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Wednesday, 9 February 2011

Cashflow Club - 4 February 2011

It does make a difference who you play Cashflow game with. Last time I was playing with very high energy people and game was so much FUN and everyone was rolling fast. This time I played with less experienced players, some of them being first timers, and the game was so much different, i.e. slower and with less buzz. However it didn't stop me from getting out of the Rat Race, even though it took me almost 2 hours to do it.

This time on my table there were Rupen, Bella, Madin and Dal. Dal and Bella were two first-time players on our table. Rupen started his game and after couple of turns he nearly got bankrupt, thus his energy went down and stayed low for a while. I could see this, because he wanted to quit and declared himself bankrupt. However, his will to play the game till the end eventually helped him raise his energy and after repaying his debts, he continued very well indeed. Not only that, but he also managed to get out of the Rat Race first after buying one Big Deal. Since his debts were repaid and expenses low, that one Big Deal was enough for him to get out. When I reflect on his case, I realise that it can be very much the same in real life. If one gives up in the beginning, he will never become financially independent. You have to keep your energy high in order to achieve better results!

Dal and Bella were first timers, so they struggled a bit with game's rules and the pace. Rupen and myself helped Bella with paper work and other bits and pieces to make sure she stays on track. Dal, on the other hand, managed to do everything himself, even though it took him some time to learn some basics. They were not playing full ON, hence Dal didn't get out of the Rat Race and Bella made a mess of here expenses figures. As a result, she just stopped playing, because she lost her interest. However, she still managed to accumulate substantial amounts of cash during the game, by buying and selling stocks and shares - buying low and selling high. She applied same method to a few property deals she had.

Me and Madin played fast, but due to the high expenses our progress was slow. It took us a while before we accumulated enough assets to get out of the Rat Race. I flipped a few properties enjoying the Cashflow between buying and selling them. Even though I concentrate mostly on the Cashflow itself, I still went for Capital Gains whenever I was offered good price. Someone once said "Take your profit when you can and you will never go broke". Not only didn't I go broke, I also managed to accumulate enough cash to buy one final BIg Deal, that took me out of the Rat Race. But it took me a while, because when I bought that propety, I had to borrow $50,000 from the bank, so my Expenses went sky high. So I concentrated on repaying that loan in order to get rid of $5,000 monthly interest payments. Once I reduced that debt to under $30,000 I was out! Madin had a similar game and had to accumulate a few different Small Deal properties and eventually managed to buy one Big Deal asset, that took him out of the Rat Race! When I think of it as a real life example, I realise that it takes determination and courage to keep on going towards your goal no matter what. And it's very important to pay attention to your Expenses and reduce them, because that on it's own can take you out of the Rat Race, if you have 1 or 2 cashflowing assets.

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