In Part I of this post, we talked about a few excellent ways to win at MONOPOLY. In the board game universe, those strategies and ideas will serve you well, and lead you to many victories.
But what about the real world? Sure, it might be fun to win on a cardboard square, but how can we apply these same principles to our lives? Fortunately, the game offers many parallels, and if we learn those lessons, we can put ourselves in much better financial positions.
1. MONOPOLY Lesson – Buy everything you land on.
REAL LIFE Application – Buy assets, not liabilities.
In Monopoly, buying everything you can early is a good strategy. It provides assets you can use later, and each one can be a key piece in creating monopolies, making trades, and building wealth.
This works in the game because every purchase in the game is a money-maker. Even the cheapest properties, with no houses added, will give you a few dollars in rent. Real life is very different!
If you can buy things that make you money (such as certain stocks, real estate, notes, and more), you will grow your wealth. However, if you only buy things that pull money out of your pocket (such as the fanciest phones, doodads, etcetera), it will be hard to improve your financial situation.
If you’re interested in this concept, check out Rich Dad Poor Dad by Robert Kioysaki. It’s an easy read, and really helps illustrate this idea.
2. MONOPOLY Lesson – If someone is selling property, buy it.
REAL LIFE Application – Keep your eye out for good deals.
Many people are avid coupon cutters. They are fantastic at finding great deals, and get excellent discounts on everything from groceries to televisions.
If you apply this to your investments, you can do very well. Stocks, notes, and real estate are commodities, just like groceries. Prices rise and fall, and there will always be good deals available if you know what you’re looking for.
Train yourself to find investment bargains, you will do more than just save a few dollars on a TV. You will set your family up for a more comfortable future.
3. MONOPOLY Lesson – Get a Monopoly as soon as you can.
REAL LIFE Application – Start your investing journey now.
The path to a better financial future is different for each person. Some people will be best served by creating a better budget and cutting down on expenses. Others may want to take an investing course, read a new book, or make an offer on a house.
Wherever you are, get started! If you take charge of your financial future, you really expand your options. You don’t need to become a billionaire stock market tycoon, but a bit of extra money each month can be an enormous blessing.
So take one small step forward today. Read an investing article, or search for a few techniques on working the stock market. Look at your budget, and see if there are any ways you can free up some cash. There is great power in small actions – you can create positive momentum quickly.
4. MONOPOLY Lesson – Get Your Properties to 3 Green Houses / Acquire a Second Monopoly
REAL LIFE Application – Keep building on what you’ve started.
Once you’ve started your good habits, keep at them! Even if you have a great saving system, it’s easy to fall out of it. There is always a newer car, a bigger house, and a fancier phone to buy, and it’s easy to dip into savings for doodads. Be very wary of putting YOUR money in someone else’s pocket.
If you’re able to continue learning, saving, and growing your financial knowledge, you can make a lot of progress. It will probably feel slow (and a little painful) at first, but sticking to good habits is the quickest way to a brighter future.
5. MONOPOLY Lesson – Be willing to take properties instead of cash.
REAL LIFE Application – Look past the obvious answers and find creative opportunities.
In Monopoly, many people are only willing to take cash when someone lands on their squares. By accepting other payment methods (properties, get out of jail free cards, etcetera), players can give themselves a big advantage in the long run.
In real life, many people stick to the obvious answers. While common practices are a great place to start, you can really limit your opportunities for growth if you never look deeper.
Let’s use an example. Say that John Doe is interested in investing in stocks, but doesn’t want to be stressed by the ups and downs of the market. Conventional wisdom would have him either purchase mutual funds with a diversified base, or stay out of the market entirely. However, there are many other options. By using financial instruments such as stops, collars, and hedges, he could limit his exposure to big losses (while keeping the possibility of better returns).
Of course, John would have to educate himself on how to use these options properly, and work with good people. But if he looks past the obvious answers, he has a much better chance of improving his financial situation. So dig in, and don’t be afraid to get a little creative.
MONOPOLY is a very instructive game if played the right way. So grab your board, learn your lessons, and have some fun!