Played a wonderful game of CashFlow last weekend and was reminded how critical it is to reduce my debt burden as a step to increasing cash flow monthly. I selected the doctor card on purpose because I feel it is one of the most challenging professions when trying to escape from the rat race.
My friend, Jeannie, and I sat down to play with anticipation of a great learning experience. Jeannie drew the police officer card so her cash flow monthly started out much lower than mine but her expenses were also much less. Both of us focused on reducing our debt burden and every time we passed the pay check space we used a portion for this purpose. This strategy did not leave either of us much money for investing in deals to raise our cash flow monthly but our expenses went down which had the same effect.
The whole point of CashFlow is to get your passive income higher than your expenses so reducing debt burden would not seem like the fastest way to win since it creates no passive income. What Jeannie and I both found, however, was our emotional state improved dramatically as our expenses went down. We had less fear of the downsizing space and we felt we were controlling what we could control.
Soon our debt burden was not an issue and we started getting excited about finding some deals. Jeannie bought a stock at a discount and sold it for a nice gain. This gave her a next egg to buy a nice little 3/2 rental house. I was also able to make a similar purchase. We hit a market card and both sold our houses. Now we could really have fun with some big deal cards.
Almost immediately Jeannie drew a great deal with wonderful cash flow monthly. She was frustrated that she did not have enough money to cover the down payment but when we did the math we found she could borrow the down payment from the bank and her additional cash flow monthly would cover her payment. Not only that but the passive income from this deal was greater than her expenses so she was out of the rat race.
I had to play on and do several big deals in an effort to get my cash flow monthly higher than my expenses while Jeannie gallivanted around on the fast track. Despite being downsized 3 times and hitting the baby and doodad spaces repeatedly, my cash flow monthly continued to grow. As my cash flow monthly increased I lost all fear of the bad spaces and continued to invest in big deals every chance I got. I got out of the rat race just as Jeannie won the game.
This was the best game of CashFlow I have ever played for several reasons. By using the strategy of reducing debt burden I got out of the rat race faster than ever before and with the least frustration. This is where I am in my life right now. I am making some sacrifices to pay down my debt burden and I am making significant progress. Patience, discipline and focus on cash flow monthly is getting me to the place where I can take advantage of any small or big deals that come my way. Madalyn
For more on reducing debt burden check out Money Smart Skill number one.
Ever feel like you are all alone with your money challenges? I am not a coach but I invite you to have a look at what has worked for me to increase my cash flow monthly. Contact me.