Eventually he did own his own hotel right on the beach-and then a few more. He built his fortune from the ground up, starting with some small stores and moving into more and more sophisticated investments. My rich dad didn't just play Monopoly with us on his sunny patio. In Monopoly, just like in real life, those who hoard cash and never invest it in properties are those who lose the game.
Rich dad poor dad cashflow chart plus#
The value of the dollar thanks to inflation is near zero over the last hundred plus years. In order for money to keep generating value, it must move into assets that in turn create more money, both through cash flow and through appreciation.īut this is not a new phenomenon. Each day you sit on your money, it is worth less and less. This should be obvious to you these days since we’re facing record inflation. If you sit on your money, it eventually dies. The word currency is derived from the word current. One of the most important lessons you learn from the game of Monopoly is that money-as it exists today-is really a currency. It's a simple game, but an important lesson. Basically, more green houses and red hotels means more cash flow. In order to make more money, you develop and improve those properties, building houses and, eventually, hotels.įor example, having one green house on a property you own could make you $10 when someone lands on it. You purchase property, balancing cost and location, and collect rents when people land on your properties. This one great formula rich dad spoke of was that of cash flow. Rich dad told us that, "One of the great formulas for wealth is found in Monopoly: four green houses, one red hotel." I don't really have a horse in the race when it comes to Monopoly game pieces, but this little piece of news did bring up some fond memories of playing the game with my best friend, Mike, and his dad, my rich dad. They opened public voting on what piece to remove in order to make room for more modern game pieces "like the hashtag, the wireless phone, and the rubber duck." After four million votes, the thimble was gone-and everyone is still trying to figure out why a rubber duck would be considered more modern. Of course, it's not really Hasbro that made the decision. Assets contributes more earning and improve their cash flow chart.A few years ago, Hasbro announced that they were removing the classic thimble game piece from the popular board game. They might get into deeper debt, but at the same time the debt is being used to acquire justifiably greater assets.
Rich dad poor dad cashflow chart how to#
some ultra rich know how to use the leverage of good debt.they save a lot from every paycheck which is normally invested, in the area they are familiar of, probably in their own businesses.
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