Cashflow 101 – A Game That Teaches Investing

One of the most classic board games that people will never forget is Monopoly. It’s the first of its kind where the player wins by being the richest in the group, and getting the other players bankrupt. Today, there is a new board game that attempts to upstage Monopoly, and strives to teach people financial literacy.

It may seem puzzling at first how a board game can be the key to financial success, especially when the a cardboard game, some paper money and tokens cost $200 in all. But those who begin to understand the principles of the game can really attest to the way the game opens your mind to the world of personal finance and investing.

Cashflow 101 was created by millionaire Robert Kiyosaki, the author of Rich Dad Poor Dad, and the Rich Dad series. His mission “to elevate the financial knowledge of humanity” came alive upon the popularization of this board game. So what exactly is in it?

The game consists of a board, paper money, 4 pads of game cards, occupation cards, tokens, playing dice, and an instruction manual. So how can all of this amount to $200?

Basically, it’s not the added cost of the materials that gave the board game its price, it’s the education it gives. Think about going to a finance seminar with a well-known financial guru, how much will that cost? Probably way more than $200.

The Cashflow 101 game encourages its players to keep track of their financial statements, make investment decisions regarding small and big deals, and even keep up with extraordinary life events such as having a baby and losing your job. The beauty about the game is that it exposes you to things that could happen to your life. Whether you make the wrong decisions or the right ones, it’s just a game! And when it happens in real life, you’ll know what to do.

It is said that every time the Cashflow game is played, players get different life and finance lessons, and it’s advised to keep on playing the game until you’re ready to apply the lessons for real. Opportunities include investing in the stock market, buying real estate properties, entering into a limited partnership, starting a company, and even buying gold. You’ll also be faced with unusual circumstances such as when your sister-in-law borrows money.

Cashflow 101 is a game that brings to light the rat race that we are all stuck in. The goal of the game is to get out of the rat race and into the fast track. The way to do it is by increasing your passive income, and making it bigger than your expenses.

Though the game could be considered as “expensive”, just remember that it costs a whole lot more to be financially ignorant. Get yourself in the game, and find out if you’re living in the rat race and what you can do to get out of it.

Will Where You Are Make You Rich?

Anyone who’s into investing and earning more from their money may have already heard of Robert Kiyosaki (don’t tell me you haven’t!). Robert was a man who wasn’t particularly good at school and who even failed in a couple of businesses, but is now a best selling author, a successful entrepreneur, and of course, a millionaire. Two of his most successful products are the book Rich Dad, Poor Dad, and the game, Cashflow 101. These products tell of how his failures molded him to become better, and what he did to attain financial freedom.

In his book, Robert talked about financial freedom and the process of getting there. He introduces the Cashflow Quadrant, which is the letters E-S-B-I divided into four quadrants. E stands for Employee, S stands for Self Employed, B stands for Business Owner and I stands for investor. According to Mr. Kiyosaki, In order to be financially free one must learn to move from the E and S quadrants to the B and I quadrants.

1. E quadrant – E stands for employee. You know who you are. Do you have a stable job with benefits? That’s exactly what the employee is after. Money is also known as hours. For example, your charge is $30 per hour, or $60 per hour. Money comes only when you work, and if you decide to take an unplanned day off, you just won’t get paid.

2. S quadrant– S stands for the self employed. These people left their corporate jobs to build their own business. Sounds great right? The problem is, they have now turned their business into another job. They work day in and day out thinking that their working at their business, when in fact they are still stuck in a job they made for themselves.

3. B quadrant – B stands for business owner. This is where we can see the difference between the S and B. The B can easily leave his business for a year to find it growing even bigger when he comes back. The B has successfully built a business system that allows him to leave his business whenever he pleases but still earn money.

4. I quadrant – I stands for investor. These people are those who just seemingly laze around doing nothing, but yet money seems to come to their hands. These people have worked hard early on in their lives, looking for the right investments that will give them money even if they don’t work another day in their life.

Just by reading the descriptions, you already know the difference between those who lie at the E,S,B or I quadrant. It’s the E and S who slave day in and day out for the rest of their lives, working hard for money. While it is the B and I who have mastered the art of having MONEY WORK FOR THEM. Just by definitions alone it’s obvious why Mr. Kiyosaki recommends that people start the shift from the E and S to the B and I.

What about you? What quadrant are you on?