way rich thinks from a younger age. Last time when I'm young, there's only monopoly and I only get to pay at my cousin's house as we couldn't get one. In fact, no one ever gave us a debrief on how to win that game and we really need to figure everything out ourselves. How I wish that I get to play such a game when I'm just a kid!

But do take note that in reality, things are not as simplified as the game itself. It's the idea that's important and when we know about the strategy, it actually takes much longer in reality to get the results when applied as our loan system isn't that simple. I'm still wondering, is there a Singapore version to this game?

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