Passive income and the ‘cash flow’ game

Passive income is money that goes into your bank account without you having to “work” for it. It is the dream exit for many people tied to a job, who have to earn a living, giving their time for money.

Sales of your book, CD, or movie are passive income. You put in a lot of work to create something at the beginning, then you sell it over and over again with no further input. A basic but powerful concept.

This simple idea is used in Robert By Kiyosaki game ‘Cashflow’. Increase your passive income until it is more than what you earn working for someone else. Then you can quit your job and keep paying the bills!

Most of us have tried ‘Monopoly’ and either love it or hate it.

Based on buying, selling and renting properties, it is a bit basic compared to ‘Cashflow’, which has three main financial bases. These are also the buying, selling and renting of properties, but include the buying and selling of shares and the buying and selling of businesses.

Like all games, it seems overwhelming at first, but if you treat it like Monopoly on steroids, you’ll get the idea.

You move through the ‘Rat Race’ circle collecting your regular salary plus any cash flow received from the purchase of property or businesses. Every property or business you buy generates cash flow that is added to your salary.

Sometimes a property’s cash flow can be negative, meaning that it actually costs you money to maintain it, but you may have the opportunity to sell it or any property at a profit on the open market. This gives you money to invest in larger properties or businesses and increase your passive income.

Just to add a little spice, there is’Doodads‘. This is what we all fall in love with. They are toys that lose value over time and simply deplete your economic resources, such as televisions, boats, cars, etc. You will not be able to avoid them during the game.

You buy the shares on the turn of a card and the price of the shares is different for similar cards drawn by other players. You hold your actions until you or another player draws a card where your action has risen in price. Then you sell – simple!

If your passive income exceeds your salary minus expenses, get on the ‘Fast Track’. Here, you have few money worries and can buy a lot of businesses to further increase your cash flow to win the game. There are very few things stopping you from getting richer on Fast Track and the game becomes a lot simpler, especially if no one else is there to join you.

There is an advanced version of the Cashflow game called ‘Cashflow 202’ which involves financial options, short stocks and much more vicious real life dramas where you can lose all your properties in one fell swoop. Just for the enthusiastic investors this one.

Enjoy!

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