I think we’d played the game together maybe a total of maybe 4 times, when he first beat me.
It was a blow to the ego, but seeing my 17 year old godson Conner, grasp the concepts of “how to make your money work for you, not the other way around”, eased the pain (slightly)
For those not familiar with the board game by Robert Kiyosaki (author of the widely successful Rich Dad, Poor Dad) there are two stages to the game play, but first you have to take on the persona, and financial situation, of a Truck Driver, Mechanic, Lawyer, Airline Pilot, etc.
In the first stage of play, referred to as “the rat race“, the aim is to raise your passive income level to where it exceeds the character’s expenses. The winner is determined in the second stage of the game, “the fast track”. To win, a player must get his or her character to buy their “dream” or accumulate an additional $50,000 in monthly cash flow, whilst avoiding lawsuits, divorce or tax audits.
The heart of the game though are the player sheets where players learn how to fill out a financial statement. These financial statements, take the place of traditional “score cards”. As you land on cards and invest in different deals, you must log each change, so that you can see more clearly what is happening with your money. In essence, through the game play and cashflow management it shows how assets generate income, and how liabilities and ‘doodads’ are expenses.
Now following on from my recent post sharing the house rules for cashflow 101 we use, I asked Philippines based Ronald Cagape of LivingCashflow101.com, to put together this guest essay and share the companion workbook to Cashflow 101 he put together.
I don’t know of anyone, who in the past 5 or 6 years, would have facilitated more games of Cashflow 101 than Ronald… and although his style is a little different to what you usually get here, the observations he writes below are absolutely worth testing out as you play the game.
In fact, RichDad.com have just released a completely new and updated online version of Cashflow 101, which can be played for free. So if you’re up for a challenge, send me a tweet, and we’ll try and tee up a game some time.
Your Journey Starts Here
First of all, I’d like to congratulate you for taking the initiative to invest in your financial education. Some people just wait for things to happen in their life. Unfortunately, life doesn’t work that way. You have to sow something first before you can reap the rewards. Even the guy who wins the lottery had to buy a ticket.
I believe this is your ticket to winning the lottery – every year.
If somebody sent you to this webpage, that person loves you. Take a minute to call them and thank them for this gift. To make sure that the gift is not wasted, complete all the 10 objectives in this book and then call them again to give them the good news.
This workbook is a companion workbook to the Cashflow 101 game, a game that has led me to where I am now. The game has been instrumental in changing my mindset and getting me on the track to real estate investing.
I did not create the Cashflow 101 game. That honor belongs to Robert Kiyosaki, the author of Rich Dad,Poor Dad.
However, I have facilitated over a hundred games the past 6 years and I know the value of repetition. The people who have played the game multiple times have all gone to successfully play the game in real life.
Playing the game multiple times is recommended because it’s impossible to learn everything in one sitting. On average, you have to play the game at least 10 times to get the most value out of it.
This workbook is designed to get you to play 10 games. Each game has a specific objective dealing with aspecific area of the game. At the end of 10 games, you will consistently get out of the rat race in under an hour and you will learn how to facilitate the game for other people.
How to use this Cashflow 101 Workbook
People go to a gym to exercise their muscles, this gym (workbook) is to designed to exercise your financial muscles to achieve peak financial fitness!
You will need to play Cashflow 101 with 3-6 players to get the maximum benefit. Read the game manual because the instructions for playing the game are in the manual.
Each chapter of the workbook is applicable for one game. Although it’s possible to accomplish more than one objective in a game, I would encourage you to just focus on one objective each game to extract the most benefit.
If you do not complete the objective, play again with the same objective until you do get it. It’s ok to fail in the game. It’s just a game! That’s the beauty of the game, you fail in a safe environment but you still benefit from the experience.
Each chapter has a section for the Objective, Auditor, Players and Game Review. Before the game, fill up the following items:
- Auditor Name
- Player Names and Contact Numbers
- Profession, Starting Monthly Cashflow, Starting Cash
After the game, fill up the Ending Cashflow and Ending Cash. Answer the guide questions and pick 1-2 questions to share with the group. This is the most important part of the game. Sharing your learnings will allow that learning to stay with you.
What’s Next? Play The Game In Real Life
Congratulations! You’ve made it this far. It’s time for you to graduate to the next level. I encourage you to continue playing the Cashflow 101 game, facilitate games for others and help us elevate financial literacy.
In addition, play the game in real life this time with real money.
By now, you have a good foundation of financial literacy. You know which deals will make you money and which deals won’t. The key in real life is to reduce an opportunity into a deal card and determine if you will make money or not.
Be on the lookout for opportunities to continue to learn. Attend seminars, read books and most importantly, take action – just like you did with this workbook.
Again, congratulations! Welcome to your new beginning.