Last night I got together with a group of friends and played
the game Cashflow 101 created by Robert Kiyosaki. It was amazing. If you ever get the chance to play it, I
highly recommend it. The board reminds one of life and all of the challenges
that come up to try and limit your profits and restrict your cash flows. You
are stuck in this purgatory state called the Rat Race until you can get your passive income higher
than your total expenses. The game really got me thinking about what really
creates cash flow in real life.
Over the last couple of years I have been learning a lot
about cash flow and revenue and I thought I was getting a better grip on it
all, but last night I learned something important. It seemed that revenue
should be going up but this nasty number under the “passive income” category
was barely going up, while the “total expenses” number had no problem climbing.
It was infuriating until I figured out that “passive income” was different than
“total income.” In life it means that “passive income” is not the same as “revenue.”
Revelation #1 - Revenue must be worked for - every month. Revenue
is dependent on something happening. This morning I got up and examined all of
my business interests. Guess what I found? All of my brilliant ideas from the
last two years have not been that brilliant after all. Just about all of them
are revenue based. So every time I try to get ahead I use the method of
producing more sales, which produces more work as those clients need to be
maintained. Revenue has a cost in time, labor and thought every month. I have
four businesses that produce revenue. Each business has an expense list almost
as high as the total income. It feels a lot like last night as we all were
struggling to get out of the first area of play to get into the big area where
our dreams were waiting to be found.
Revelation #2 - I need more passive income. I need to invest
in things that bring in money every month without a high cost of time, effort
and thought. I need little money slaves that are working to bring in more while
I sleep. I need to pay attention to these possible opportunities. I need to
have an open mind but I must also be shrewd about my focus. I can’t afford to
chase rabbits. It has to fit into the current plan without a huge effort but
yet produce more passive income. Not every deal is a good deal. Not every good
deal on the table is a good deal for me. One must examine each opportunity and
carefully consider if it will indeed produce passive income.
Revelation #3 - I don’t know anything about real estate,
stocks, mutual funds, or investments. I do know and understand business to some
degree but I am empty of all investment knowledge. It is time to go learn
something. We can all try to pretend we are smart, but the reality will show up
somewhere. The fact is, I have to admit I don’t know enough about these things.
Those with millions of dollars of passive income do know these things. I can
convince myself I am just fine and smart enough, or I can admit the truth and
grow. Pride will keep me where I am at.
Revelation #4 - Playing this game changed the way I thought.
Playing it more will help critical thinking. I now know that I need to raise my
passive income. What will I learn next week when I play the game again?
I challenge you to try this game. You will learn things you
never knew you needed to know. We are going to keep meeting to play it. If you are
in Calgary and you want to come give me a call. I will get you invited to an
evening out with a bunch of crazy, excited business people who want to learn a
little more and go a lot further.
Always Loyal2U,
Kerry George
403-397-1909
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