How to Kick Butt at Cashflow 101
Aug 30
Cashflow 101 Game
To hell with other people…I’ve been having such a struggle trying to find other people to play the Cashflow 101 game with I just decided to play alone.
Welcome to the second installment of Rich Dad Wednesdays. Last week it was The Other Side – Too Much Money so logically this week I’m changing the subject completely with:
How to Kick Butt at Cashflow 101.
Here’s what I learned…my advice to myself after playing the game is:
- give up your illusion that money is real.
- never evaluate whether or not to complete deal based on whether or not you have the money or can afford it. Evaluate based on whether or not it is a good deal and then borrow or partner based on that fact.
- you can’t get out of the rat race if you don’t take action [buy assets].
- the real game is played on your income statement / balance sheet, not on the game board.
Cashflow 101 takeaways for real life:
- learn to evaluate the assets you purchase so that you increase your odds of picking long term value propositions rather than gimmick opportunities.
- build and maintain a great credit rating and relationship with your banker so you have access to funds when you do find a worthwhile asset to purchase.
- you must accumulate [purchase, build or inherit] assets that put money in your pocket if you want to get rich. Sitting on the couch and dreaming of 6 month vacations or freedom from a job or buying a lottery ticket don’t count as real action.
Even playing the game by myself I learned a ton. I’m a good player now, basically I can kill the game every time, but in real life my skills haven’t caught up to my game play.
In the game I have no fear of losing money, in real life it is still there. It is clear to me that this is the single most determining factor of success in the world of finance. Fear clouds decisions and its best friend greed will mess with you big time on the other side of the coin.
Give up both of those and you’ll be rich in no time, I’m sure of it. Therefore the beauty of the game, a chance to taste that freedom with without having to eat from dumpsters if you mess up … and before long that lovely taste of freedom from fear and greed will begin to seep into your real life financial psyche.
This post was written by Jon Symons, see my short bio. Or use the contact page to get in touch.
Yeah, it’s about time- I’ve been waiting all day for your Rich Dad Wednesday post! lol Great point about the game, and sorry you don’t have more of the RD crew around to play the game with! Fear is huge- very limiting-. The more you play the game though, the more you retrain yourself and your thinking! fear-b-gone
Sorry for the delay…busy day.
I had the article written 2 days ago too and what’s funny is that since I wrote it, I have connected with 2 CashFlow groups here in town.
So, let the re-training begin!
Not a fan of games (including stock simulators) for exactly the reason you mentioned…the emotions while playing a “game” are very different from the emotions in real life.
Sure, games are great about learning the how to’s (if they apply to the same market which they rarely do) but what truly makes or breaks investments are emotions.
I am more of a risk taker in games because I really don’t care whether I win or lose. There is no fear. Likely since I’m playing with friends no greed either.
Even if I had the same emotions, I can’t use the same techniques I use while investing to manage them. I can’t sleep on it. I can’t ask for more information. I can’t call five of my advisors to consult. I can’t sit for hours looking at the balance sheet for something that my gut says is there but my eyes can’t yet see.
Good points Kimber.
When I first starting playing Cashflow I found the emotions very much mirrored reality. I was playing with a group of strangers and was totally afraid to look like a loser and be the last one in the rat race…you can guess what happened operating from that mind set.
You’re already a pro [Miss. RetiredAt34] so you’re not going to get any of your vulnerable spots “exposed” by a game like that…if you found a game, like Cashflow does [did] for me, on the things that keep you awake at night…it may be a different story.
How about auto racing?…ever feel like going 200 miles an hour. When I play on my computer, my stomach actual flutters when I’m going over a jump.
Yikes, you know me a little too well, Jon.
The racing games are my favorite types of video games.
I do like to go fast.
Not a pro.
I’m on the slow road for investing.
(Which may be why I like to drive fast)
I merely learn from doing
and take the losses as tuition.
The lessons really stick with me that way.
If you’re looking for cashflow groups, you might want to try meetup.com. Its a pretty central source for meeting people and I found a cashflow group in Santa Monica through it.
Hey Jon,
I believe there is an online Cashflow game – perhaps you and readers of your blog could play online together, along with a Skype conference call?
I play regularly with the club I run in London, UK, but it would be very interesting to play with other people from around the world to see how their perspective on things changes the game.
So, I’d be pretty keen to play a few online games of Cashflow 202 with you, if you’re interested.
Hi David,
Thanks…I know about Cashflow online. Probably because I spend so much time at my computer, I really enjoy playing the board game. Since I wrote this post, my old group has gotten together and by sending emails to the Cashflow groups in my town via the RichDad.com cashflow groups list, I located a big group that plays every month here in Edmonton, so I’m all set!
I hope you get as much out of the game as I do
Jon
Great tips I would love to have the game where do I get it and how much does it cost.
Have you ever heard of a Nouveau Riche. They are Cashflow put to real life. You should check it out it is nouveauriche.com.
I dare to say that this game has nothing to teach. Model in Cashflow has nothing to wth the real life. Maybe in USA it is possible to get a credit for real estate when you graduate but in my country you are not allowed to have money from a bank.
What can we learn from Cashflow?
When your work sucks ( I was playing janitor or something…) just give away all your cash for stocks. In real life you will lose everything but here the turtle says you are a hero.
Don’t you see that this risky way of earning money have led to economic crisis? It is irresponsible to own a flat for 10% of it’s value.
I think playing this game can get your mind in the right place, and on the right path to getting real MONEY. Most people don’t even realize the importance of getting your mind in the right place, and self motivation. I say that to say this, in this business the weak minded will not make it. And in this business personally I think if you can not self motivate, you have a long hard road ahead of you, because I can tell you you will not get motivation from anyone like you can get from your self, I have even had bad experiences with family, friends, wife, and more when it come to making money and keeping my dream going. EDUCATION & MOTIVATION is the KEY folks.
I’m interested in a daily cashflow game. Anybody else?
You made a comment about feeling fear…Not sure if this is still a challenge for you as I am commenting 4 years after you made your statement. Keep in mind money is a tool. Trust your self. Finally, read Feel the Fear and Do It Anyway. Good luck!
Yes this game has a ton to teach more than anything it can get your mind set in the right place.
I came across 3 Cash Flow board games at my local Goodwill store about a year ago and bought all 3 of them for $5 each. Absolutely love it and have been playing with my 12 year daughter (who, much to my chagrin, has beaten me a couple of times). There’s a great life lesson in the goal of having your passive income outweigh your monthly expenses . . . especially if you start at a young age.
Thanks for the tips (I’d maybe add that it’s hard to win the game if you’re the doctor or the lawyer, but I’m not sure that translates into real life . . . then again, I guess that’s why they call it a “game”.) Thanks also for your blog. I like your Peter Schiff stuff and am a big fan of his.
I’m new to playing cashflow on the computer. I’ve played the gameboard with my boyfriend but now that our schedule is different, can’t seem to find a way to play it on the computer. I don’t spend alot of time on the computer. Can anyone tell me where I can play online or is there any group I can play with in Salt Lake City???
Kristine, try looking on Meetup.com for Cashflow meetups in your area.