Robert Kiyosaki - The CASHFLOW Game

Summary

The speaker discusses the Cash Flow game, inspired by lessons from his 'rich dad,' designed to teach financial literacy and investment strategies. The game features two boards: the 'rat race' and the 'fast track,' aiming to help players escape the former and enter the latter. It emphasizes the importance of financial education over traditional schooling, using a financial statement as a 'report card' for financial intelligence. The game encourages making mistakes and learning through repetition, promoting a fun and interactive way to increase one's financial IQ and achieve wealth.

Takeaways

• 🎲 The Cash Flow game was created to teach financial concepts based on the teachings of the speaker's 'Rich Dad', using the engaging format of a board game.
• 🔄 The game features two tracks: the 'Rat Race' and the 'Fast Track', representing the struggle to get out of the cycle of working just to pay bills versus the path to financial freedom.
• 🏦 The goal of the game is to increase financial IQ and move from the 'Rat Race' to the 'Fast Track' by generating more passive income than expenses.
• 💼 The game emphasizes the importance of financial education, suggesting that being rich alone is not enough; one must also understand how to manage and grow wealth.
• 💰 It points out that many wealthy individuals, like pro athletes and movie stars, lose their money due to a lack of financial education, making them prey to unscrupulous financial advisors.
• 📈 The game is designed to demystify and make enjoyable the concepts of accounting and investing, which are crucial for financial success but often seen as daunting.
• 📋 The financial statement is a key component of the game, teaching players how to read and understand their financial health, which is essential in the real world of finance.
• 🏁 The game encourages learning through repetition and making mistakes in a safe environment, which contrasts with the fear of failure often associated with traditional education.
• 👥 The Cash Flow game is not just for individual play; it fosters community learning through Cash Flow clubs and franchises, promoting a collaborative approach to financial education.
• 🤑 The speaker shares a personal connection to the game, having struggled with traditional schooling, and positions the game as a fun and effective way to learn financial strategies.
• 🌟 The ultimate message is that financial intelligence is accessible to everyone, regardless of academic background, and the game is a tool to unlock and grow that intelligence.

Q & A

What is the main purpose of the Cash Flow game?

The main purpose of the Cash Flow game is to educate players on financial concepts and strategies to increase their financial IQ, with the goal of getting out of the 'rat race' and moving onto the 'fast track' to financial freedom.

What is the 'rat race' mentioned in the script?

The 'rat race' refers to the cycle of working for money with little to no financial freedom, typically following conventional advice such as getting a job, buying a house, and having children, which often leads to being trapped in a cycle of debt and limited passive income.

What is the significance of the 'fast track' in the Cash Flow game?

The 'fast track' in the Cash Flow game symbolizes the path to financial independence where one's passive income exceeds their expenses, allowing them to not have to work for money. It represents the investments and financial strategies that are typically accessible to those who are financially educated and wealthy.

Why did the author create the Cash Flow game?

The author created the Cash Flow game to translate the financial lessons taught by his 'rich dad' into an interactive and educational experience that is both fun and informative, making learning about personal finance engaging and accessible.

What is the role of financial education in the Cash Flow game?

Financial education in the Cash Flow game is crucial as it equips players with the knowledge and skills to make informed investment decisions, understand the difference between assets and liabilities, and navigate the financial world with confidence.

How does the Cash Flow game differ from Monopoly?

The Cash Flow game differs from Monopoly by incorporating real-world financial concepts such as accounting and investing, and by using a financial statement as part of the gameplay. It focuses on teaching financial literacy rather than simply trading properties.

What is the importance of the financial statement in the Cash Flow game?

The financial statement in the Cash Flow game is important because it serves as a practical tool for players to understand and manage their financial health. It mirrors the real-world importance of financial statements in assessing one's financial standing and making informed decisions.

Why does the author emphasize making mistakes in the Cash Flow game?

The author emphasizes making mistakes in the Cash Flow game because it allows players to learn from their errors in a low-stakes environment. This repetition and learning from mistakes is a core part of the educational process the game aims to facilitate.

What is the role of cash flow clubs and franchises in the Cash Flow game ecosystem?

Cash flow clubs and franchises provide a community and structured environment for players to engage with the game, learn from experienced players, and practice the concepts taught in the game in a supportive setting.

How does the Cash Flow game address the fear of making financial mistakes?

The Cash Flow game addresses the fear of making financial mistakes by providing a safe space to experiment with financial decisions and their outcomes. It normalizes mistakes as part of the learning process, encouraging players to take risks and learn from them.

What is the ultimate goal of the Cash Flow game according to the script?

The ultimate goal of the Cash Flow game is to help players achieve financial literacy, make smart investment decisions, and ultimately 'get rich' by understanding how to escape the 'rat race' and move onto the 'fast track' to financial independence.