The key to FINANCIAL FREEDOM is the ability to convert active income (salary) into passive income (rental income, dividends, interest, royalties, online recurring products…)
Now, you may ask why do poor and middle class struggle? It’s because they don’t buy assets. All they have is the job, pay rent, taxes and other expenses. But the main problem is that they haven’t been told. No school teaches you how to save and multiply the money and become financially free. All they have been taught is go to school, get a job, buy home, buy car and that’s it. This way they fell on the trap of rat race being in big dept.
The same happen to me, finished the college on computer science, got a job, and finally all the money I was making from the salary I was spending to the rent, food, clothing, and buying other things, until i came to read the book of Robert Kiyosaki named “Rich Dad Poor Dad”.
You can find the book just by searching on google “rich dad poor dad free pdf download”
The book has been a game changer for me. Taught me how the money works, how to spend the money, how to create passive income wisely. And best of it was it helped learn How Money Works Playing Cashflow Game
In this book you’ll learn how Income Statement and Balance Sheet interact to each other. It gives you lots of options to play and the key here is to grow and create your asset column to the point that exceeds your monthly expenses. Once you accomplish this you’re out of RAT RACE.
Now you may ask, why learning how money works through the game? Because the game teaches you what books can’t. For example, you can never learn how to drive a car only by reading a book. You got to practically get into the car with the instructor when you’re driving for the first and start practicing. That’s why the game is for. When you get good at the game they you’re ready to real passive income. Now let’s get into
How To Play The Cash-Flow Game
To play cashflow game go to www.richdad.com
and create an account. Once you have created go to App & Games menu, then select Cashflow Classic sub menu as shown in the figure below:
And follow the steps to start playing the game.
Identify yourself with the name and password and click the number 1, so you will be playing only by yourself because it’s the beginning and you want to learn the basics. When you get good, then you can join other players around the World and play with them.
On the left side of the board game you have button named “Financial Statement”. Please click on that button.
Let’s asses the current game situation by reading the 4 statements as shown in the figure below:
INCOME – shows the money you get paid monthly as an policy officer of $3,000
EXPENSES – shows the money you spend during the month where you have to pay taxes ($580), home mortgage ($400), car loan payment ($100), credit card payment ($60), retail payment ($50), other expenses ($690). The total sum of expenses is $580+$400+$100+$60+$50+$690 = $1,880
ASSETS – you have no assets at all
LIABILITIES – where you home mortgage liability ($46,000), car loans liability ($5,000), credit cards liability ($2,000), retail dept liability ($1,000).
Finally the cash you have currently is $520 and the payday is $1,120 when you subtract the expenses from income. The goal is to create passive income streams that pays for expenses and have enough left-over money to buy more assets that pays more money.
I played the game myself which you will see in the video below and as a final result I created a total passive income of $3860, and my payday or monthly money I get is $5,430 as shown in this figure.
And below is the video how I played the game. I didn’t speak as I was making the video but as you go through the game by yourself, you will understand the process.
In the beginning you might find struggling yourself how to play the game. But read the task carefully and start playing the game. Don’t be disappointed if you lose, because that means you are learning how to win the money game.
In our real scenario we’re not going to invest money on stocks and bonds, but we are going to use online opportunities where you can make money online through recurring digital products which are going to be your primary income that pays for your expenses and with left over money, you can invest again for new online assets that pays even more money. Below is a figure of one of my accounts that have where I get paid once a threshold is $100. I get paid almost every month around $115.
Now imagine yourself, having 15 accounts that pays you $100 minimum and that is $1500. I believe that would be very helpful for your finances. At the step 3 I’ll list all the digital products that pay recurring revenue that you can promote. Also at step 3 you will learn also how to promote products even if you have no marketing and computer skills at all.
If you read this far, congratulations, you have learned a lot and you’re ahead of many people who have no clue how money works and how to get out of rat race.
In this report you have learned:
- What is an income, expense, asset, liability
- Why rich people become richer and poor people become poorer
- What does it mean to become financially free and what is rat race
- Why learning how money works through the game it’s important
- How to play the CASHFLOW classic game to become financially free
There are three tasks I encourage you to do:
- Open an account with www.richdad.com and start playing the game to learn how money works and how to create passive income streams.
- Read the book “Rich Dad Poor Dad” because there is lots of stuff you want to know. You’ll have fun reading it. You can find the book on google just be searching “rich dad poor dad pdf free download” if you don’t have money to buy on Amazon or somewhere else.
- While you learn the how to play cashflow game, you can start with the Step 2, how to use the RPM (Rapid Planning Method) To Achieve Your Goals Fast And Easy by clicking the button below.