Sunday, June 02, 2013

What A Life: Cashflow Fun

Last night we hosted a Cashflow 101 games night at the local community hall near our house. Many of the people attending played for the first time. It was great to watch them discover the potential of this game. You start off the game with how most people live their lives. They have a job the provides them with the income they need to cover their living expenses.

The goal of the game is to become financially independent and have your assets produce the income you need to cover your expenses. Succeeding this takes you our of the RAT RACE and puts you in the FAST LANE.

If you are living you life following the regular pattern of covering you expenses with your JOB, what would happens if suddenly you could not work? You would then go to you ASSET to cover your expenses (savings, RRSP, Etc) the problem with using your assets is you will eventually run out. You would the have to turn to your LIABILITIES to cover the expenses (Credit Cards, Line of Credits, Etc) eventually you wouldn't be able to borrow yourself out of your obligation and you would then have reached BANKRUPTCY.

Now look at the pattern for RETIREMENT; it looks an awful lot like the beginning of the bankruptcy pattern. Scary!!

That is why we feel learning to become financially independent is so important. It would be great not to have to worry about running out of money in your retirement.

So here we where last night learning to become financially independent.