Cashflow 101 e-Game

It's my second night playing the Cashflow 101 e-Game. And till last night, it's still hard for me to get out of the rat race. But I'm learning.

First, you have to choose a dream (this will be your goal). The computer will assign a profession to you. Robert Kiosaki says that no matter what your job is, you can get out of the rat race easily if you know how to manage your cashflow.

There's an income statement, expenses, assets and liabilities. When i saw it, the first thing that comes to my mind is that it's an accountant thing (doing all the balance sheet or whatever you call it); and i have to recall my Accounting 101. But as you go on with the game, you just have to drag the particular item to the appropriate box or sheet. The cashflow goes to the income statement. The bank loan payment goes to the expenses. Mortgage goes to the liability. The real estate property's downpayment and cost and the stock investment goes to the asset. Your mentor will tell you if something is misplaced.

Here are my impressions on the game:

1. For you to have a passive income you have to invest on the real estate property which you bought on a good deal. It should have a nice tenants. Low maintenance. Bank loan is OK if it has a good cash flow which will be added on you income statement.

2. If you had a bad investment which gives you negative cash flow, especially on real estate, you will be dependent on bank loans until you are bankrupt. If you survived bankruptcy, you will loose 3 turns. But if you get bankrupt again, you will be out of the game.

3. On stock investments, you have to buy low and sell high. But you still have no gain on this until you sell your shares. For example, if the stock's trading range per share is $5 to $40 and the current value is $1 or $5, it's a good things that you buy a lot of it and wait until an opportunity to sell it on a high price comes (let's say at $40!). That will give you a very good return. There are some instances that the market is down for a long period and you can't sell it. There are also some instances where in there's a change in the market that will have an effect on your investments. (I still don't understand this one. hehehe)

4. I hate doodads! These are expenses that you cannot avoid. Dinner with family and friends. Your child's braces for $200. Change of tires. Shopping spree. Wew! You have to pay it in cash or charge it on your credit card. As much as possible, I pay it in cash. (In real life, I have a lot of doodads. hehehe.)

5. If you have enough passive income, you'll be out of the rat race. And on the fast track, you can have other investments to add to your income. Beware! There are also some mishap, like divorce, wherein you will loose all your cash on hand (even if it's a million! ouch!). But if you have a good cashflow you will recover from this the soonest possible time.

The game ends when a player has able to avail the dream he has chosen at the start of the game. There's a ranking. If you're the last player to get your dream, you loose.

This is really fun. I still have to learn a lot. I have to determine which are good investments and which are not. Try it!

:D