Hello Wealth Heights Family!
The past week, I played a bit of Monopoly with my family. For those who do not know the board game, it is a real estate investment game. Highly recommend. Essentially, to win Monopoly you have to make the most money and be the last player standing as others became broke. To do this, you own properties and collect its’ rents. Although the game brings in both laughter and frustration, there are also a lot of lessons and wisdom which can be learnt and applied from this simple, family game. How? Read on to find 3 of these valuable lessons, providing you with Monopoly Wisdom for Financial Freedom!
1- CASH FLOW
One of the main reasons why my family members lost Monopoly, was because of their cash flow management. They were spending more (cash outflow) than they were receiving/generating (cash inflow) and eventually, they became bankrupt despite owning assets (properties).
For financial management, be it personal or business-related, success comes from the possession of sufficient cash at all times, which means your cash inflow needs to be greater than your cash outflow. This applies to every aspect of finance, business or real-estate or stock investment. Investors use cashflow as a measure of the company’s financial stremgth as it evaluates whether the company has enough cash to pay their expenses and whether they will have enough cash to withstand crises. Companies such as Microsoft (MSFT), Apple (APPL) or Johnson & Johnson (JNJ) are considered as cash flow “monsters” because of their growth in cash flow.
2- “YOUR CURRENT SITUATION DOES NOT DETERMINE YOUR FUTURE”
Wise words from Tony Robbins, and very applicable. Myself and my youngest son had a terrible start to the game… we owned at most 1 or 2 properties, and kept losing money to either rent or those “chance” cards. The rest of my family were stacking up on properties and cash; they were off to a great start. At the start it seemed as if my son and I were destined to lose, but funnily enough, we were the last ones standing. No matter your current financial status, you can change it through your determination and perseverence. There are many examples of current-day billionaires who started off with nothing and through investment, either real estate or stocks, became who they are now; Robert Kiyosaki being one of them. Stay tuned to next weeks article to learn how to invest in real estate with little money.
3- EARLY INVESTMENT
In Monopoly, investing early (purchasing assets) is what will keep you in the game longer than those who don’t. The same is applied in real life, even if the investments are small, early investment results in compounding returns. Over time, the amount and value of money increases, easing your way through the financial world and enabling you to reach your financial goals. Generally, the earlier you start investing the easier it is to build wealth no matter the amount you start with. As we saw with our previous article (Buy Low, Sell High Mindset), the stock market trend on the longterm is upwards, meaning over time, your money should follow the same trend and grow. So start now, book your course with Wealth Heights, and win your Monopoly game of life.
As previously mentioned, this Monopoly Wisdom for Financial Freedom an be applied to real life and we will look at its’ application more in depth next week. We will look at how you can invest in real estate with little money and reach Financial Freedom.
Want to win the Monopoly game of life? Book your course with Wealth Heights here, we will provide you with the knowledge and skills required to invest in the Stock Market, Real Estate, Gold, Bonds, Crowd-Funding and Peer-to-Peer. These will unlock pathways to your Financial Freedom. Otherwise, join the Wealth Heights Family and sign up to our FREE weekly newsletter here. You will receive a free e-book on “4 Steps That Doubled My Money,” as well as financial insights, tips and tricks.
READY TO WIN THE MONOPOLY GAME OF LIFE AND ATTAIN FINANCIAL FREEDOM?