Monopoly, money and you

One of the most well-known board games can also be a great way to learn about money and investing - according to this book.

Perhaps one way to teach kids (and maybe ourselves) about finance is to play a board game. In so many ways, the game parallels our own financial life - and we can practice financial decision-making without losing any real money.

Is monopoly like life?

Yes and no. We manage our cash, negotiate, make deals, make choices, go through tough times, make investments, pay tax and reap rewards.

To do well we have to make investments. It's very hard to win just by collecting $200 each time you pass go.

There are rules, and wise moves. The better we know them, the better we do.

However, in real life, you can win without forcing others into bankruptcy.

Principles that work in the game and life

Diversify. You might have hotels on the two most expensive properties on the board, but if no-one lands on them, you still might lose.

Investments have a price and a value. They are not necessarily the same. Understanding value helps you determine whether the price is too high or a bargain.

Finding the ideal amount of cash. Holding on to too much cash means missing out on investment returns. Not holding enough means getting hit hard by expenses and missing out on new investment opportunities.

It's a mix of luck and skill. If you're a winner, other players may think it was luck, but a large amount of the success comes from wise decision-making, maximising your chances, and being in a position to benefit from any luck that comes your way.

The game has phases. In Monopoly, it's buy, build and bankrupt. In life, it's accumulate, grow and withdraw.

Wealthy people are wealthy because their money is working for them - rather than them working for money.

In summary

This is a fascinating book if you've played (or play) Monopoly. There are a lot of tips purely on how to play better at Monopoly - so if you've never played, then that could be a bit tedious. Also the author refers to the properties on the American board, so if you're not familiar with that board, then it loses some meaning.

The intelligent approach to the game, and the connection to real life finances is quite interesting.

It's also got me interested in playing the game, for the first time in a long time.

Comments

My mug shot

This is every mug I own. How many did I buy? Zero. They seem to just appear. I don't even drink tea or coffee. In winter I have might have a hot chocolate or cocoa. So 9 mugs seems like a lot. How does this happen? I reckon most mugs are gifts. There are two reasons for this. 1. It's a safe bet. People need to drink. It's kind of like buying your dad socks for father's day. But the difference is that socks wear out and need replacing. Cups don't. One of these mugs i received as a kid in the 90s. It still works fine. Now it has 8 friends. 2. It's often for what's on the mug. It might be a greeting card-style message, or a sports team logo, or something humorous. It's a good thing that something functional can also provide an inspiring message or pleasant memory as you use it. But the problem comes when we have too much. If I use the cup my sister gave me at Christmas, then I'm not using the 'awesome brother' one she already gave m...

Less Clutter More Cash - now available

Do you feel like you have too much stuff? Is your home full of things you never use? Would you like to swap them for cash? We did My wife and I have sold more than 550 items online as we downsize and we've learnt a bit along the way. I've put some of our best tips into this handy ebook. I hope you can use these tips so you too can have less clutter and more cash. Enter your email address below to receive the book for free. Less Clutter More Cash Get my new ebook for free. PS. This will subscribe to the But Wait There's Less email list, so you'll know when the new updated version of the book is available. You can unsubscribe at any time.

Why living differently is rare

Why do so many go mainstream? Once you discover the benefits of an alternate lifestyle (for want of a better phrase) it's hard to see why more people haven't taken it up. Whether it's minimalism, part-time work, frugality, financial independence or eco-friendly living; at some point we ask ourselves why so many people live the mainstream lifestyle. "Why do people own so much stuff?" we might wonder, "Surely they must realise how little joy they get from those items.". "Why do people (and companies) insist on working 40 hours a week rather than 30?" "Why do people spend practically all their income, rather than investing for a passive income that could last forever?" "Why do people drive so much when there are healthier, more affordable and eco-friendly ways to travel?" The wisdom of Solomon I recently read about the conformity experiments of Solomon Asch. He gave people simple multiple choice questions and record...

But wait... there's less!

Search This Blog