During this episode, we explore a recent gathering in London where entrepreneurs engaged in a session of Cashflow 101. This engaging game imparts crucial financial knowledge and strategies, empowering participants to foster a mindset conducive to building wealth. Join us for valuable insights into financial literacy, investment approaches, and the pursuit of financial independence.
Immerse yourself in financial education with the Cashflow 101 board game by Robert Kiyosaki, the famed author of "Rich Dad Poor Dad."
In this episode, we recap our recent game night in London, where 40 aspiring entrepreneurs gathered to put their financial skills to the test.
Hear how three individuals successfully escaped the rat race and discover how regular gameplay can transform your financial mindset and help you identify new opportunities.
We'll break down the essentials of Cashflow 101, from understanding financial statements to making strategic investments.
Learn how the game imparts real-life financial concepts such as cash flow management and generating passive income.
Dive into real-world lessons on diversification, risk management, and setting financial goals.
Understand why adopting a wealth-building mindset is crucial for achieving financial freedom.
This episode is filled with practical tips and valuable insights to enhance your financial literacy and investment strategies.
Whether you're an experienced investor or just starting out, you'll find actionable advice to build lasting wealth.
Press play and begin your journey to escaping the rat race!
Resources Mentioned In This Episode:
>> Apply To Become A Cashflow 101 Host Or Helper
>> Buy Cashflow 101 Board Game From Amazon
Next Steps On Your Wealth Building Journey:
>> Join the WealthBuilders Facebook Community
>> Become a member of WealthBuilders
If you have been enjoying listening to WealthTalk - Please Leave Us A Review!
Speaker 1 0:01
The purpose of wealth talk is to educate, inform and hopefully entertain you on the subject of building your wealth. Wealth builders recommends you should always take independent financial tax or legal advice before making any decisions around your finances.
Christian Rodwell 0:17
Today's episode is brought to you by wealth builders membership a proven step by step process that helps you achieve financial security within two to three years. Find out more head to wealth builders.co.uk forward slash membership. Welcome to this week's episode of wealth talk my name Christian Rodwell, the membership director for wealth builders joined today by our founder Mr. Kevin Whalen. Hello, Kevin.
Speaker 2 0:40
Hi, Chris. Good to be with you again. I think we were casually remarking that we've been not in bed together. You know, we've been engaged together now for we met 10 years
Christian Rodwell 0:53
ago. Indeed. Yeah. 10 year anniversary. And I know it
Speaker 2 0:57
took you five years to realise I had something worth latching on to this permission of wealth builders, and I'm so glad you're part of our team now and that you strategically run things I just want to put on, on record that how much I appreciate what you do. And, and thanks for doing it. And when you look at the Trustpilot reviews we get which we're always thrilled. And I suppose you know, warmed and humbled by it's it's always, you know, this is what Chris has done. This is what Kevin has done. And so while you and I are often the the front facing part of the team, you know, you were the youth in energy, he says haha, and me with the sagely wisdom, but we've got a great team behind us, haven't we? So I just want to not like in an Oscar style. But acknowledge, you know, Paul, who takes care of all the SAS and his team, and and so many people behind the scenes. And that's part of the reason for this message, isn't it? We think that because so many people resonate with who we are, what we do and how we do it, there's an opportunity for people to get involved with us, and help spread this very powerful message of wealth and financial security and financial independence basically being set for life. Instead of having to wait till your 60s and 70s for a life of uncertainty and compromise. Hey, that was a long winded intro, but it's heartfelt in it man. kind
Christian Rodwell 2:26
words. Thank you. I really do appreciate that. Yeah, amazing how quickly the time goes. And yeah, we met in London and ties in actually with our conversation today, which of course is all around the cashflow 101 board game, we're going to be talking about this and and the power of playing the game. But it was my journey of escaping the rat race 10 years ago, and I was on that transition. And actually, I joined a rich dad coaching programme as part of that education right at the beginning. And I was sent a copy of the cashflow one on one board game to play. And that's kind of where things kicked off for me. So this very week, we played in London, wealth builders hosted a cash flow 101 night, and we had over 40 aspiring entrepreneurs there attend the game, we had great fun. And everybody really, really enjoyed themselves. So we thought we'd talk about why cash flow 101 is a good game to play. And of course, you can play with the whole family as well. And that's something that we love about sharing these financial lessons with the youth but you know, stretching both ways across the whole generation of the family. Yeah, I
Speaker 2 3:26
think I remember recent cash flow game where you hosted in a different venue in London, but the person who got out of the rat race the fastest was somebody who was the son of one of our members who was 16. Yeah. And it's like, you know, it's just great to see people participating and doesn't always have to be serious about money. It can be just learning principles, but doing it in a safe environment, surrounded by nice people. And I think it's a great thing. And it's been you know, it's always interesting to me, that as famous and renowned and quite rightly, as Robert Kiyosaki is and backed ably by his wife, Kim Kiyosaki. It was the cashflow game that was invented first, it wasn't the book, the game came first. And then the book was written really to promote and publish more about the benefits of the game. It's not a cheap game, you know, it's not cheap to buy. And we've got a healthy stack of games now. But so come along and play you know, so we're trying to get this out and about we obviously it's easy for us in London to do that. But wherever you are all compass points north, south, east and west. If you're interested in playing, you don't need to play on a board game just with your own family. You can come and play with like minded people and and you'll learn some lessons and then talk about the practical application of what you can do in real life as well because the game in many respects reflects real life, doesn't it? Chris, in terms of all other languages American, the principles are the same.
Christian Rodwell 4:59
You Yeah, very much so. So for anyone who hasn't played the game, and I know there's many people when I, when I kind of kick off the game nights, Kevin, I always share a few slides and I, I show the Rich Dad Poor Dad book and I say, has anyone read this book and almost everybody has, I think it's, it's the book, the trigger the catalyst, the light bulb moment for so many people to actually understand that in order to build wealth, to have that freedom, you have to focus on generating cash flow from assets, you can't trade your time for money. And that's the big message in the book. But as you say, rightly, the the game actually really puts you in the driving seat of understanding what your kind of personal psychology around money is. And it's very interesting to see how that plays out over the 90 minute period. So I'll just quickly explain kind of what the game setup is, for anyone who's unfamiliar with it, Kevin, it's a big board. There's like a Monopoly board, you've got lots of pieces, you have the little rats, which are the players, and you put your cheese on the outside. But essentially, in the middle of the board, you have a circle, and that's called the rat race. And that's where most people spend their time, day to day going round around. Never really escaping that time for money trap. And when you go round, and you throw the dice, and you obviously move across the squares, you pass pay day. So that's collecting your salary every month, and that goes in your bank account. But then it's deciding what you're going to do with that money. And of course, in real life, most people just spend that money, Kevin, and then they run out and then they get paid. And that's the cycle that this game teaches you about actually doing deals and working with other people around the board. And, and we normally have about five or six people playing the game together. And you get the opportunity to buy small deals, which are $5,000 or less, because it's in dollars for the Americanism. But obviously, we can convert that to pounds, or the big deals which are which are bigger than that. So you start off with the small deals. And these mainly focus on the three asset classes that Robert Kiyosaki talks about in the book, which is property or real estate in his terms, paper assets, which is the investing and business. So those three pillars or assets, I should say we of course, focus on the pillars. Yeah, we focus on seven. Yeah, so we expand upon that, and you get the opportunity to buy stocks. So it teaches you about the trading range of stocks, you could perhaps buy a stock today for $1. But the range is between five and 30. So that would obviously be a good deal. And you decide with the money that you have, how much of these you're going to buy, and you get the opportunity to buy properties. And what it teaches you as well, Kevin is of course, the difference between investing for capital gains, and investing for cash flow. And there's different strategies and ways you can play the game. Of course, you can buy lots of assets, and feel very asset rich, but they're not generating any cash flow. And then you perhaps get the opportunity when you land on what's called a market card, where you can then sell some of these assets. And that's where you can realise some of those gains. And of course, then invest for for other cash flow. So that's essentially the game is to build up your recurring income, or as they refer to passive income. And when your passive income equals or exceeds your expenses, then you've escaped the rat race, which is very much the method that we teach at wealth builders. Yes,
Speaker 2 8:12
I mean, let's let's just reflect that a little expand on it. Number one, just to deal with the language, we don't worry about dollars and pounds, and we don't do any conversion tables, it's just principles and ideas, the figures probably aren't realistic in terms of the prices you'd have to pay for these assets now, but I think what I would reflect on is, for the most part, the world of wealth, and the way that it's spoken of in the way that it's marketed is really all about accumulation, that the reason 95% of the population don't become financially independent, Chris, is because they seem to be brainwashed into moving lockstep almost everybody does the same thing. We all do the same thing. So it must be right, which is sticking money into the stock market without the cash flow. And a previous episode I've talked about why just investing for capital appreciation is not a recipe for wealth. Because here's the reason why. If you think every investment is got two dynamics to it. Number one, you can invest for cash flow, it's what we prefer. Number two, you can invest for capital appreciation. Now, if you're putting money into the stock market, or your pension or your ICER, bring it to the UK language, then you're almost always investing for accumulation. Because you're hoping that what the stocks and the funds that you buy, even if you don't understand the difference. You're in the stock market and you hope that one day someday that's just going to keep building and building and building well we know it doesn't, because stock markets correct stock markets crash and so on. And the argument is always stay in In the market, because that's the recipe for success. While the challenge I've got with that is when you get to number one, it takes 40 years, if you do that, or certainly 30 years plus, but when you get there, if you imagine you've got a tiny part, and let's say in anybody's language, even with inflation, you got a million pounds in your pot sounds like a decent sum of money. But now, in order to live, you got to spend your money. In other words, you start spending the very asset you've created. So your pot gets smaller and smaller and smaller, it's like having loads of eggs in a basket on a nest, then you start cracking them and breaking them, and you can't replace them. And that means, in many respects, the very lifestyle that you plan the certainty, the security for you, is now weaker, because you're worried about what you're spending. And you didn't think that that was going to happen, but that's what happens. And then the second consequence, if you keep breaking eggs, you've got no eggs for the next generation. So the next generation become poor, and not just in terms of money, but become poorer in terms of wisdom, they don't learn anything from you. And I think that's why playing the game, making yourself understand the difference between cash flow and accumulation, cash flow and capital, while there's room for capital, and lots of reasons why you might want to boost your wealth with occasional inflows of capital, but the core strategy for me, and of course, strategy for wealth builders and the core strategy for Robert Kiyosaki and his business is cashflow. You know that cash flow is the way to build and secure that. And once you've got assets, that give you a regular source of cash flow, and as long as you maintain it, which is the second point that want to make, Chris, which is, while I understand the language, Robert uses his passive, there is no such thing as passive. And I feel strongly that there isn't, because every asset of whatever complexity, whatever type of asset you use, always need some element of maintenance. If it's a property, you need to maintain your deferred to business that needs to be maintained. If it's the stock market, you need to pay attention, not just leave it to drift on the market, but to get involved from time to time. And that's maintenance and a small amount of maintenance can keep your cash flow going for life. And if you get multiple screens of, of income recurring in your life, then these uncertainties that happen will inconvenience you, they'll never devastate you. And that's the fundamental thing. So however you get that lesson, whether you're in a job or in a business, and the business owners that we meet with sometimes are the hardest to persuade, that they're focusing so much more on putting their eggs in the business basket. And that's it. You know, they're hoping one day the business sells. And all the evidence is that only naught point 1% of UK businesses sell for more than a million quid. So the odds are not stacked in your favour to sell your business. So we encourage business owners, just like jobholders, to use some of the cash flow they get from their business, and redirect some of that into building assets. And if you use the concept, which we speak a lot of in wealth builders now, which is the SAS pension, a pension that gives you ownership and control over your pension life, then you can get the government to give you the tax back that you would otherwise have paid, so that you can invest the tax that you would have paid, or indeed the tax you've already paid and get the tax back and invest that instead. And that's got to be a smarter way to do things than just hope that again, one day someday, something's going to work out for you. It's not really a plan. It's a bit of a hope, I'm afraid.
Christian Rodwell 14:00
Yeah. Yeah, no good, good points, indeed. And yet, you're thinking about that maintenance point. Whether it's intellectual property, you create something, you read the book, or the course may be written, but you got to maintain marketing and ongoing promotion of those things in order for them to continue to generate that income. Same with joint ventures got to maintain that relationship, I think, exactly
Speaker 2 14:20
right. Chris, I was talking with one of the business owners that we connect with, you know, I wrote a book that you'll know recently with Brad Sugars of action coach, and they've got a process they follow a business called the six steps. And I was talking to one of our connections in there a guy called James, James Vincent. I said to him, James, you should never trust anybody who's got two Christian names, something wrong something. Anyway, we had a laugh, and he said, you know, we're updating the six steps. And even a business as successful as action coach is tweaking the language because you know, as the as the years move on, the language even changes, doesn't it so that change In their six steps, we update the seven pillars from time to time, although I still haven't got pillar number eight. So we've got that standing offer, if somebody can give me pillar number eight, another asset you can use to build wealth, put money in your bank account while you're sleeping, all the usual definitions that I'm hoping that many of our listeners will already now haven't got that, but we've tweaked the wheel of wealth, which is inside the programme, we've changed debits a little bit. we've tweaked the leverage points, the FYRST or and if you want to know any of these things, just either put a link to them, Chris, or suggest people look for them in the in the podcast? Well, let
Christian Rodwell 15:37
me pause you there. That's a great bridge, actually, for me to remind our listeners that we're actually hosting our next live webinar on May the 29th. That's where we will be going through our entire nine step roadmap, which will help anybody to move from financial insecurity to financial security. And that, again, is a roadmap which we have tweaked and evolved and developed over the years.
Speaker 2 16:01
Yeah, and let's again, be clear on language, it's important, because we speak the language every day, and we think we know what we mean. But, you know, we were chatting to somebody recently, and they said, What do you mean by financial security? Now, we thought we knew that meant that all of the main expenses in your life are paid for from the flow of cash that comes from assets that you own. And she thought, oh, income, security means I get in regular income, and therefore that income is stable. So we're not talking about income stability, which is always temporary, if you've got a job, it will come to an end, if you've got a business, it will come to an end, we're not talking about income stability, we're talking about the flow of cash flow, recurring income streams, that will at least cover the cost of your main lifestyle, in terms of your bills and everything, which then gives you the freedom to be able to spend more time to accelerate that process to become completely financially independent, often within, you know, just a few years after reaching security. And for most people, security can be achieved, if you're serious and committed. And that's the key, three to five years probably. And certainly we've seen enough of our members two and three. So it's a reasonable expectation, to be able to reach it. So these these principles are up, you can apply them. It's not rocket science, it's applied science, and you can apply them and that's why getting involved with the with the programme will give you a roadmap that will work if you follow it. So it's not that it doesn't work. It works. And we've got enough evidence of
Christian Rodwell 17:40
that. Yeah. So if you'd like to find out more about wealth builders membership and join Kevin and myself on that webinar, then head to W W dot wealth builders.co.uk. And you will see at the top of the page there a button for you to join, absolutely free. And we're doing two sessions on Wednesday, the 29th of May, one at lunchtime on in the evening. So pick the one that suits you best, they'll both be similar, but we know that some people are working. So we try and cater for all needs.
Speaker 2 18:05
Yes, and I have to say that the programme offering is really aimed at UK residents. You can still apply the principles wherever you are. And we're more than happy if you live in another country to collaborate with you. But the offering is really for UK because it's designed for the UK tax system, the UK financial system, the UK legal system, just as Robert Kiyosaki says is really designed for Americans. So we need to be mindful of that, because we have a lot of followers from different countries.
Christian Rodwell 18:38
Indeed we do. So we kicked off Kevin talking about connection collaboration, why the power of cashflow brings people together. And I'd like to read out a review that's come in following the event on Monday from Diana who said, I attended the wealth builders, cashflow 101 event in London this week, it was amazing in capitals, it exceeded my expectations. The game was brilliant. Moreover, I enjoyed meeting like minded people. Big thank you to the host greatly appreciated.
Speaker 2 19:06
Yeah. So you know, Thanks for Thanks for hosting that, Chris. And, you know, we'd like to be able to get more and more cash flow games played. And we're happy to facilitate the purchase of the board games, but what we need is committed people who want to give back and want to help and facilitate just as you facilitate so ably Chris to, because you've got to learn a little bit about that, because you've got, you know, the rules of the game to some familiarity with that. The principles of the game, which you know, you explain, and also there's a little video to play from Robert himself, isn't there? So what would people do with Chris if they were interested in that? Yeah,
Christian Rodwell 19:48
well, I'm really, really looking to get a group of people together. So wherever you are in the UK, we can help you to get your own cash flow games running, and we'll support you with that. We've got a huge Unity of members across the UK, people eager to come and join you. So if you'd like to be a host, even if you've never played before, we can help you with that. So head to wealth builders.co.uk, forward slash cashflow. And you can see some pictures and some videos from our previous nights. And you'll see a forum where you can just pop your name and email and let us know whether you're interested in being a host. Or even just being a helper, Kevin, because we always are looking for people to support us on the night.
Speaker 2 20:29
Yeah, that's right. And I think I don't know how many helpers you normally have there three or four, I think per session in there five or six tables. So you're three or four people is more than enough to do that to welcome people, make them feel at home. And there's a real big benefit of being helping you know, there's the benefit of you getting in for free. That's, that's a benefit. And number two is you're you're being seen by others as someone who is supportive. And therefore, you give yourself a bit of social proof, you get to play, but also you and you get to learn the insights and the applications. So you're getting insider knowledge, as well as, you know, being who you are. So if you're naturally got blase energy, energy of people, you like being surrounded by people, then it's probably something you might want to give some thought to. So that we can we can start expanding this way, way, way beyond the reaches of London. There's so many other places where some great venues and great people so hopefully, Chris, this has started a movement.
Christian Rodwell 21:34
Yeah, most definitely. And, you know, if you're listening now and you've never played, there is an online version. I think we should just mention that Kevin, you can play cashflow online, but it's a very, very simple version of the game, it doesn't really get you thinking it kind of does it all for you. One of the real beauties of coming to a live cashflow game is sitting around the board is interacting with others and also learning how to fill in your own income statement and your personal financial statement because that's really what teaches you is that your income your expenses, but also your balance sheet, you know, every assets got a liability and and it really does teach you something that we're not taught at school. You know, we've never been shown these things as a child.
Speaker 2 22:15
Yeah, so that's that sounds great. Well, let's hope we get a few takers there, Chris. And we get to meet some more nice people in other parts of the UK.
Christian Rodwell 22:24
Definitely. Yeah, no, we're looking forward to seeing you at an event soon. So I hope you enjoyed this episode. If you do, and you know, somebody who perhaps has got a board game at home, it's dusty, they've never played it and they want to come along, then do share this episode with them. We would appreciate that. Don't forget to head to wealth builders.co.uk where you can listen to all of the podcast episodes. We're on episode 243 Now, so there's a whole host all categorised there for you. So you can go through and spend hours digging through the archives. And yeah, we will be here same time, same place next week having to learn my friends.
Speaker 1 23:03
We hope you enjoy today's episode. Don't forget that we are constantly updating our resources inside the wealth builders membership site to help you create, build and protect your wealth. Head over to wealth builders.co.uk/membership right now for free access. That's wealth builders.co.uk/membership