Played rut to riches again. This time I didn’t “retire” in the game, but I still got a positive net worth. I still maintain that I don’t need to pay off the liabilities other than the high interest one’s like overdraft. But even to a self proclaimed experienced player (of cashflow 101 anyway), I saw some interesting strategies that was used by some beginner players. I saw that they were putting their cash in hand into their savings. At first glance, I was remembering how Kiyosaki‘s statement of how “savers are losers”, as that money could be more value in buying assets rather than just being stagnant in a bank. But then I saw it, in the rut to riches games, if you’re not retired and you are in the inner/mentor circle, you have a risk of being kicked out of it and losing half of your cash in hand. So if you were in that position, that would be an acceptable strategy.
I noticed I was upset in the beginning of the game, as an opportunity was blocked by another player, what made it worse was they actually used overdraft to get the deal, that would actually be my strategy if I didn’t have money, but what was bad was they didn’t took advantage of the opportunity to sell it when they could, and instead was left with the overdraft. I didn’t really tell them what to do, I told them their option, pros and cons, but they still chose to keep the property and the liability and the expenses that came with it. I was upset because the opportunity was taken from me, and even upset that the person didn’t make full use of the subsequent opportunities. At almost the end of the game I realized my frustration distracted me from focusing on winning the game.
Almost at the end of the game, one of the instructors/experts told 2 players at my table that the 4 unit commercial deal could be shared to be come 2 X2 units each, that was new to me. I assumed it was an advanced (made up) rule but I let it go. In real life there are cases where a single deal can be shared by 2 players, simplest partnership are spouses. I planned to ask more about that after the game, but I forgot. So that night I opened up the pdf rule book I found online at http://www.rut2riches.com and found the rule to exist under the term syndication. So it was possible to use syndication, and according to the rule book it can be applied to almost any deal applicable to one player, including the $1 stock, Royalites, business partnerships and Real Estates. The only thing it did apply was the directway cards. In the game and in real life, the strategy applies to more than 2 players, the only problem is to get the person who got the deal in the first place to agree on the terms and conditions. And finally the deal can be sold off only with the agreement of all the players who syndicated the deal. I wonder if my wife would be open to syndication, we would be almost unstoppable!
So in summary, my lessons in this session was
- Savers are not necessary losers, It is a good idea to have some amount in the bank for safekeeping. Quoting from several books and workshops, you should have at least 3 t0 6 months of expenses in savings just in case something does go wrong. Good to save, but only to an amount, and then the rest can be used for investments.
- Focus on your goals, do not worry or be frustrated on what has passed and nothing can be done any longer
- Deals can be syndicated or shared, but the profits and risk must be shared as well.