Arts Entertainments

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 of many people tied to a job, who have to earn a living, sacrificing their time for money.

Sales of your book, CD or movie are passive income. You work hard to create something at first, 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 Cash flow game. To 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 supports. These are also the purchase, sale and rental of property, but include the purchase and sale of shares and the purchase and sale of companies.

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

You move around the ‘Rat Race’ circle collecting your regular salary plus any cash flow received from property or business purchases. Each property or business you buy generates cash flow that is added to your salary.

Sometimes a property’s cash flow can be negative, meaning 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 to increase your passive income.

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

You buy the shares on a card’s turn and the share price is different on similar cards other players draw. You keep your shares until you or another player draws a card on which your share has risen in price. So you sell – simple!

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

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

Enjoy!

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