Last Saturday on 8th May 2010, Some LiveWIRE participants/members played an expensive board game called Cashflow 101 created by Robert T Kiyosaki, the guy who wrote Rich Dad Poor Dad, Cashflow Quadrant and other Rich Dad Series books.
The game is similar to Monopoly. Monopoly teaches the players about real estate, the value of land and the buildings on it. Cashflow expands the idea on how rich people become rich through Business, Real Estate and Stocks.
The game starts with the player choosing their color, then uses a small rat statue of that color, and places a cheese of the color onto their dream on the outer track or fast track. Then the player chooses a job card ranging from a janitor, teacher to a lawyer or a pilot. The cards contain a simple financial statement of assets, liabilities,income and expenses. the person then copies them down to a form provided. The player will get the amount of cashflow (=income – expenses) everytime they pass the “paycheck” square. other squares on the board affects the player’s financial statements. e.g.
- Opportunity space – allows the player to buy a big or small deal – an asset such as a real estate, business or stocks. In the case of stocks, you may also sell them for capital gains if you have them. Real Estate and Business may affect income, but can also be sold when a market card says so.
- Market space/card – states market forces that may affect real estate and business. there might someone wanting to buy real estate from the player, or the market improves increasing the players business. the card may also cause the real estate or business to be lost.
- Doodads – forces the player to purchase an expense.
- Child space – adds an expense to the player, reducing their monthly cashflow.
- Downsize – player loses two turns. and hase to pay a month’s expenses. Akin to the player losing their job, taking a turn finding a job, and another working and waiting for their paycheck.
- Charity – allows the player to give charity and in return is able to throw two dices instead of the normal one dice for three turns.
That was from the inner track or the “rat race”. the objective of the rat race is to get out of it, into the outer circle or the “fast track”. In order to do this, the player has to play the rat race and make their passive income from business or real estate more than their monthly expense.
In the fast track, the objective is to land and buy the player’s dream, marked by placing a cheese piece of the same color at the beginning of the game. alternatively they can gain an extra $50K of monthly cashflow from opportunities on the fast track.
For most people, getting out of the rat race takes a few hours. This happens as most people have misconceptions on money management. According to Kiyosaki if you can get out under 1 hour, then your mindset on money has changed for the better. The game teaches people basic accounting, and insights on how rich people become rich.
LiveWIRE members are planning to play the cashflow game periodically in the future.