MONOPOLY

HAVE YOU EVER WON A GAME OF MONOPOLY WITHOUT BUYING ANY HOUSES?

The object in the game of Monopoly is to trade cash and property. If you land on a block of land that is not already owned by another player, you have the right to buy the block for the amount advertised on the property card. When another player lands on your block you can charge them rent which increases your cash flow. If you put a house on that block of land that you purchased, you can charge a higher rent. If you put multiple houses on the same block, you can charge even more rent until you replace the houses with a hotel. This is exactly the same in everyday life. You can buy a block of land and build a house and then charge a tenant rent for staying in that house. You can build more than one home on each block you own in the form of apartments or townhouses (subject to council approval).

Anyone who trades in cash (the savers) doesn’t really get anywhere in life just like in the game , financially until they use that cash and buy quality assets that let their money work for them. People who save cash in real life, lose every day against inflation. People who only save in the game of Monopoly cannot save enough cash to play against an experienced player who buys as many properties as they can afford. These players have a very basic yet powerful strategy. They use the same strategy as many wealthy people in real life. They buy as many properties as they can afford to and build houses on them. They rent out the houses and use the cash flow (rent) from these house to buy and build more houses. The game ends when the person who took control of the game by buying more blocks and putting houses on them, takes all the cash from the other players. Who would you prefer to be? The person who save cash or the person who saves blocks of land and houses? One of these people is going to have an amazing retirement while the other will not! There are many financial lessons that come from a simple game of Monopoly but the biggest lesson is that if you do not buy blocks of land and build houses on them you will not win the game period!