This is the cash flow game.
I found it one for a dollar at the thrift store a couple years ago. And let me tell you, its kinda cool. The object of the game is to get out of the rat race. The rat race is basically your job. Its working all day just to buy stuff that will break and have to be replaced, so you go to work and buy all that stuff all over again and throw it away and buy some more. If you love work and buying stuff, then great. But if you don’t, there’s a way out.
In order to get out of the rat race, you have to make enough passive income to cover your expenses. After you get out of the rat race, you have to buy your dream.
Anyway, I like games because I like to have fun. So, I made up my own real life version of the game. Well, my husband made the rules and goals, I’m the one who made a game out of it.
Of course, he told me to do this on some stupid computer program, but I’d rather do it the old fashioned way on a piece of paper.
I wrote down all of our expenses and gathered them together in sections of five hundred dollars. Five hundred dollars is precisely how much profit we get from each of our rental properties. We don’t have a mortgage on our properties, we pay cash. The houses colored in red are the rental houses that we own.
With three rental properties, we now have an instant raise. We get an extra $1,500 per month after taxes and expenses. That’s about 18,000 per year. This is money that we don’t have to work for. If my husband gets fired tomorrow, we have enough money to pay bills and buy groceries. We could get rid of the cars and bum a ride to the grocery store if we absolutely had to. But, I doubt that will happen. According to my calculations, we should be able to buy a house every summer for the next five years. That’s only if we’re frugal. If we hop off the wagon and spend money right and left, well, my husband will be stuck in the office chair upstairs for all eternity. (To be honest, I wish he loved work and bought me that cottage in the French Countryside. But hey, I can close my eyes and pretend I have it, right?)
This money gives us peace of mind. We wouldn’t have had it if we chose to get a mortgage on a bigger and more expensive house. We only managed to save this money because we chose to live sensibly.
(Also notice in my budget that I didn’t make an itemized list for clothes, furniture, home décor, charity, etc. Clyde and I each get our own cash that we can spend on what we choose. I’m not budgeting $100 per month for furniture and clothing when I can find a great deal of luxurious items at garage sales.)
pried them off in disgust.