Here Is What I Have Learned

In Rich Dad Cashflow games the first player who gets into the fast track and buys his dream wins the game. You can move over to the fast track when your passive income exceeds your monthly expenses. So you always look for investments that increase your passive income.

Rich Dad Cashflow Games reiterate the principles outlined by Robert Kiyosaki in the book Rich Dad Poor Dad.

1/ The Rich Don’t Work for Money

You will never get out of the rate race unless you get your money work for you. This is evident from the fact that no matter what ever profession you choose, you are still in the rate race. Let it be janitor or brain surgeon. Larger the pay package, larger the expenses.

All professions have equal chance of getting out of the rat race. Low income profession has a low monthly expense to cover with his passive income to move to fast track. I have won the game with such professions also.

I must admit, it is easier to get started with a high income profession. Because your savings are high and you can make use of it to buy investments.

However, the game gives low earners a level playing field as they can borrow unlimited amount of money from bank if the investment opportunity makes sense and offers net positive cashflow.

2/ Assets and Liabilities

Assets add money to your passive income column month after month. Liabilities take money out of your pocket. The game offers investment opportunities in real estate, stocks, bonds, bullion and businesses.

You should buy an investment only if it brings in positive cash flow. It is alright to borrow money from the bank if you can serve the loan and still have a positive cash flow. In this case it is a good debt.

If the investment takes away money from you, I don’t buy it. Borrowing money to buy such an asset is not wise. This is a bad debt.

Doodads are mandatory in the game. You cannot choose not to spend the money. Luckily this is not the case in the real life.

3/ Mind Your Own Business

The game offers opportunities to start your own business. This is a good idea to earn passive cash flow. Most of them require very little or no capital to start.

(In real life, in my opinion, this is the best way to financial freedom. However, It is not at all passive. Once the business is up and running with a well structured management in place, you may call it a passive asset. To reach this level a business has to grow significantly big.)

4/ Taxes and Power of Corporations

Taxes are automatically cut from the salary. Hence nothing can be done about it.

5/ Money is an Idea

The more you play the Rich Dad Cashflow Game, the more you condition your mind to look for assets and passive cashflow. The idea that working for money is the not the way to financial freedom will sink deeper and deeper in to your mind.

6/ Work to Learn

Rich Dad Cashflow Game does not help much in this respect

In short the game conditions your mind to:

Reduce expenses and save more

Buy assets with your savings

Avoid liabilities

Avoid doodads (of course, you cannot do it in the game)

And I should add:

It does not hurt to take up a higher paying job. But don’t increase your expenses.

Go to Cashflow Game from Rich Dad Cashflow