Monopoly is a fun board game for people ages eight and up. It's said to be similar to the financial situation in real life. This article will explore six things we can learn from playing a friendly game of monopoly.
Start saving early.
In monopoly, every player starts with the same amount, and everyone gets a salary as they pass through 'Go.' The best plan is to start saving as soon as you get your money. That way, you'll be buoyant enough to buy properties you land on or are put on auction.
Savings in real life are doubly important. Every penny you save can benefit from compound interest, increasing your overall worth. Saving also makes you ready for investment opportunities whenever they arise.
Spread your portfolio.
In the game, you want to buy as many valuable properties as possible, within your means. You can’t depend on a single strip of real estate to keep you going forever. The same is true in real life. Besides the income from jobs, you should invest in other opportunities.
Some examples are mutual funds, stocks, bonds, and even real estate. You can also start a business. The goal is to be protected from dry spells in any single income stream.
Get an emergency fund.
As you play the game and buy property, so will the other players. Sooner or later, you'll need to pay rent on other players' properties. You need an emergency fund to cushion the blow because, as anyone who has played monopoly knows, the money comes and goes.
Every time your passive income streams generate money, put some aside for handling unseen events like a trip to the emergency room or car troubles. It's even easier because you can automate your savings in real life.
Sometimes, an emergency fund isn't enough to save you from a property with a big red hotel. One wrong turn can drain your accounts, and your power of negotiation is the only thing standing between you and bankruptcy.
In real life, you'll need to negotiate with everyone, from your spouse to your boss and even your kids. Negotiation can earn you a higher salary, a better price on your home, and even give you more time to pay your taxes. It's a critical skill to possess.
Taxes don't go away.
Unless you're the luckiest monopoly player who ever lived, you'll draw a tax card at some point during your play. If you don't, you'll land on one of the strategic tax tiles on the board.
Unlike monopoly, you know exactly how much taxes you’ll need to pay in real life. You also know the deadline for filing your taxes and procedures to follow. If you don’t, you can refer to this resource for helpful information and access to tax preparers.
You need allies.
If you start the game of monopoly threatening to bankrupt every player on the board, you won't get very far. Unless you can control where you land on the board, you'll need to negotiate and leverage your relationships.
In life, we already start with allies. They are our friends, family members, neighbors, and co-workers. Leveraging these relationships can get you help when it's desperately needed.
Published by super sunny