Cashflow101- How to start your own Cashflow 101 Game - Part III

Teach Your Children The Wealth Mindset

Cashflow® for Kids is designed for children from 6 to 12 years. This Cashflow® game is a fabulous introduction to wealth building strategies, and encourages children to develop a positive relationship with money that will carry into their adult lives. It's the kind of education that we all wish we'd had but most likely didn't get.

Children over ten can easily learn to play Cashflow® 101. Don't be surprised when they whiz past you on their first attempt. Most children have far fewer of those debilitating inhibitions that hamper the majority of adults.

Which doesn't mean that adults can't move beyond their limitations. The Cashflow® 101 game helps you gently overcome your old conditioning by expanding your view of what's possible. There comes a day when you've played the game a number of times and you realize, "Hey, I can DO this!" It's a pivotal moment in your wealth creation journey.

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Cashflow101- How to start your own Cashflow 101 Game - Part II

Some Additional Benefits Of Playing The Cashflow® 101 Game

Not only will Cashflow® 101 teach you some brilliant strategies for making money, but you'll also create a support team for your wealth creation dreams. Knowing a group of people who understand your ambitions and don't belittle them is a tremendous psychological boost.

Secondly, the Cashflow® 101 game opens up your mind to the possibility of joint ventures. Different people in the club will be at different stages of accumulating wealth, so you may find a partner for one of your business ideas that's been languishing through lack of funds.

Finally, you may find other players who are ready to be a 'Millionarie'. So to speak, the very 'six people you hang around the most with, will determine who you be in the future. So be careful of who you usually associate with.

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Cashflow101- How to start your own Cashflow 101 Game - Part I

Many people asked me to talk about how to start a Cashflow 101 Game, eventhough it can be found throughout the Internet. So I extracted from one of the source which I think is well-written:

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Find a Cashflow 101 club around your area, you can do it through Rich Dad's Community. If you're in Asia, you may do it through Rich Dad Asia. If there isn't a Cashflow® 101 club in your area, it's a fairly simple process to start one.

- Place an ad in your local paper. Community announcements are usually free.
- You can offer your house as a first-time venue, or book a meeting room at your local library.
- You need 4-6 players per game, so you can start with a very small group. If all the interested parties agree, you can purchase your first Cashflow® 101 game jointly. But eventually you'll want to buy your own game.
- As the club grows, find a suitable regular venue and continue placing your free monthly ads in the paper. Players can contribute a small sum to cover the costs of the venue and tea or coffee.
- Usually a sufficient number of members will have their own Cashflow® games so there'll be enough per meeting to accommodate the attending players.
- You can choose to keep the club informal, or set up a more formal structure with a committee and paid membership.

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Cashflow101- Singaporean Style

Someone ever asked me: "Why do you want to pay off ALL LIABILITIES before getting out of rat race in Cashflow101? The original Cashflow101 rules doesn't required that!"

We have to recall the last economic crisis back in 1998. Before 1998, there are a lot of millionaires who find their properties, assets
turns into liabilities overnight. The market value of most of their properties sunk below the loan they had with the bank. They then can't afford to pay up the mortgage payment and the properties was foreclosed by the back. They end up have to declare bankrupt, carry with millions of debts.

In US, upon the time when a property is foreclosed, the owner would not have to pay the short fall if the property's market value is not worth the amount owing to the bank. However, in most of the Asian countries, especially Singapore, it's not end when the property is foreclosed.

When the property is foreclosed in Singapore, the bank will immediate sell the property according to the market value. If the market value is lower than the amount owing to bank, and in most of the case it does, when the market crisis; the owner will have to pay the shortfall.

That's the reason why a lot of people end up bankrupt.

When this rules (created by Rich Dad Asia) was introduced to US, a lot of people make a lot of noices, complaining it's too hard. However, they all shut up when Rich
Dad Asia prove to them it's how easy to make it.

So for those who are so excited to be out of rat race in less than how many turns, PLEASE TAKE THIS CHALLENGE TO CLEAR YOUR LIABILITES.

Rich Dad Asia philosophy is to train a person to be RICH achieving financial freedom,not to be POOR achieving financial freedom.

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Cashflow101- Buy Low Sell High... Stock Trading

Recently I'd observed the players at Cashflow101 game I facilitated, which I found different characters of stock traders.

1 of them, I called him Danny, buy at a low price of $5 OK4U stocks at 1,000 unit in Cashflow101, after a few turns, some other players flip a $30 OK4U card. When I announce to everyone that according to the card, everyone who hold this stock may sell now. Danny refused to sell. I asked him why, he told me that he's waiting the stock to the peak of S$40, as indicated in the card: Trading range: $5 to $40. hmm... when it's peak... I said to myself...

So there's another lady, I called her Betty, she also bought at $5 X 1,000 unit, and she choose to sell at $30. So she gets $30,000, while Danny is still holding the stock.

Immediate after the Betty's turn, another stock card MYT4U $1 is out. Betty is able to buy 30,000 unit at $1, while Danny is still awaiting for his OK4U $40 to comes...

After a few more rounds, Danny finally got to sell his OK4U at $50, and he got $50,000 in cash. But then, by now, Betty already have millions. "How....?" you may ask.

For those who might not know, it's because Betty got to sell her MYT4U at $20, and she got $600,000. Soon after she sold off her MYT4U, she manage to get into another OK4U at $10, by buying 60,000 units and she sold at $50, and got how much? yes, it's $3 million.

The moral of the story is, instead of waiting the highest price, a professional set exit strategy on when he/she is getting out of it. Not to be greedy. and move his/her money as fast as possible.

That's true to the real stock market, nobody know when is the peak, so before buying the stock, a professional already have in mind when he want his money out. As long as he make, he will disciplinarily out, and he mean it.

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Cashflow101- How do you get these deals in real life?

There are commonly question ask about how to apply the Cashflow101 to real life:

I know Cashflow101 is simulated to show you what to do? But as far as whom to start talking to about deals similar to these? That's where my wife and I are stuck. The game is fun and I have started to kick butt. But I want to stop doing it in the Cashflow101 game world and do it in the real world... Can anyone tell me how?

Believe it! -- Rdasia

The game is to make you realise the possibility in the real world. Too many people see others growing rich as in the game and don't believe it can happen to them too.Many people even when the opportunity come knocking at their door step just turn it away. By playing the game they realise the possibility is there and if it can happen to them in the game than it can happen in their real life. For most people their mind tense to reject thing that they can't see or touch..So the game built the reality into their mind. Start looking around and built new group of friends and happy searching for your opportunity.

LEARN TO PLAY THE GAME FROM THE RIGHT PEOPLE -- Richkidasia

Find those who successfully apply the game into real life and achieve financial freedom. Listen to them, learn from them, that's the ONLY key. If you only play the game with someone who is not better than you, you won't be able to improve yourself.
If you hang out with peoples who only treat this as a game, you won't be able to apply it to real life. Trust me.

Make It Real! -- Erik W

Here is another suggestion:
Compile your own financial statement (if you have not already) and use that information to play the game. This not only shows you that you can accomplish it with what you actually have, but also helps to "raise your lid" on your own thinking by demonstrating that you may be limiting your own abilities by your current thinking.

Next, I recommend reading "The ABC's of Real Estate Investing" by Ken McElroy (Rich Dad advisor) and; of course; Rich Dad, Poor Dad by Robert Kiyosaki. These not only help you gain a good foundation in your financial education, but also reinforce what you have already been learning from the game. They will go into enough depth of principles to give you a better grasp on the concepts behind the game itself.
Please realize that many people mistakenly jump into real estate after playing this game without having a good grounding in a financial education that could have kept them from blundering into common traps that are in the market. Look at the cards on the game: discover exactly how the ROI was determined, discover exactly how the positive/negative cashflow was determined. Finally, as described by Rich Dad, you MUST discover and establish your WHY. Set your goals and write them down. Remember that you WILL make mistakes along the way.
That is okay to do as long as you learn from them and thus not repeat them. Keep a positive attitude!
You can do this!

Personally, I had successfully applied the strategies I'd learned in Cashflow101 into my own reality, after Cashflow101 was introduced to me. I have to thanked to Rich Dad Asia who guided me and giving me the opportunities to learn from them, whom successfully make Cashflow101 real. I had given opportunities like, 15% (or higher) annual return investment, $1 OK4U stock, seed funding, private placement Pre-IPO and many more. I understand that as a student, I still have many more to learn from them.

As a personal sharing, I therefore agree with Richkidasia, "Find those who successfully apply the game into real life and achieve financial freedom. Listen to them, learn from them, that's the ONLY key". The only key for an ordinary people like me to move myself to success.

Cheers,

Seaway

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Cashflow101- Any example of charity and starter house in real life?

By looking the charity box in Cashflow101, does any one know an example about charity in real life? how it works? And how about government starter house?

The discovery of charity. What does it mean in real life?
--by Erik W
Why did Robert Kiyosaki put it in the Cashflow101 game?

I believe the answer to these questions lie within each of us that pursue God's will. My view on this is clearly reinforced in Robert Kiyosaki's book, Retire Young Retire Rich. He explains how his rich dad taught him that one of the most important things that building wealth can do is to provide the ability to give back. Rich dad was very adamant about this and felt it was more a responsibility than merely an ability to do so. Robert Kiyosaki also mentions in another of his books that he also discovered that "giving purely for the intent of receiving" resulted in the opposite effect of what he was after. Lesson learned? Giving while expecting something in return ...is not giving at all! So what was he missing here?

Rich dad understood that the Bible calls us to give back a portion of that which we have received and that this is a very necessary part of wealth-building and that it can be measured in far more important ways than the amount of money we receive. As a "religious man," rich dad understood the Christian principles in the Bible that instruct us that giving purely with a heart intent on helping others does not go unnoticed by God, nor does it go unrewarded.
Being a good person, by most people's definition, is treating other people the way that you yourself wish to be treated. My father always taught, "Do the right thing...and do it for the right reasons." Do you remember growing up and doing something nice for someone...somebody noticed and you were complimented for it? Didn't it feel great? Was your action taken purely to gain praise? For your sake, I hope the answer is a resounding "No." Hopefully, you were just exhibiting kindness and concern for the other person.

It is not a coincidence that "Charity" is in Cashflow 101. It helps to teach us that not only is it important to give to others purely for the sake of giving...i.e.: without the expectation of receiving, but that by doing so we will be rewarded for it accordingly. It is also important to note that not all reward will be financial, but certainly to a betterment of your life. While in the game, the reward is automatic and consistent... in real life is in direct correlation with the intent of your heart for the giving.

Charity is about giving. -- RDasia.
What you sow what you get is similar to what you give what you get in return. Give a smile you get a smile in return Sure way to get a punch from someone is to give a piunch. So you want more MONEY give more Money.


The power of charity -- Richkidasia
Charity may not be in money form. Some wealthy people, like my mentors always shares their knowledge and effort to help and teach countless people about financial literacy.
They told me whatever you've done, the universe is always watching. So everytime they have done something in charity, the unverse give them back from their investment. It is amazing!

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Cashflow101- Certificate of deposit and Preferred Stock??

There are some commonly asked questions about Certificate of Deposit and Preferred Stock in Cashflow101:

I don't understand how Certificate of Deposits and Preferred Stocks in Cashflow101 work....the instructions are not helping. Can anyone explain to me how I go about buying and how to enter it on my Cashflow101 financial statement? It's probably simple but I just don't understand! Thanks!!

Here are the answers from my friend richkidasia:

Looking at the Yield or ROI of either CD (Certificate of Deposit) and 2BigPower (Preferred Stock), it seems slow right?

FYI, For CD, your investment per unit is $4k (or $5k), and you only get $20.00 per month, 6% (or 4.8%) ROI. For 2BigPower, you pay $1,200, and you get $10 per month, little higher, 10%. In comparison to real estate, or other paper assets, you might think "it really seems low, i will give it up."

Wait a minute, it depends on WHEN you buy this 2 paper assets.

If the card appear in the very early stage of the game, while you doesn't have much cash on hand. It indeed is not helpful.

BUT THINK OF, what if it apprear when you have millions, or even billions dollars on hand! let say you have $1.2 million to buy 1,000 unit Preferred Stock, it will give you ($20 X 1,000) = $20,000 PASSIVE INCOME, without incurring any liabilities. Imagine you have much more cash, how much is the multiplier?

Let's look at CD, it said it's redeemable anytime after purchase, so if you currently doesn't have any better asset to buy, you may buy CD, once you found better opportunity, you may withdraw the cash and invest into your desired asset. Doesn't it sounds great of its liquidity? All this strategies are just a very simple mathematic, which I learn from Rich Dad Asia. And there are some much more strategies, you may hop into their Website: http://www.richdadasia.com/ to find out more.

Cheers
Richkidasia

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Cashflow101- Paying off Bank Loans- Part II

Question:

I have also concerned while playing the E-Game. I understand the previous explanation of the repayment of the mortgage loans. But, for the cashflow to be always in excess of $100, that would mean that either the rent on these properties is REALLY high, or the mortgage montlhy payments are REALLY low, if it is to be tallied with other expenses associated with rental properties, e.g. tax, insurance, maintainance, etc. So, I am still not too clear on that.

Also, none of the other loans reduce even when you are paying back monthly installments. For a loan of $2000 from the bank, I would expect that after passing the paycheck more than 10 times I would have already paid back the interest on the loan, and started to repay the principal. I have noticed people spending hours on the ratrace, and still small principals remain the same. Is this intentionally done to keep the game simple, or is it something that I am missing?

I would really appreciate some clarification. Thanks guys.

Andrew

Answer from richkidasia:

Hi Andrew,

To answer your 1st question, no matter the rent is high, or the mortgage is low, what matters is the property is producing + or – Cashflow. Usually an investor cares more about the bottom line, instead of how the bottom line is get. E.g. if I'm want to switch on the electric light, I won't have to understand how the circuit is design and how the electricity go through the wire, all I care is where is the switch and press it.

The bank loan carries monthly interest of 10%, i.e. when you borrow $2,000, the bank loan payment (take note! It's only interest) is $200. So no matter how many times you have passed the paycheck, the principal doesn't reduce, until you start to pay the sum of $2,000.

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Cashflow101- Paying off Bank Loans

There are commonly question ask about paying off bank loans in the Cash flow 101:

Hi there, Can anyone please help me understand paying off your bank loan for a real estate property. I get the part about where to put everything on the Game Card. I'm basing this on having just bought the property.

eg: Balance Sheet
Condo Down Pay: 4,000 Cost: 40.000 Mortgage: 36,000 Income Statement Condo Cashflow: 140

This is where it gets me, because aren't you supposed to put the bank loan payment in as well? To keep my total expenses down, wouldn't I have keep paying off my bank loan? And wouldn't this in turn lessen my mortgage amount in the liabilities column? Really going round in circles here, cause I looked in the rules book for cashflow 101 at their example. Just doesn't sit right. Help!

There are some answers from the others:

You only have to record a bank loan in your liabilities and expense columns if you don't have enough cash to make the down payment in the game with the cash that you have on hand.

So, as an example, let's say that you only have $3,000 in cash and you want to buy the deal. You would have to take a $1,000 bank loan and add $100 to your expense column.

But I think the following answer explained more in details:

I think you're asking 2 questions:

1) Why there is no bank loan payment while there is a mortgage attach with the property?

2) Why the mortgage loan is not reduce along the way?

Answers:

1) first you need to understand the property you bought, Why the card say Cashflow +$140, why it don't say "income +$140" or "rental +$140"? why cashflow?

Cashflow means income minus expenses. so in this case for the real property, it is a net profit you get from this property after deduction of mortgage payment (and some other misc expenses). therefore you don't have to worry about adding bank loan payment, btw we don't call this bank loan, we call it mortgage loan as it is secured with the property you bought.

2) now comes to why the loan is not reduced after month by month you are paying the loan. If you buy property in real life, you will start to realise in the 1st 10 (maybe even more) years, you are not repaying the principal of the loan. You're just repaying the interest. so your principal amount wouldn't change. Furthermore, to simplify the process of CASHFLOW game, you don't have to care about the loan reduction every month. if you want to get rid of your mortgage loan from investment property, you just have to pay it off for the whole sum. but sad to say, your cashflow from this property doesn't change.

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Cashflow101- Best Cashfllow 101 Game Tips … from Rich Dad's Global Community

This post is basically for the 1st timer of CASHFLOW 101, which I extracted from Richdad.com

Hats off to Rich Dad gamers around the world! Below are some shared game tips that inspire us to “learn by doing.”

TIP#1 Never… Ever… Quit
I believe that there are many things to understand to succeed at the game. But, for me, the most important is: NEVER, EVER, EVER, EVER QUIT -- ON YOURSELF! No matter how you feel, NEVER QUIT! - Kathleen M

TIP#2 Step Out Of Your Comfort Zone
Cashflow 101 is so powerful because it reflects your true behavior and allows you to take risks in a safe environment. Step out of your comofrt zone, and do things you may not feel comfortable doing in the “real world.” you'll be aazed at how it changes your perspective. - Jack N

TIP#3 Celebrate the Joy of Success
The biggest ‘tip’ I have learned so far is that your way to wealth is the joy - not the wealth - you achieve. This became very clear to me after playing dozens of times and realizing that I would actually SKIP the Dreams on the Fast Track! I was more interest in wining the game than ‘golfing around the world.’

TIP#4 Focus on Your Goals
I found that while playing the game, I would focus on the ‘negative’ spaces - “Baby” or “Downsized” - and hope not to land there. I was focusing specially on what I didn't want, and oddly enough, landing on those spaces most often. I began to repeat the numbers I WANTED to have come up, and just as addly, those numbers seemed to come up more than mere chance would support. The lesson is simple: focus on your goals, not on what may go wrong. - Hugh C

TIP#5 Only Take Advice from Successful People
When the Opportunity Card comes up, some people look to fellow players for guidance. Make sure that those you take advice from are having success and on their way to getting out of the Rat Race! - Cal J

TIP#6 Your works are your reality.
Never Say “Can't”There is ALWAYS a way. Think outside the box. Find a way to make your “can't” a “can”. - Grace N

TIP#7 Take Note of Your Overall Habits
After playing the game, take not of your overall habits - good and bad. Evaluate how those habits helped or hindered your game play. In the next game, make a concerted effort to change the habits that may have prevented you from getting out of the Rat Race. - Toni E

TIP#8 Get Rid of Bad Debt.
The thing that has expedited my exit from the Rat Race: Paying off ‘bad debt.’ - Bridget S

TIP#9 Create Your Own Rules
Creating your own rules (or modifying the game rules) can make CASHFLOW 101 more challenging. For instance, play a game where you and your teammates: (a) pass on purchasing $1 or $5 stock deals; (b) remove $0 down real estate transactionl (c) remove all the doodad cards that are $100 or less. - Dylan B

TIP#10: Don't Limit Yourself
Along with bad debt, there is good debt. Don't limit yourself to your cash-on-hand. The lower the price of the stock, the more money you should borrow. When you eventually sell your shares, your rate of return will more than make up for any bank payments you have to make. - Roosevelt C



TIP#11 Give Back
Giving back is a necessary step in getting out of the Rate Race, Newton's law states, “For every action there is a reaction.” give and you shall receive. - Lisa N

TIP#12 Put Your Ego on the Shelf
The game has showed me something about myself I never would have guessed- like the fact that my ego gets me in more trouble than anything else. The deals you turn down count just as much as the deals you make. Don’t let your ego get you in over your head. - Tami R

TIP#13 Be Able to Make Quick Decisions.
As Robert says, “Fortune favors the prepared mind.” When the Opportunity Card comes up, you need to be able to determine if it is a good or bad deal quickly. Otherwise, just like tin the ‘real world’, you might miss a great opportunity. - Phil L

TIP#14 Learn From Your Mistakes
Mistakes are opportunities to learn something new. Take risk, make mistakes… and be smarter fro it! - George C

TIP#15 Give Feedback to Fellow Players, Not Advice.
Feedback occurs after the action, advice happens before the action .Your fellow players will learn more if you tell them what they did and how they might try a different approach next time, rather than telling them what to do and how to do it. - John D

TIP#16 Reinvest Your Cash
Don't let it sit there doing nothing… get your money working for you so you can get out of the Rate Race! - Jenny M

TIP#17 Learn From Others
Take note of fellow players' winning game strategies. Next time, test them out for yourself - Cheridan S

TIP#18 Overcome Fear
Fear isn't the problem; it's how you handle fear: specifically, the fear of losing money. Losers are defeated by failure. Winners are inspired by it. - Jorge T

TIP#19 Always Look for Opportunities.
No matter where you are in the game… always be on the lookout for opportunities. - Elle J

TIP#20 Reflect on Lessons Learned.
Always think about what you can learn from the game you just played. You may not always have time to reflect on the game as it is played (and sometimes it is more interesting NOT to play, but to just observe!), but you should always take time later to think about the game and what it taught you. This is part of the educational process and so it should be savored. You can learn a lot about how investing works, how well your investment strategies pay off, and what it takes to exit the real Rat Race. - Dave G

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Cashflow101- Introduction

Cashflow101 is a financial education board game that teaches financial management, money management, investment and basic accounting skills; and how Rich Dad teaches their children on investment and cashflow. Cashflow101 was invented by Robert Kiyosaki, the best-selling author of Rich Dad Poor Dad, to increase your financial intelligence. Rich Dad Poor Dad is the true story of Mr. Robert Kiyosaki himself about how his best friend's dad: his 'Rich Dad' affected him in his journey to seek financial freedom, and how his Rich Dad opposite opinion about money compares to his Poor Dad, his own dad.

By using a simple financial statement for each player, you will be able to learn how to get rich and gain financial freedom. The board game reflects the player's personalities and the way the player handles money.

Cashflow101 was introduced to me through a financial education workshop I'd attended in 2004, organized by Rich Dad Asia. I had played cash flow game about 2 years, each time I played the game, I learned different lessons. However, after I'd been trained by Rich Dad Asia to be a facilitator of the game, I find out merely being a player, my learning is limited. Being a facilitator, I started to see things I couldn't see while I'm a player.

My highest score to achieve passive income in the rat race was around $3 million monthly, which turns into cash flow day income in the fast track of $300 million. I'm now trying to maintain this score each time I played cashflow101 game.

Now, I'd like to share with you different strategies to not just achieving financial freedom, but to be a multi millionaire, or even billionaire!

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