CASHFLOW BOARD GAME

Unrealistic Elements

Rich Dad’s Cashflow Board Game try to teach you the fundamentals of financial literacy that helps you get out of the rate race.

Robert Kiyosaki and team has put in much effort to replicate the real life situations of the financial world in the game, here are some glitches.

Opportunities are Dependent on Luck

In Cashflow Board Game your chances of drawing the right investment opportunity card depend a lot on luck. There is nothing you can do about it.

The real life is different. You can actively look for the right investment opportunities. More time and resources you have the more you can find out and evaluate. As you get experience you will be able to spot good opportunities quicker and more often.

Bank That Lends Unlimited Money

If you have an opportunity that can produce net positive cash flow even after serving the loan, it makes sense to borrow as much money as possible to invest in that opportunity. The bank lets you borrow as much as you want. There is no limit. No down payment is required. The bank lends money to buy all kinds of investments – let it be real estate, stocks, bonds, bullion or businesses.

This is far from the reality. No bank is so lenient. They don’t lend you money for speculative investments. They want down payment for sure and are very cautious about how much they are willing to lend you.

Bank Charges Unrealistically High Interest Rate

The bank is very lenient in lending money to anyone who asks. But they are worse than loan sharks when it comes to interest and repayment terms.

If you manage to get a loan in the real world, the interest rate is much lower. It can be anything from 6-15 % per year depending on which country you are in. I am sure there must be economies where lower or higher interest rates prevail.

You Know Where the Market is Going in Advance

A typical opportunity card of Cashflow Board Game reads like this. “B4U shares are selling at US$5 and normal trading range is US$ 5- 45”. I will use all my savings and borrow as much as I can afford to buy it. Now I have to wait for the market card that allows me to sell it at a huge profit. If the selling price is US$30, I make 600% return. If borrowed money is involved, rate of return is even higher.

Such things don’t happen. You never know what the future price is going to be. If you think you know, you are just speculating. This goes against what Robert Kiyosaki advises you to do.

No bank lends you money to invest in such a speculation.

Even though there would be exceptions, no normal stock can give you that kind of return.

Doodads are Mandatory

In Cashflow you cannot choose not to buy a doodad. They are mandatory despite of your financial situation. You are forced to get a loan if you don’t have enough cash.

Luckily, in real life you can cancel or postpone such purchases.

Three Children

In Cashflow Board Game you have no control on the number of children in the cashflow game. You may have as many as three children adding up to the expenses column.

You are not entirely out of control in this.

Does not Teach you to be Patient

This is a game. You want to beat others and win the game. You want to get out of the rat race and you want to be the first. This leads to a mentality of quick profits and speculation.

I think you have to be patient with your investments in the real life. This is a virtue a long term investor should have.

Summary

It is not possible to copy the real life exactly in any game. So some compromises become necessary. In real life we have control on some aspects of our life. Luck has some part to play in our lives. However, I believe the harder you try, the luckier you get.

Overall, the game is a good experience. If you cannot afford it, try to find someone in your locality who is willing to play the game with you. Many cashflow owners are looking for new partners to play the game with.



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