Finance & Investing Lessons From Monopoly (Board Game).

 Monopoly is a classical real estate trading board game & still in trend for over the last 100 years. While playing every player acts like a real estate tycoon. This game not only offers financial wisdom but also teaches pragmatic investment lessons & real estate trading. Here are,

5 Valuable Lessons that monopoly teaches about financial investment & planning.

Lessons 1: Always Keep Cash on Hand.

In a monopoly, 

The last player left is the winner, in other words, those who have cash is the winner of the monopoly. While playing without judgement if you are investing in property, investing in assets, will decimate your income due to obligations against that asset. Such as property overheads, assets maintenance & insurance etc. 

In Real Life 

when the great recession hit, the entire real estate market went bust. The stock market & credit market crashed fully. People sold/lending their securities, properties & assets at a great discounting rate to fulfil the financial obligations. On another hand, those who had cash,  purchased the property, bound, securities & stocks at fraction of their worth. In the end, they made abundant money by treading them.

In monopoly & the real world, those who have cash on hand is the king of monopoly as well as the real world.

Lessons 2: Be Patient

In a monopoly,

To win a monopoly, you have to be patient & should have an investment plan. If you are impatient while buying, some while you find yourself out of money like lessons no 1. Thus investment is known as a speculative investment.

In Real Life

In the 1990s internet was in boom. Every investor, market leaders aggressively invested their money into tech. companies. Meanwhile, Warren Buffett very much patient and did negligible investments in tech companies. Suddenly the market got crashed & investors ran out of money. Luckey fellows got out just right before crashed in that one was Warren Buffet. However, the majority of vast investors face painful losses due to speculative investment.

Successful investors don't invest based on market hope, they invest with a disciplined approached. They know when to buy & when to take a pass.

Lessons 3: Focus on Cash Flow

In monopoly & real life, you are starting with some money. your goal in the game is last standing player with enough cash. Same in real life you need enough cash to live life. 

This will ensure by generating cash flow. By investing & collecting the money.

Lessons 4: Don't Put All Egg's in One Basket

In Monopoly

Keep buying on single type assets, you can't win the game. To gain maximum cash flow you need to spread out your investment in various financial elements. Thus increases your cash flows & chances of winning.

In Real Life

Never invest your hard earn money only in the stock market for a huge profit. In other words spread out your investments in stock markets, mutual funds, real estate market & bound markets. Due to this your cash flow increases. If the market gets falls you won't get hard hit. You will be stable during survival time.

Conclusion:

Always keep some money in your hand & be patient while investing your hard-earned money. Investing your money in such a way that you will get enough returns from your investments. Most important don't invest your money in one place.