Each time you play, you get the opportunity to look at the game from the perspective of a different role (profession) and try out various strategies. You may decide that you want to go a more traditional route of investing in stocks and avoiding real estate, or maybe you start with paying down some debt and doing small deals. Some games you may try to go after some “Big Deals” right away and be very successful, but in others “The Market” may change and leave you bankrupt because you do not have cash reserves. In another game you may be “The Janitor” who only makes $1,600 each paycheck but who only has a $20,000 and only $950 a month in expenses. In one game you may be “The Doctor” who makes $13,200 each paycheck but also has a $200,000 mortgage, $150,000 school loans and $9,650 in expenses. So at this point you may be saying, “That’s all great Tom, but how can playing monopoly on steroids help me make money in real estate?” Great question, and the answer is that playing the games vicariously provides you the experience of investing in real estate without having to actually invest in real estate.Ī game of Cashflow takes between 1-3 hours to play and can be played over and over. To win the second phase, a person needs to either land on their dream or accumulate $50,000/month in cashflow. This phase is comprised of “Dreams” (Pro Team Box Seats, Cruise the Mediterranean on a Private Yacht, Golfing Around the World) and “Really Big Deals” (franchises, large apartment buildings, IPOs). Once your passive income exceeds your expenses, you move on to the second phase of the game called the “Fast Track”. You may also have to purchase “Doodads” (shopping trips, lottery and the ever popular boat. Occasionally “The Market” will shift and your investments will be worth more or less than you initially paid. This is accomplished by doing “Small Deals” (buying/selling stock, single family homes, land and starting small businesses) as well as “Big Deals” (buying multi-units, businesses and franchises). The objective of the game is to “get out of the rat race” by accumulating enough passive income that exceeds your expenses. Each person is given a profession cards that defines their income, expenses, assets and liabilities. So the key question becomes “how can one make mistakes so they can learn while at the same time reducing the impact of those mistakes?” Introducing Cashflow 101.Ĭlick Here to Buy Cashflow 101 From AmazonĬashflow 101, created by Rich Dad Poor Dad author Robert Kiyosaki, is an educational board game aimed at teaching investors concepts of accounting, finance and investing. With that said, I also believe that mitigating risk is an important concept to understand as well, especially when it comes to investing.
I agree wholeheartedly with this and believe that making mistakes is one of the best ways to learn. Cashflow 101: The GameĪs the introductory quote to this blog states, one can’t be afraid to make mistakes. I almost never got it right the first time, but the process of making mistakes and trying to figure it out on my own before having his guidance has always made me remember the lesson.
Instead, he would let me try to figure it out for a while on my own.
#Cashflow 101 how to#
He would give me simple tasks to do, but not tell me how to do them. I remember being with him on some of the job sites when I was a kid. My father worked in construction and did contract work on the side. “The greatest mistake you can make in life is to be continually fearing you will make one.”
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