Cash flow is about managing assets, income and debt.

 

Unfortunately most people are not taught how to manage their money. Just like myself I had to learn the hard way. But it is not too late to start and believe it or not managing your cash flow is not hard at all as long as you can change how you think about and use your money.

 

I remember when I was first explaining cash flow to my boys. I explained that the most important aspect of cash flow was to have more assets than liabilities in order to have a good positive cash flow to stay out of the rat race. Now keep in mind they were only 9 and 10 at the time so I got a puzzled look from them.

 

So then I said Assets put money in your pocket and liabilities take money out. They understood much better with that explanation how ever I could still see some confusion in their eyes.

 

I decided to get a board game called Cash Flow for Kids by Robert Kiyosaki in hope of helping my boys understand how to manage their money after all they did get allowance and I just knew that the game would give them them the tools they need to manage money as adults.

 

It was great the way the boys and I played the game and we had a lot of fun. I also got to see how each of them looked at money differently. I did wonder how much they learned and if the game would truly have a positive  influence on them.

 

Well I only had my boys for the weekend as their mother and I are no longer together and it was just the next day after doping them off I got the phone call.

 

You see the older of the boys decided to rescue his mom from having more liabilities than assets. He had observed the way she was spending all her money and never seemed to be able to get ahead. He correctly pointed out the way she managed her money and how he could help her fix that. So yes she did not take to kindly to that especially since she was sure I was trying to get in to her business. After a few minutes of explanation that it was a game I was playing with the boys she finally calmed down.

 

Since then my boys have been able to buy just about anything they set their mind to by saving and being creative. I could not be prouder of them.

 

I thought I would start out with a personal story for my first post and I hope you learned that in order to stay out of the rat race and win the game you have to collect more assets than liabilities. If you are not sure how that is done find a local CashFlow 101 group that is playing the game and you will have a great time.

 

by Erik Salmon

 

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How to get out of the rat race?

After hearing many good things about this game I decided to purchase it and find out for myself. I took it away on vacation with us, and had the chance to play it with my girlfriend, sister and brother in law.

 

To start the game you must choose your color and pick a profession card. On my first game I managed to choose the "Business Manager" card. As an example, the business manager’s total income is $4600 per month. Total expenses are $2930 leaving the monthly cashflow of $1670. Expenses range from tax, mortgage repayments to credit cards and child expenses. Seems the more exotic your profession the more income you receive, but also the more expenses. A lot like real life. Some other examples of professions are truck driver, mechanic, engineer, teacher, airline pilot, doctor and so on.. 

 

The first time I played this game I thought it was going to be tedious as the game is based around a balance sheet, something I am not particularly familiar with. My brother in law is an accountant and is very quick with numbers and calculations, so having him there was very helpful! But you do not have to be an accountant to play this game, as the calculations are very simple.

 

The idea of the game is to purchase enough cash flow positive assets to exceed your everyday living expenses. You can do this by purchasing cashflow positive properties, businesses mutual funds and shares. As you work your way around the board, you land on different squares, examples being "paycheck" (where you receive your monthly paycheck depending on your profession) or though you do not have to land on this square to receive your income, just passing it will get you paid.. another example square is "opportunity" where you will be presented with investment opportunities such as businesses, property shares mutual funds etc. Another example square is "doodads" these are unexpected expenses that are often unnecessary and require you to spend your money.. for example "Buy Big Screen TV, Pay $4000" 

 

Once you have accumulated enough assets to generate a passive income that exceeds your living expenses you are able to leave the rat race and play on the "Fast Track" the outer circle of the board game. Once you are out of the rat race and on the fast track, your goal is to buy your dream which you select at the start of the game. A few examples of the "dreams" are "golf around the world" , "be a jetsetter" , "dinner with the president" and so on.

 

These dreams are not cheap, and if another player lands on your dream the cost of your dream then doubles in price! The first person to buy their dream or accumulate more than $50,000 per month in passive income wins the game.

 

The game takes a little time to get used to all the rules, and to get familiar with the balance sheets, but once you get into things it is a really enjoyable game. I think the beauty of this game is it opens your eyes to real life. You begin to realize that the only way to get out of everyday life "ratrace" is to purchase assets, and not liabilities. I think the game was a real eye opener for my girlfriend, who loves spending all her money on shoes and clothes!

 

This is a game that will change your mind set forever!

http://www.cashflowboardgame.com

 

 

 

Come and enjoy our monthly game and

have unforgettable night of fun and learning.

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Give us a call for more information

Ruben & Sandra Santiago

(727) 481-6902

 

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The Next Trillion Dollar Industry

 

In The Next Trillion, Pilzer exposes the truth about why half the U.S. population is unhealthy and overweight: Americans have become caught between the economic interests of the trillion-dollar food industry and the trillion-dollar healthcare or "sickness" industry.

 

In analyzing these two gigantic industrial complexes, Pilzer focuses on an emerging "wellness" industry that will soon occupy an additional one-seventh, or "next trillion," of the economy—an industry ripe with entrepreneurial opportunities that will eclipse those of today’s Internet-based companies

 

Listen to this amazing interview - Click Here

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