Cashflow, every financial decision must be well thought

Last week I went to a course about ‘The Magic of Money’ and was surprised to find out that the course consisted in playing a board game named Cashflow, created by the economist Robert T. Kiyosaki, best known for his best-seller ‘Rich Dad, Poor Dad‘.

This game promises to change the way you think about money by teaching you the ways that rich people make money. After hearing this, I was – of course – very enthusiastic about playing it!

We were all given a profession, with an income, fixed expenses (such as taxes and mortgages, child costs) and cash flow, and were asked to choose a dream.

The game started in the ‘rat race’, which was our life as employees, during which we were paid our salary and presented with business opportunities, which we could invest on or not; we also had to incur unexpected expenses.

We could leave the ‘rat race’ and move into a life of financial freedom, only upon starting to make passive income (from cashflow positive properties) that exceeded our living expenses, at which point, the aim became how to purchase the selected dream.

While the game reminded me of Monopoly, I recognize that I struggled managing my balance sheet and noticed that I was more thoughtful about every financial decision.

I reached home wanting to read more about Kiyosaki and learned that his view is: ‘don’t work for money, have money work for you’. In other words, your strategy should be to generate enough cash flow from your assets/investments to cover personal expenses, so that you can get out of the ‘rat race’ and gain your financial freedom. He says that if every time that we increase our income, we incur higher expenses that do not produce passive cash flow, all what we do is to become more enslaved to our jobs.

It sounds all very simple and common sense, but it requires discipline and good sight for business opportunities…

PD: I invite you to follow me in Twitter where I will also be publishing my articles, reflections, comments and content. You can find me, as in the others social media channels, under @dortegasosa. I look forward to your participation!

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