You may have heard of a game called Cashflow 101. The author of Rich Dad, Poor Dad – Robert Kiyosaki, created it. If you haven’t yet read Rich Dad, Poor Dad then I highly recommend it. I find that books that teach using stories can be very powerful ways of learning. In this book he talks about what he learnt from his “Rich Dad” (who was actually his friends Dad) and his “Poor Dad” which was his real Dad who was an educator. You learn through the book powerful lessons he learnt about passive income and how the “Rich Dad” looked at assets and expenses.
Basically anything that doesn’t bring in money is considered a liability. Many people think that their house is an asset – but if you are paying off a mortgage then his Rich Dad would not consider that an asset as it is taking money out of your wallet. I highly recommend the book if you haven’t read it You can see some mixed reviews on the Amazon site and make up your own mind. Also there is a digital version if you want to get it today without the wait. Just click on the Image if you’d like to take a look. There are now a series of different books and I have three ofthem – so if you like the style of the first one then you may wish to further educate through his other books. Also for auditory learners they have a tape series.
On top of the book a few games were created that teach the principles of the book and people can learn them in a fun way. I recently went to a Property Networking Club in London and had a go for my first time. Hosting the games was a great guy who I met at the World Internet Summit who’s also one of my subscribers. It was a shortened version of the game as we only had a fairly short time to play. I’m no expert on the game but it was after playing that I thought was a great idea for an email/report– how to play the real life game of Marketing Cashflow 101.
This may be something that you’ve never done – is actually take stock of your current situation – the above may not cover every conceivable expense and income but should give you a good picture. The game starts and you throw a dice and you move around a little circle (called the Rat Race (sound familiar))
You can land on spots that give you an opportunity and you can choose a lower cost opportunity or a higher cost opportunity. It could be shares or a property for example. And will give you figures for passive income – how much it costs. There is also an opportunity square – so you might have bought an apartment and the opportunity card applies to people who have bought apartments e.g. it might give you the opportunity to sell the apartment for 3 times what you bought it for – or if you have shares it may say that shares have gone up x% The aim of the first section of the game is to get out of the rat race. So how do you do that? What you want to do is have it so that your “Passive Income” is more than your Expenses.
Whoa there Paul – what is Passive Income? Well for those of you who haven’t heard of this term – it basically refers to income which on the whole comes in without you having to do much work to get it. Let’s say you are renting out a house then the rent comes in month after month while tenanted and you rarely have to do much. The same is true if you are an author – once the book is launched then you can get royalties from that book for years to come – do the work once and be paid over and over.
So why does that mean I am out of the rat race? Let’s say the expenses you have each month are $2000 dollars. Now what would happen if you were to lose your job or something were to happen to your health. You may have some money coming in from benefits from the Government but unlikely they would be $2000 a month so you’d be losing money. Now what about if you had $2000 per month coming in with passive income? Then if something were to happen then your expenses would be covered. It also means that if wished to you could leave your Job and start doing something you are passionate about and start building more passive income. Many people go into business for what they think they will get out of it – more time with family, want to become a cinematographer, want to retire on a beach with lots of money…Running a business is hard work and usually requires doing more hours than you would in a job – and often it relies on you being there for the business to operate.
But if you work on having passive income and having systems then you can build a business that you are not integral to the business. This then puts you in a strong position if one day you want to sell that business. Within our little game like I said we didn’t have a great deal of time – there was 4 games being played and I think we played for 2 hours (including instructions). 2 People on my table managed to get out of the rat race in that time.
So which way forward? Click Here
Basically anything that doesn’t bring in money is considered a liability. Many people think that their house is an asset – but if you are paying off a mortgage then his Rich Dad would not consider that an asset as it is taking money out of your wallet. I highly recommend the book if you haven’t read it You can see some mixed reviews on the Amazon site and make up your own mind. Also there is a digital version if you want to get it today without the wait. Just click on the Image if you’d like to take a look. There are now a series of different books and I have three ofthem – so if you like the style of the first one then you may wish to further educate through his other books. Also for auditory learners they have a tape series.
On top of the book a few games were created that teach the principles of the book and people can learn them in a fun way. I recently went to a Property Networking Club in London and had a go for my first time. Hosting the games was a great guy who I met at the World Internet Summit who’s also one of my subscribers. It was a shortened version of the game as we only had a fairly short time to play. I’m no expert on the game but it was after playing that I thought was a great idea for an email/report– how to play the real life game of Marketing Cashflow 101.
This may be something that you’ve never done – is actually take stock of your current situation – the above may not cover every conceivable expense and income but should give you a good picture. The game starts and you throw a dice and you move around a little circle (called the Rat Race (sound familiar))
You can land on spots that give you an opportunity and you can choose a lower cost opportunity or a higher cost opportunity. It could be shares or a property for example. And will give you figures for passive income – how much it costs. There is also an opportunity square – so you might have bought an apartment and the opportunity card applies to people who have bought apartments e.g. it might give you the opportunity to sell the apartment for 3 times what you bought it for – or if you have shares it may say that shares have gone up x% The aim of the first section of the game is to get out of the rat race. So how do you do that? What you want to do is have it so that your “Passive Income” is more than your Expenses.
Whoa there Paul – what is Passive Income? Well for those of you who haven’t heard of this term – it basically refers to income which on the whole comes in without you having to do much work to get it. Let’s say you are renting out a house then the rent comes in month after month while tenanted and you rarely have to do much. The same is true if you are an author – once the book is launched then you can get royalties from that book for years to come – do the work once and be paid over and over.
So why does that mean I am out of the rat race? Let’s say the expenses you have each month are $2000 dollars. Now what would happen if you were to lose your job or something were to happen to your health. You may have some money coming in from benefits from the Government but unlikely they would be $2000 a month so you’d be losing money. Now what about if you had $2000 per month coming in with passive income? Then if something were to happen then your expenses would be covered. It also means that if wished to you could leave your Job and start doing something you are passionate about and start building more passive income. Many people go into business for what they think they will get out of it – more time with family, want to become a cinematographer, want to retire on a beach with lots of money…Running a business is hard work and usually requires doing more hours than you would in a job – and often it relies on you being there for the business to operate.
But if you work on having passive income and having systems then you can build a business that you are not integral to the business. This then puts you in a strong position if one day you want to sell that business. Within our little game like I said we didn’t have a great deal of time – there was 4 games being played and I think we played for 2 hours (including instructions). 2 People on my table managed to get out of the rat race in that time.
So which way forward? Click Here
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