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Career lions

Gaming your way out of the rat race

Gaming your way out of the rat race

Financial freedom, far away from the rat race. Isn’t that what we all want or dream of? I certainly know I do! But first, let’s start with getting more educated in the financial department before I am getting ahead of myself. In my journey to become more financially literate, one of the books I recently read is Rich Dad, Poor Dad by Robert Kiyosaki. Today, I am sharing my most important takeaways from the book.

Pay yourself first

According to Kiyosaki, whenever you receive income from work or assets, make sure to pay yourself first. Paying for tax, liabilities and living expenses comes second. As my earnings come from a corporate job, not paying taxes first isn’t really an option. However, I have been trying to make it a habit to put aside a certain amount for savings before spending it on anything else.

The difference between an asset and a liability

In the extent of paying yourself first, Kiyosaki explains how cash should flow through your financial balance sheet. He explains how assets (create income) differ from liabilities (cost expenses), which is an important distinction. While it may sound simple, the concept is pretty hard to apply to situations in day to day life. For example, taking on a mortgage for a house would be categorized as a liability. Contradictory to popular belief, right?

Gaming can help improve your financial literacy

No, unfortunately spending more time on your PlayStation or other console is not the way to go (yet). However, Kiyosaki’s Cashflow Classic game will help you to improve your financial literacy. The Cashflow Classic game can be best described as a kind of (digital) board game in which a player starts of in the rat race. You’ll have a profession as for example a janitor, lawyer or pilot and on one hand, you earn income periodically. On the other hand, you’ll also have living expenses. In the game, you’ll be confronted with all kinds of investment opportunities, while life throws some curve balls at you. At the same time, your job is to manage your financial balance sheets and get out of the rat race. All the theories in the book are actually coming together in this game, as I highly recommend you (even if you haven’t read the book) to play several rounds of it.

Having read this book, I have only scratched the surface of financial literacy. Now I am curious to know about your financial literacy. What books or courses have helped you along the way? Make sure to drop them in the comments below!

Book Reviews for #Careerlions

Book Reviews for #Careerlions

Constantly Curious

Constantly Curious