9/9/2023 0 Comments Cashflow 101![]() ![]() Many big businesses benefit from bank loans, while small ones may not qualify for them. They are always on the lookout for those with the experience and discipline to trade with their cash. This leverage can be dangerous in the hand of a financially naïve person but can be very potent for someone that understands how it works.īanks are in great need of businesses and investors that can turn their cash into profit. One of the dangerous but useful leverages anyone can use to go out of the rat race is bank loans. Active income needs your effort and there is so much can do, but passive income does not need your effort. Cash does not necessarily make you rich until it passes through an asset that regularly generates cash for you. The key point here is that a sudden large inflow of cash will never get you financially independent. This is the simple definition of financial independence or becoming rich in the game. The primary route of escaping the rat race in the game is ensuring that your passive income becomes more than your monthly expenses. This secret information comes at a cost, unfortunately, most people will never be exposed to them and keep on struggling in the slow lane according to the game. ![]() The financial system of every nation is full of deliberate loopholes built-in for those that are financially literate. However, advice from experienced professionals gives you an unfair advantage. ![]() Many of the right steps that lead you out of the rat race are ordinarily dangerous for the financially naïve. Regardless of your primary source of income, a financial adviser gives you clues on how to avoid landmines that are strewn all over the place. One other universal lesson from the game is that it is advisable to have financial advisers if you wish to exit the rat race. Therefore, one of the recipes for a quick exit from the rat race is having a high paying profession but living frugally. The game teaches that high-income professions have a way of leading to an expensive lifestyle. A deliberate increase in our financial literacy level has been proven to be more important than access to finance. In real life, a high-income paying job or access to a large amount of cash does not automatically translate to escape from the rat race. However, you are made to understand that your salary does not necessarily give you as much advantage as your level of financial intelligence. Different professions in the game attract different salaries just as it is in real life. A compelling dream is like having one more cheerleader on the lonely rat race track littered with wreckages of travellers that gave up on the way.Īnother key feature of the game is the choice of your profession. The journey of escaping the rat race in real life is a tortuous one, which is why few make it despite the route taken. That way, you identify the opportunity to actualize the dreams when they avail themselves.įurthermore, you have one more thing that urges you on at those times you have a very strong pull to quit. As many parts of your life as you can is meant to have a definite direction. It shows that it is not businesses only that needs to have a clear vision. In addition, having a clear dream takes away distractions from other similar dreams. You can only take others on a journey you have travelled before. It reminds you that one of the reasons to get out of the rat race is to help others go out of the rat race. As simple as this thought is, many people are stuck in life because of the burning desire to help others, while they are still handicapped. You are given a wide range of dream activities to choose from ranging from investing in medical research, building an entrepreneurship school for the underprivileged to travelling the world.Ĭhoosing a dream at the beginning of the game, like writing what you really love to do with your life when you become financially independent helps you to know that you need to help yourself first before helping others. One clear principle from the game that can apply anywhere is the choice of a dream you will accomplish once you go out of the rat race. When you understand the underlying thoughts of the game, it is a good framework to build your financial decisions. The game is primarily built to demystify the American financial system, yet it is a good guide on navigating through the intricate financial system of a nation like Nigeria. Robert Kiyosaki’s Cashflow 101 is a veritable simulation tool for anyone that wishes to understand the basics of financial investment. ![]()
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