Now, consider a CEO who’s salary is $50,000 per month. So, if a janitor makes $1,200 per month, he only needs $1,200 of passive income to retire. Retirement, or financial freedom, is defined as passive income being greater than monthly expenses. If you suggest that it is easier to retire on a janitor’s salary than on a CEO’s, people will look at you like you are crazy. This is the exact opposite of the way that most people think about active income.
It allows us to absorb new knowledge and grow faster.Īnother interesting thing about the game is that it teaches us that the lower our salary, the easier it is to retire. Interaction through games allows us to process what we a learning on a deeper level. Reading books and listening to CD’s is good, but it is even better to interact. I think a game like Cashflow is a good way to change this. Their employer is in a strong financial position, but they are loaded up with debt. They make sure that their company is running a positive cash flow, but they use credit cards to buy whatever they want for themselves. I have heard many stories about accountants and CFO’s who are great at managing their client’s and their employer’s finances, but act completely differently with their own money.
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So, when we learn how to play a game better, it changes the way we act in life. We automatically play games the way we play life. Many people like to write off games as a waste of time, but they are actually a powerful learning tool. I like Cashflow because it actually teaches people about how to manage their finances. Then you should be able to play the Cashflow game for free. If you don’t have an account on the site, go to the homepage and create one.
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Update – I didn’t find the link on the home page, but you can get to the game here. Just go to the Rich Dad site and click on Cashflow. After playing Cashflow 101 and 102 for a few years now, I was pleasantly surprised to find out that you can actually play for free, online.
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