Cash Flow 101 and the Velocity of Freedom

Robert Kiyosaki - RidhDad PoordadIf you’ve been around the business world for any significant period of time, no doubt you’ve heard of Robert Kiyosaki and the Rich Dad Poor Dad book series. But Robert is also the creator of the Cash Flow 101 and Cash Flow 202 board games.

Cash Flow is a physical representation of the ideologies and principles taught within Rich Dad Poor Dad and in particular the principles within the Cash Flow Quadrant.

First off, if you haven’t read the books – start there. They will change your entire outlook on what it takes to become successful. At least they did for me, so hopefully you’ll have a similar experience. Millions of other people around the world have as well.

Second, if you haven’t played the game – Do It! I bought the physical game and we love playing as a family and have spent many Friday and Saturday nights with friends and free flowing tasty adult beverages huddled around the board. It’s a blast.

And definitely beats the hell out of small talk at BBQs discussing the finer points of what happened to the “desperate wives” this week!

Take a look …

Where was I? Oh yeah …
So start there. You can also play the game on line for free at

My story starts with the board game in this case …

CashFlow 101

As I said we play all the time. And as I was sitting in my office the other day I had this picture come to mind about the game and how people play and the various things they do or don’t do while they learn how to play the game.

In so many ways it’s just like real life. People that have never played before but have that entrepreneurial spark, fall in love with the game and will easily sit up till 2am until they finish.

Other people we’ve played with get “bored” within a couple of hours and lose interest. Game over.

How true to life is that?

I mean how many people do meet as you go about your own journey as a budding entrepreneur that connect with you and see what this industry is about and they “get it” and that flame is ignited in them? Isn’t that the coolest thing to see? To be part of watching someone “come alive” right in front of your eyes as they’re awoken from the matrix … I love it!

But so to are those people you come across that “don’t get it” and they stay asleep and are perfectly content staying plugged into the system. In fact they prefer it that way. It’s easier. It’s more comfortable. It’s less painful. That’s a sad thing to see.

But such is life and we all have to keep on keeping on with our own journey and cherish the ones that do wake up.

The Cash Flow Quadrant is all about understanding the intricacies of the matrix and how people get stuck in the game; or the Rat Race as Robert refers to it.

So as I was sitting at my desk I began to think back on all the games we’ve played and looked at how that game has played out in actual life experiences. And that got me thinking of the concept of the Velocity of Freedom.

What is the Velocity of Freedom?

This is a phrase I started using awhile back, not sure when, but in my mind it makes me think about the things we do or don’t do that affect the actual speed at which we are able to achieve our goals. In particular, the goal of freedom.

We’ve all heard it phrased in various ways …
Time Freedom
Financial Freedom
etc., etc.

At it’s core it all means the same thing to us all …
the total freedom on every level that an abundant financial landscape in our personal life will afford us in every respect.

So the Velocity of Freedom is really about
“How Long Will It Take You To Get To Your Personal Position of Freedom In Life?”

This can be directly reflected in the Cash Flow game.

The first time I played all I could think about was how in the hell was I going to get anywhere as the janitor? I barely had any cash flow. Others on the board were doctors and lawyers and pilots. They had great cash flow. Way more than the janitor made.

So I bided my time slowly accumulating pay days, hoping and praying I wouldn’t land on a doodad or have a kid or God forbid, get downsized. And when I had enough money “saved up” I’d do a small deal and take a stab at generating some passive income.

Again as I watched the pilot or the doctor do small deals right out of the gate with their fat pay days, I thought, shit that’s not fair, they start with more money right off the bat. How am i ever going to get out of the rat race making pennies. This sucks!

But then I played those other characters.

Have you ever seen this commercial …

Yeah … that’s in the game too!

I realized that along with these fat pay days, the characters were also totally in debt with exorbitant credit card balances, huge mortgage payments and basically leveraged to the max. They were one disaster away from financial collapse.

I’m sure other people have noticed this playing the game too.
But I’ve watched time and again as we play that people tend to stick within the “parameters” of “the rules of the game.”

Everyone rolls the dice, moves their piece and either picks up a card and takes a certain action or they respond to the dictated action on the space they landed on.

When it comes to a card, they look at the deal, they look at the stack of money they have in front of them, take a quick glance at their balance sheet and decide if “they can afford to do the deal.”

If not, they pass and the next person takes their turn.
And on and on it goes.

OK. So that probably sounds just like every board game you’ve ever played right?

Now ask yourself …
How Does That Sound As It Relates To Real Life?

… and in particular how it applies to those of us in network marketing or some type of home-based business.

How many people do you know that are just biding their time at their jobs, waiting for the weekend.

Then we come along with an “opportunity.” And what do they do? …
They look at their stack of cash, take a quick glance at their checkbook
and decide whether they can afford it.

So how does the Velocity of Freedom come into play here?

Well as I played the game more and more I began to look closely at the rules and started noticing things I hadn’t really paid attention to before.

For instance, Did You Know …
You’re allowed to pay off the balance of your various debts to reduce your monthly expenses?
Holy Crap Batman … What a concept!

And … Did You Know …
You don’t have to have ALL of the cash required to put a deal together?
I know huh – Who Knew?

OK, so I’m being a little sarcastic there, but honestly, as I played more and more I started looking at things like my expenses on my balance sheet. I can pay these off. If I lower my expenses it frees up cash flow. If I free up available cash flow I can use it to do deals. DUH!

CashFlow StatementI remember the first time I did this in the game … it was my turn and before I rolled I announced that I wanted to pay off my credit card debt. As I handed my money to the banker everyone at the table looked at me like I was infected with some weird disease. Immediately someone across the table shouted …

“What do you mean you want to pay off your credit card debt? You can do that?”

I almost laughed. Actually I think I did. Immediately they scrambled for the rule book to verify I wasn’t full of it. And sure enough, right there in black and white … you can pay off your debts at any time in the game. Who woulda thunk huh?

The next “ah ha” came one time when I was playing the game and I picked up a big deal card. I didn’t have the down payment, but it was a killer deal with something like $2400 on monthly passive income. I knew I could borrow from the bank, but I really didn’t want to add to my expenses. The whole point of the game is to increase your passive income to the point it exceeds your expenses.

So I looked at the card and saw that I could pass OR the deal could be sold. Well this got me thinking, so I paused for a minute and went back to the rule book. I wanted to see the details of what that all meant.

This time I simply asked the other players if anyone wanted to “buy this deal?” Again, I kinda got this “deer in the headlights” kind of look from everyone. I showed them on the card that it could be done. And thus began the first “big deal auction” our little group had done. I walked with $1200 and the other player got the deal. It was awesome! I had made enough money to do another deal by brokering a deal. How cool is that?

What I did next again sort of shocked the other players. It was my turn and I picked up a Big Deal card. I looked around kind of taking inventory of how everyone was doing and I had been paying attention to how people were playing and what their style was. So I look over at my friend and asked if he wanted to go in on the deal with me.

Right there someone shouted … “Hey, you can’t do that!”
And I was like … Why Not?

There’s actually nothing in the rules that clearly says you can or can’t. So why not? I knew there were things left out of the “rules” on purpose. After a couple minutes of debating everyone kinda “got it” and decided hell yes you can do that. If you can do it in real life, why not in the game; especially this game?

So me and my buddy just split it all 50-50 with half on his balance sheet and half on mine.
We did a JV playing Cash Flow 101 … woo hoo!

And that’s when it hit. We got it. We all saw it. It clicked.
This was no mere game. It was like finding an oracle. We were hooked!

From there on we never played the game the same again. We were always on the hunt.
Aggressively looking for ways to cut our expenses and ways to do creative deals with the cards.

And then one day it happened … I got out. I got out of the rat race … with the janitor!

It took about an hour with six players. Before it took anywhere from 3-5 hours for anyone to get out. Literally, we’d play all night. I was blown away. That same character I started my first introduction to the game with, was now the character I won my game with; faster than I ever had before.

That was cool!

So my whole point in illustrating that experience with you is this …

What are you doing to create Velocity in “Real Life”
with the things you do to move you closer to Freedom?

  • How fast are you moving towards your dream lifestyle?
  • How much closer are you today to quitting your job?
  • Where can you “cut expenses” that will free up your cash flow
    so you can start to do some deals?
  • Who in your network can you “JV” with to put something together that you
    can mutually benefit from and move closer to each others goals?

Are you still playing the game?
Or have you lost interest and quit?

There’s so much more I wanted to go into here, but I’d wind up writing a book.
But I would love to hear your feedback and your answers to those questions I asked.
So leave your comments below!

How Fast Is The Velocity of Freedom In Your Life?

Live Long & Prosper.

About the author

Richard Bravo

Curator of cool, entrepreneur, marketing maven, artist, writer, knowledge junkie, foodie, snowboarder, conspiracy theorist. Founder of Matrix Escape Artist Society


Leave a comment: