I purchased Robert Kiyosaki’s Boardgame Cashflow 101 and immediately got hooked on it. It’s an interesting game that allows you to get out of Rat Race through buying/selling properties, businesses, and shares. It’s pretty much like monopoly but also different in a lot of ways as it teaches you how to become rich and financially independent even on a small salary. After having played the game numerous times, I’ve learned a lot of lessons that not only help me in my business but also in my real life.
6 Lessons I Learnt From Playing Cashflow 101 (+ How they can help you grow your business)
Use the KISS Principle and get out of the rat race faster –
KISS stands for Keep It Simple Silly. Keeping things simple both in the game and real life is going to help you get out of rat race or any situation faster. As a part of playing the game, every player has to pick a profession and work their way on getting out of the rat race by increasing their cash flow. Every time I picked an easy profession like a teacher or a truck driver or even a mechanic, I was able to get out faster in comparison to complicated professions like Pilot, Doctor or Lawyer. When your salary is low, your expenses are low which means everytime you get paid, you can use the cash invest and create more passive income. Similar principles also work in real life when you are starting your own boutique. Keeping your overhead business expenses low when starting out means saving more to re-invest back into your business thereby making money work for you.
Start small, don’t jump straight onto big deals –
Starting with small deals give you the opportunity to start building your portfolio until you can flip them for profits and buy big deals that generate more cash flow thereby helping you to get out of rat race. Same is applicable in real life as well. If you want to start your online boutique, start small. First, have the boutique generate cash and then use that cash to re-invest and grow your business rather than jumping in with all the savings and then trying to figure out what to do.
All that glitters is not gold –
The saying is true in both game and the real world. Not everything that looks profitable turns out to be one. During the game, there are several deals that require a hefty down-payment that would tempt you to borrow money from the bank. However, such deals often lead to negative cashflow than a positive one. Paying $1000 to the bank as a monthly income for a property generating only $800 would generate a loss. When running your own boutique, if you order too much stuff that did not sell, you’ll end up paying from your pocket however if you work smarter and go for options like dropshipping, where you would pay for the product only after your customer has purchased and paid for it. Therefore providing you with cash to buy the product.
There’s is no One-Size-Fit All strategy –
With multiple professions to choose from, there is no one size fit all strategy to get out of the game. Sometimes you buy-flip properties to make more cashflow, while other times you invest in businesses to get out of the rat race. The only thing that remains common is the goal to create more cashflow. The similar strategy applies when running your own online business. Your end goal is to attract customers, reach your target audience and make sales in order to generate cashflow. How you reach that goal is entirely up to you. Online marketing, offline marketing, influencers, product reviews, press releases or more. You can create your own strategy that would suit your time, knowledge and pocket. And if one strategy doesn’t work, just like in the game, you can always switch to something else.
Wait for good opportunity than settling for not so good ones –
You’ll often encounter properties or deals with huge downpayment but little to no and sometimes negative cashflow. Instead of jumping and buying every opportunity that comes your way just to increase your assets, it’s better to wait for good ones that would create higher profits and better ROI. Similarly, it’s important to find the right opportunity in your business, in terms of right platform, supplier, and/or products. If you’ll settle for any supplier or product that you have no knowledge about, you’ll end up working more for less (profits), eventually losing momentum and interest and shutting down your business. It’s just logical to take more time and find the right deal than settling for not so good ones.
Learn how to spot a good deal –
One of the biggest challenges in the game and real life is to spot a good deal and grab it. Sometimes you’ll we have a good deal right under our nose and it slips away because you did not realize it. While playing the game last night, I came across a big deal for a duplex with a downpayment of $8000 and cashflow of 160. Even though I had $10,000 and could invest, there was something inside of me that told me to pass. I remember the look on my partner’s face when he saw me pass the deal because I still had a long way to go to get out the rat race. However, the next deal I picked was also for a duplex but with less downpayment and more cashflow. I immediately grabbed and paid for it. Had I just focused on adding more assets, I would have not been left with any cash to buy the better deal and would have been stuck with the first one. Differentiating a good deal comes with time and experience. Similarly, while running your online boutique, you’ll be able to find and spot good suppliers and products with time and asking yourself how can I do better.
BONUS LESSON – Keep revising your strategies –
You’ll often encounter setbacks when playing the game in form of doodads or unexpected expenses, losing money in shares and more. But the biggest lesson is to keep playing and revising your strategies in order win the game and get out of rat race. Similarly, when running your own business, it’s important to keep revising your strategies, finding new ways to promote your business, find new suppliers, have a backup plan and find ways to reach our goal. Be stubborn about your goals but flexible in your methods.
“Your mind is your greatest asset, so be careful what you put into it.”
– Robert Kiyosaki
It’s a fun game to play, learn and increase not only your financial IQ but also lessons you can implement in your daily life. As Robert Kiyosaki says, “Think of Cashflow as the MBA program for people who want to have fun, learn fast and get rich”.
If you interested in playing the game, you can buy it here
Have you ever played or heard about the Cashflow 101 Board Game? How was your experience playing it? Share in the comments below!