If, like many people, you harbour a dream to quit your fulltime job and set up your own business, or become a freelancer working the hours you choose to work, you’ll be faced with the same question as everyone else – when? When do you do it? When do you make the plunge and quit your job?
If you do it too early you could run out of money and be unable to pay your bills. This could lead to you going hungry, having the car repossessed, being evicted from your home or, worst of all, having to go back to your previous job!
If you do it too late you may never do it at all.
Quitting your job and losing that guaranteed income for a chance at being your own boss is a big gamble. This is where the board game Cashflow 101 comes in.
The game was invented by Robert Kiyosaki, the author behind such business books as Rich Dad Poor Dad, and it teaches you how to turn your money into cash flow, building up your business, stock and property portfolio, so that you’re able to quit your job and become a fulltime entrepreneur.
At this point you might be thinking how does a game help with that? It’s true, it is just a board game and, as such, has limited rules for the possible outcomes of each investment you can make within the game. What the game teaches you, however, is to change your attitude towards money.
Have you ever wondered why so many lottery winners end up squandering their money and going back to where they started? It’s the ‘spending’ mentality most people have. When they get a windfall they spend it on something that won’t earn any money in return, such as a new car or a holiday. The select few, the entrepreneurs, invest the money on something that will either generate a large capital return, or will generate monthly cash flow in the form of passive income – the name of the game.
Passive income can be derived from things such as rental properties, or investments in a business. They usually require capital to fund but, once the money has been spent, they should return a profit on your investment.
Buying a new TV, a new car or an expensive yacht might make you feel good but it won’t help your overall goal of becoming successful and, in the game, it’s definitely a bad thing. Items such as these are called ‘doodads’. They don’t earn you money, they only cost you money. As you’re trying to increase your cash flow by growing your passive income, buying a new yacht reduces your cash flow, thus reducing your chances of winning the game.
This is the attitude you need to carry across into real life. Don’t be a spender, be an investor. The more you can invest to generate passive income, the less reliant on your actual job you’ll become. Once your passive income from your investments surpasses your monthly outgoings, you will no longer need your job and you can quit to become a fulltime entrepreneur.
Am I talking about the board game here, or about real life?
That’s the beauty of the game. It teaches you via practical examples and gameplay how to become an entrepreneur and when to quit your job. By playing the game on a regular basis, your attitude towards money will change for the better. You’ll see an offer for a new TV or a car and, instead of thinking “that’ll only cost me £200 per month” you’ll say “that’s -£200 per month cash flow”.
Have a look at what Robert Kiyosaki himself says about the game:
The game is hard to get hold of in the UK but, luckily, there are often listings for it on eBay. It tends to go for anywhere between £50 and £100 new, and is definitely worth getting if you’re serious about becoming an entrepreneur. It’s also a great game to buy if you already have the right attitude towards money and you’d like to teach your children the same values.
We try to play the game as often as we can, and have upgraded to the next version of the game – Cashflow 202. This is an expansion pack with more detail, but still requires the original game in order to play. You’re also advised to play the original game several times before you tackle Cashflow 202.
As the game is a rare bird in the UK, you’ll also find there are regular clubs around the UK where people get together to play regularly. If you’re serious about quitting your job and going into business for yourself, one of these would be worth a look too.