My new goal is to get out of the rat race! (Photo taken from http://opportunityworld.biz/blog/wp-content/uploads/2008/11/cashflow101.jpeg)

I was invited by an ex-officemate “T” to join her and “C” one Saturday afternoon to play the game Cashflow at her condo. I really wanted to spend that afternoon with friends. If I remember correctly, I only wanted to catch up on stories from my former office and get a clue in some industry tsismis. Playing the game was something I did not want to take seriously. Little did I know that this simple board game would change my financial perspective forever…

What is Cashflow?

Yes, I do not deceive you when I say that Cashflow is a board game. Literal na merong board with pieces and dice and everything else. Cashflow is an offshoot of Robert Kiyosaki’s Rich Dad Poor Dad book. Think of it as Monopoly with a twist.

I felt I was a kid again. Hehehe! When I was a kid,  board games like Monopoly, Snakes and Ladders and Cluedo (my favorite!) were a cool way to pass time. Hindi pa kc uso ang computer noon e!

What is the objective of the game?

All of us were rats and our goal was to get out of the vicious cycle called the Rat Race (duh.) by earning enough passive income to exceed each one’s expenses. That’s the first goal.

Then, when you get out of the rat race, you’d be in the second stage: The Fast Track. Here, your goal would be to chase after your dream or you need to earn an additional $50,000 to your monthly cashflow.

What are the mechanics?

“C” actually did a very good job explaining the mechanics to us with her being a teacher (Hellow Teacher “C”!). It initially felt quite complicated but it really is how you managed your own money in real life.

Step 1: Pick a job.

Unlike in real life where you really get to apply to a job you at least like, you get to pick a random profession. I got to be a Policeman (este Policewoman) for the day. Each profession has a fixed monthly salary along with his/her assets and liabilities.  All of these information you get on your chosen profession card.

Step 2: Complete your game (financial) sheet

Your auditor (a.k.a. Game master) will be handing out game sheets which you will be completing. “C”, our auditor and hostess, asked us to input the information from our profession cards into the sheet.

The sheet is an income statement with your income (from monthly salary and other sources if any) as well as monthly expenses. Expenses actually depend on your profession’s stature. Blue collar workers, like “T” picked, had higher salaries plus much bigger expenses. But since I was a honorable Policeman (este Policewoman) I had a humble salary and humble expenses as well.

Aside from the income and expenses, we also had to separate our assets and liabilities. Most of us really started out with lots of liabilities (like in real life!) including credit card bills, mortgages and others. So relate na relate ka!

It also had a column for your passive income. At the start of the game, you have zero passive income. You will be earning passive income as you go along.

Step 3: Roll the dice and play!

Get the dice rolling, move your pieces forward and have fun! Hehehehe! You’d get to come across the following:

• Earn your monthly paycheck of course!
• Opportunities (both big and small) where you can take a chance and invest your money
• Doodads, meaning unexpected / unplanned needed expenses. So no escape from these!
• Charity, of course, giving back to the community
• Experience The Market, events which would make or break your investments
• Get to be Downsized…especially true for these times of Recession
• And finally, get a Baby! Baby = expenses!!! Hehehe!

We spent around 2 hours playing the game. Out of the 5 players, I was actually the 2nd one to get out of the rat race! Imagine na policeman lang ako ha! Wooohooo! Yikes parang totoong buhay ah. Hehehehehe.

Syempre, after the game, we all shared our learnings over pizza and fruit (syempre healthy balance. Hehehe!). Opportunities abound! New financial managing strategies to be applied! Exciting!

What can you learn from the game?

Of course, learnings were different for each of us depending on our past experiences and current situation. Here are the top 3 take home learnings I got:

• Expand your investment portfolio: get into mutual funds, stocks, real estate…in short, don’t put all your eggs in one basket! There’s more to earn if you put your money outside the bank.
• Take Risks. But I want to learn to get into higher risk levels. Okay realistically, medium risk. Hehehe. I am quite a segurista so I like calculated risks.
• I really, really, really, really want to get out of the rat race. I now am starting to explore ways to build on my passive income stream…Yey!

Honestly, I want to play the game again given the chance and the time (“C” when are we playing again?). I know I’d be learning more about financial management…sans the intimidating terms and calculations. The game is a fun way to introduce the concepts on a practical real life level. This is coming from a financial bobo person ah. Swear.

I know there are groups that host some games with a buy-in / entrance fee. I guess pambawi lang of the cost of the board game. I asked Hobbes and Landes and it actually costs Php 15,000! But the wais way is would to find a generous friend like “C” who would be willing to share her Cashflow board game for the learning and enjoyment of her friends.

So are you ready to play Cashflow and finally get out of the Rat Race? Hehehehe!

Live Wais-ly,

Juana B. Wais