Few days ago, my officemates and I played the famous Cashflow game from Robert Kiyosaki - author of the book Rich Dad, Poor Dad. It was my first time to see the board, the rats and cheese and the other components of the game.
Kiyosaki said that the game is the reflection of who you are. It reflects your attitude towards money and towards the opportunities that come your way.
Life they say is a series of opportunities - big and small. Sometimes when the opportunity is small we tend to let it pass. But when the opportunity is big we are afraid to grab it, most of the time we move away from it.
I was a sectary in the game earning a meager salary of 880usd and who has a total savings of 710usd. In short I started with 1590usd. This amount is small compared to my co-players who are earning more than a thousand each and who has a lot of savings.
After the game I ended up with 23,570usd. Far better than the performance of the doctor who has a few thousand dollars and the truck driver who has a few hundred and a mountain of debt.
How did I do that? Having little amount of money and presented by a good opportunity, I sold a good property for 500usd. I also acquired some mutual funds that I bought low and sold high. The real treasure I got was when I had an opportunity to buy a great property and sold it for a few thousand. I already accumulated money from trading but is not yet enough for the downpayment of the property. So I loaned 3000 from the bank that i added up on my 2000. I paid the 5000usd downpayment and had a total mortgage of 35000usd. My mortgage payment ammounted to 300usd which was below my monthly income (880). As a secretary I had very little monthly expense so i was able to accumulate more money eventhough my salary was way below the other players. Then suddenly someone wanted to buy my property for a stagering 60000usd. And after the deductions I was 17500usd richer.
After the alloted time, I was still inside the rat race. But knowing that i perform better than the other players gave me some conclusions.
1. It's not the amount of money that comes in but the amount of money that stays and is used for investments.
2. The profession does not equate to wealth.
3. The person tends to ignore the opportunities if he doesn't know anything about it.
4. Too much debt can drown you (alive).
5. Lessen thenliabilities. Pay debts as early as possible.
6. Know what is an asset and a liability.
7. Grab opportunities as long as you are comfortable in it.
8. Know thy opportunities. Invest in education not in doodads.
9. Increase sources of passive income.
10. Know the difference of good debt vs bad debt.