Passive Income Lesson From Christmas Monopoly!
Firstly, Merry Christmas to you, I hope you had a fantastic holiday full of laughter and good times! This is my first post since Christmas so I wanted to share with you something that became very apparent whilst playing our annual and slightly ritualistic game of Christmas monopoly.
Each year my father and I have a monopoly duel at some point over the Christmas period. This battle usually takes place on either Christmas or Boxing day. The rest of my family have proclaimed their dislike for the game (god knows why, it’s gotta be one of the best boardgames out there!) so it’s usually down to just me and the old man.
However, this year my sister unexpectedly wanted to join in the game. I looked at my father and noticed the half smile and the glint in his eye as he looked at me; ‘like a lamb to the slaughter..’ we we’re both probably thinking, in the nicest possible way of course..!
Myself and my father are both seasoned experts at the game, having dueled many times over the years, from King’s Cross Station to Old Kent Road. I’m sure my father has won more times than I have, though I would never admit that to him. He can be rather ruthless when it comes to moving little metal pieces round a board, holding a fist full of cash in his hand!
So we each chose our pieces and got stuck in to the game. My strategy was to firstly go for the railway and power stations, allowing the others to get preoccupied with the rest. I picked up King’s Cross Station early on so things were looking good.
The Game Takes An Unexpected Turn…
As the game unfolded, I was expecting to look across the table to see my father buying up everything he landed on like a crazed tycoon. However, my sister, had soon amassed a small fortune and an impressive portfolio of property. She was just getting ready to build her first houses when I realized that I still hadn’t collected a set of anything…
Glancing over at my fathers estate, I was surprised that even he was falling far short of the unexpected land Bareness threatening to bankrupt us both! A couple of turns round the board later, both myself and my father were slowly but surely having our bank accounts emptied by my sister as we landed on her hotel boasting properties. From Trafalgar Square to Park Lane, Kerry had all the best properties and was making a nice passive income from the rent.
Quickly, both myself and my father’s strategies had to shift from accumulating assets and building properties (passive income) to ‘save as much money as we could in case we had to pay the land Bareness once more.’ This strategy only saved us for a few more goes around the board until that was all gone too!
And before we knew it the game was over, the land Bareness had won and the two ‘experts’ were left with their tails between their legs!
The Importance of Passive Income
This game is a fine example of the importance and superiority of passive income. By owning multiple assets in property and charging people rent, you have a continuous and sustainable form of passive income. This can be likened to establishing several passive income streams online, an email list, a blog, creating your own products for affiliates to promote, or even having a few ebooks published on Amazon Kindle.
In monopoly, rather than spread yourself too thin buying up all the property quickly, you can instead increase the value of the property you own by building houses and hotels on them. Subsequently, you will then be able to charge more rent. This is a good strategy.
Likewise online, rather than racing ahead and starting up venture after venture in many different niches, it is far more sensible to stick with one, build on it, nurture it and let it grow. Once it is at a state where it only needs a little amount of your time, then perhaps look at starting a new venture.
This reminds me of a Chinese proverb;
“A man who chases two rabbits catches none..” - Chinese Proverb
State of Mind
I think besides luck, the other factor that caused my sister to win and in such a decisive manor was her state of mind. She doesn’t really like the game but wanted to join in to have something to do. She wasn’t really concerned with winning or losing. This would have enabled her to be less cautious, taking more risks that obviously paid off.
Life is about taking risks. This reminds me of another quote from one of my long time hero’s;
“He who is not courageous enough to take risks will accomplish nothing in life” – Muhammad Ali
Now I’m not saying to take loads of risks and to hell with the consequences, but being too cautious definitely does not push you forward. Therefore, a more sensible approach is to take calculated risks. Some you will win, some you will lose but if you have the right strategy it usually works out that that your wins count for much more than your losses.
What games do you play at Christmas, and did you have any realizations or shifts in perspective regarding your business or current line of work? Where in your life are you being too cautious? What examples can you share about times when you have taken bold action and it has paid off?
Please share them in the comments below…