Tag Archives: passive income
When most people think of retirement, they imagine saving up a bunch of money, quitting their jobs, and living off their savings and pensions until they die. They also hope that the money doesn’t run out before that time. However, you can retire early (at any age you want) if you know how to create passive income.
Many people have heard of Robert Kiyosaki and his most famous book, Rich Dad Poor Dad, but I talk to a lot of people who haven’t heard of his board game, Cashflow 101. It’s a fun game that allows you to practice the concepts taught in his book.
The game has a simple premise. You start the game as an employee stuck in the rat race. You are randomly dealt one of the following careers : truck driver, airline pilot, engineer, teacher, janitor, nurse, mechanic, lawyer, doctor, secretary, police officer, or business manager. In the rat race, you travel around the board in a circle, going from paycheck to paycheck while trying to build up enough passive income to escape the rat race and become financially free. Passive income is created by buying businesses, real estate, and mutual funds. When your passive income exceeds your expenses, you are able to retire from your job and move to the outer circle, or fast track, where you can win the game.