Fears & where to start!

Kia Ora,

Was to write this earlier but an old army buddy insisted we play CashFlow so he can try & understand what I am talking about. Until now I have resisted as talking to him I know his mindset is not mine or that of a person that wants financial education.

First thing he struggled with was when I said to him, "if you own your own house then it is not likely to be an asset". Anyone who has read Rich Dad Poor Dad will recognize that one. It goes against the generally held principle that your house, car or what ever is an asset. Why? Because that is what the bank tells you. The bank tells people that because when they loan against it or to buy it, it is their asset.

An asset is something that puts money in your pocket, in particular if it has also covered all expenses associated with the debt (Good debt).

During the game it became quite obvious that my mate's biggest issue was fear of debt. To get out of the rat race (the inner circle of the game) I had to repeatedly tell him to stop concentrating of paying off his debt & instead use good debt to create passive income. Finally some pennies dropped & he got out then won if you can really win this game.

Anyone who has played the game of CashFlow more than a couple of times will tell you that someone with a small income (& therefore expenses) should in most cases beat the high earning professions. In this game my mate had all the advantages, apart from knowledge, & I watched him squander $100,000 plus by taking a financially poor path despite giving him advice.

What he was doing though is what most of us are bought up to believe is the right path. Pay off your debt as quickly as possible. When in fact we should be using good debt (that which assists to create the cash flow) to get ahead.

I am not sure if we will play again as the whole game goes against his reality. Though in the current environment I have found it a struggle to even find a lender who understands this concept, it is the path of riches.

Right at this point in history it maybe one taken with caution, but carried out correctly it will work. Right now with banks & lenders not playing ball, due to study I have carried out I am taking the path of gold & silver. In this strategy I am holding in for capital gains so I then can I can enter into the cash flow game for real, in the mean time I am looking at ways to create cash flow to allow me to succeed in that course.

With any action though those taking the action must do their checks or due diligence. That doesn't mean you don't take action as making mistakes is the way we learn.

The Game of CashFlow allows you to change your mindset & make mistakes prior to putting real money on the table. Cash Flow clubs are found all over the world or you can just play monopoly. Cash Flow is often reffered to as Monopoly on steriods.