Lessons learned from CASHFLOW Game

My experience on Cash Flow Game

I was given a chance to play CASHFLOW game founded by Robert Kiyosaki, the authors of Rich dad and Poor Dad. Here was my valuable experience.

In the beginning, I always blamed my low number dice that caused me very slow in progress, thus was making me slow in getting the pay-check. Therefore, I kept on chasing for more pay-check turn. This remind me that in real world, we always go after the pay-check or salary actively and even go on for job hop aggressively one another to get higher salary.

Whenever opportunities came, I always went for the big deal. Thought of using the concept of “thinking big” could assist me to win this game, but it resulted that I could not grab most of the opportunities as I did not have enough cash to clinch the deal.

At times, some of us were so engrossed with the game; we had forgotten to claim our pay-check which made us became a “free-labor”. This was so true that it happens in our daily life where sometime we were caught in a situation in performing many works without getting paid.

Along the rat-race journey, we always went round and round and encountered various opportunities, doodad or disaster such as downsize, having kids or buying something that you do not want. I also noticed my neighbor who had been cautiously saving a lot of cash but do not dare to invest and some neighbors were having a very high salary but their commitments were high too.

Some of my neighbors kept on having “kids” which add on their monthly expenses thus making their net cash flow low. Some of them were so unlucky that they had several turn felt under the “downsize” column that caused them to have limited cash and ran a risk of going towards bankrupt.

One of the unique elements along the rat-race is when we felt under the column of charity, we had the option to give out 10% of our net cash to exchange for two dice row for two turn continuously. This remind me on the effect of karma (cause and effect theory in Buddhism), the charity we did will help us to carry out our daily work smoother and faster, just like the effect of two dice compare to one dice.

I was so busy dicing in and out in our rat-race going after the pay-checks; I did not build my passive income consistently. Once I realized that I had to grow my passive income to be more than my expenses, I changed strategies.

I started to pursue on smaller deals instead of big deals which was within my capability. By chance or luck, I bought a number of stocks. But these stocks does not give dividend yield which was not really what I was looking for, but when a opportunities came, I just don’t want to waste the chance as we had limited time to play the game, just like we have limited time in our own life too. Therefore, I bought a few stocks at low price. I only bought stock with low price. Just like in real life, you only buy stocks when market crashed or under-valued stocks.

Then, chances came in. I sold off my stock with handsome profit in a few occasions. I began to have more cash. As I already knew the objective of the game is to build passive income, so I just grabbed whatever deals that gave me passive income such as property with positive cash flow, stock with dividend. At times, I made side deal with other players to acquire their opportunities with some affordable price and went on to build my assets which draw passive income.

I was thinking if I could made money from stock by buying low and sell high, I could do the same trick on property too. Therefore, in one occasion, I bought a property even though it was a negative cash flow as my monthly income could afford that.

After a few round, I managed to sell the negative cash flow property with another handsome profit. Immediately after that, I had a chance to make use of the profit I made by buying a limited partnership company which boosted my passive income significantly.

I went on trying to get a few big deals but fail to clinch it as the big deal to too big for me. Due to the time constrain, I used my cash to pay off my debts and reduced my expenses. With this, my passive income was more than my expenses and I had successfully got out from the rat race and resumed the bigger circle outside.

I managed to go on a few dice around on the big circle route before the games session time was up. I realized that the deal on that outer circle is so different and the cash flow you earned were so huge that you no longer need to worry on your monthly cash flow or passive income anymore.

I guess that is why once you are out from the rat race like most real rich people in the world, you no longer worry on your petty expenses and only focus on bigger and bigger deal which profit you generated had made the monthly expenses you spend become negligible.

The game was so real and so close to our daily life especially the working class people or people who operate small own-managed business. People who earn high salary or income need not necessary can come out from rat race faster if they do not realized the important of building passive income. At times, you need to have reasonable amount of debt or loan for you to maximize the opportunity you have to build assets that could earn passive income.

In real life, it is definitely a lot more complicated. Many factors such as economy, natural disaster, political situation, personal, family elements and many others that could add into your life and increase the complication compare to this board game.

But as long as we are clear on our objective which is to build your passive income consistently to surpass your expenses, focus your hard work and be smart and bold to take calculated risk upon any opportunities arise; we will come out from the rat-race in no time.

If you don’t realize and take action now, you will never get out from rat-race and will never ever achieve your dreams at the outer circle. I believe the world out from the rat-race is beyond our imagination.

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Comments 1 comment

PC 4 years ago

Nicely written, thanks.

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