Passive income is money coming into your bank account with you that you do not have to ‘work’ for. It’s the dream way for many job-related people who have to make a living by giving up their time for money.
Sales of your book, CD or movie are passive income. You do a lot of work to create something in the beginning, then sell it over and over again without any further input. A basic but powerful concept.
This simple idea is used in Robert The Kiyosaki ‘Cashflow’ game. To increase your passive income until it is more than what you earn by working for someone else. Then you can quit your job and pay the bills again!
Most of us have had a move to ‘Monopoly’ and you either love it or hate it.
Based on buying, selling and renting properties, it is a bit basic compared to ‘Cashflow’, which has three main financial positions. These are also buying, selling and renting property, but include buying and selling stocks and buying and selling businesses.
Like all games, at first it looks scary, but if you treat it like the Steroid Monopoly, you will get the idea.
You move around the ‘Rat Race’ circle by collecting your regular salary plus any cash flow received from the purchase of properties or businesses. Every property or business you buy generates cash flow that adds to your salary.
Sometimes the cash flow in a property can be negative, which means it actually costs you money to keep it, but you may have a chance to sell it or any property with a profit in the open market. This gives you money to invest in bigger properties or businesses to increase your passive income.
Just to add a little spice, there ‘doodads‘These are what we all fall for. They are games that lose value over time and simply deplete your sources of money like TVs, boats, cars, etc. You will not be able to avoid these during the game.
Shares are bought at the turn of a card by you and the share price is different on similar cards that attract other players. You hold your shares until you or another player draws a card where your share has risen in price. You then sell – simple!
If your passive income exceeds your salary less than your expenses, you get on the ‘Fast Track’. Here, you have little money worries and can buy many businesses to further increase your cash flow to win the game. There is very little to stop you from getting richer on Fast Track and the game gets a lot simpler, especially if no one else is there to join you.
There is an advanced version of Cashflow game called ‘Cashflow 202’ which includes financial opportunities, short stocks and much worse real life drama where you can lose all your property in one hit. Only for sharp investors this.