What Is The Difference Between Net Worth And Cash Flow Create Wealth by Playing the Cashflow 101 Game

You are searching about What Is The Difference Between Net Worth And Cash Flow, today we will share with you article about What Is The Difference Between Net Worth And Cash Flow was compiled and edited by our team from many sources on the internet. Hope this article on the topic What Is The Difference Between Net Worth And Cash Flow is useful to you.

Create Wealth by Playing the Cashflow 101 Game

The basics of finance are becoming more important to more and more people. As people strive to avoid the “rat race”, they realize that their main limitation is that they don’t have much financial education. The the cashflow 101 gamea financial education game created by Robert Kiyosaki, is trying to change that.

Game description and objective

Cashflow 101 teaches people how to use a balance sheet while imparting other basic financial knowledge. Players start on an internal track called a “rat race” where they earn income based on a randomly chosen career, such as airline pilot, secretary, etc. They get their salary every time they pass a “Payday”, and the higher their income, the higher their monthly costs. The total income is recorded on the balance sheets and account statements, and the dice determine the moves. As they move around the board, they can be hit by random events, such as “Kids” or “Doodads” that require payment, as well as opportunities to invest in businesses and rent real estate, which increases the player’s passive income. While on the “rat race”, their goal is to find a way to make their income exceed their expenses by generating significant passive income and reducing expenses as much as possible.

This is Robert Kiyosaki’s definition of wealth; when passive income exceeds expensesand believes that people can achieve wealth by playing a board game and transferring this principle to real life.

As you play the game, you learn about assets and liabilities. While “doodads” are fun to get and kids are important, their effect on your income is a “limitation” or negative effect. Too many commitments, and your income will quickly be eaten up. At the same time, investments are “assets” that increase your income.

When a player’s income reaches a higher amount than his expenses, he moves to “Fast Track”. On Fast Track, players win by having $50,000 in income or buying their dream. In order to do this, they have to buy options to increase their income. Once the dream goal or income is achieved, the player wins the games.

Part of the fun of the game is watching other players’ strategies, as they try strategies ranging from conservative to risky, and see how they pay off. Since there is a wide range of potential strategies that can work, and this is a game environment, they will try several different strategies to determine what works best. In the end, most players have fun, especially when they realize that the game is teaching them extremely useful lessons that they can use in their real-life financial choices.

Like in your own life

Another aspect of playing the game is that your real-life financial problems, created by your own choices, become prominent. When it comes to dealing with money, do you let your emotions rule your decisions? Are your strategies too conservative or risky? You might learn something about yourself when you realize that the way you react during a game reflects the way you react to situations in your own life.

One criticism of the game is that investments play too much of a role in the game, as Robert Kiyosaki, whose theory the game is based on, generally dislikes investments, calling them too unpredictable. Otherwise, the game is good for learning financial theory, as it covers most aspects of creating personal wealth.

Different flavors

Cashflow 101 comes in three basic variants. There are two board games, one for children and one for adults. There is also Cashflow E-Game which allows players to play against each other no matter where the two are. E-Cashflow is more complicated than a board game because it has more options, including investing in stocks. Although the game is somewhat expensive, at almost $200, the game is undoubtedly worth it, because if you play even once, you will stimulate your interest in financial theory. The cost might be worth it for anyone looking to escape the rat race.

Video about What Is The Difference Between Net Worth And Cash Flow

You can see more content about What Is The Difference Between Net Worth And Cash Flow on our youtube channel: Click Here

Question about What Is The Difference Between Net Worth And Cash Flow

If you have any questions about What Is The Difference Between Net Worth And Cash Flow, please let us know, all your questions or suggestions will help us improve in the following articles!

The article What Is The Difference Between Net Worth And Cash Flow was compiled by me and my team from many sources. If you find the article What Is The Difference Between Net Worth And Cash Flow helpful to you, please support the team Like or Share!

Rate Articles What Is The Difference Between Net Worth And Cash Flow

Rate: 4-5 stars
Ratings: 7331
Views: 8947659 7

Search keywords What Is The Difference Between Net Worth And Cash Flow

What Is The Difference Between Net Worth And Cash Flow
way What Is The Difference Between Net Worth And Cash Flow
tutorial What Is The Difference Between Net Worth And Cash Flow
What Is The Difference Between Net Worth And Cash Flow free
#Create #Wealth #Playing #Cashflow #Game

Source: https://ezinearticles.com/?Create-Wealth-by-Playing-the-Cashflow-101-Game&id=212517

Related Posts