Using Prime Factorization to Win Cashflow 101
October 3rd, 2008 Filed under: Uncategorized — Finance AuthorWhat does the topic on prime factorization have to do with winning Cash flow 101, the famous game designed by bestselling author of “Rich Dad, Poor Dad”?
1) If you have forgotten what is prime factorization, this is a brief explanation. Prime factorization means to express a number as a product of all its prime factors. For instance, the number 12 has prime factors such as 12=2x2x3.
2) In Cash flow 101, the objective of the game is to be the first person to exit the Rat Race. However, all players start the game without much residual income or cash flow coming in. Thus, they would have to spot the various opportunities available in the ‘Small Deals’ and ‘Big Deals’ section in order to grow they wealth.
3) The game instructions advice players to start with the small deals if they have less than $6000 dollars on hand and little investing experience. This approach of taking the ‘baby’ steps is the same technique as using prime factorization, in which larger numbers are broken down into smaller and manageable numbers in order to solve a complex problem.
4) As you begin to take on ‘small deals’ and gain more experience, you can progress onto the ‘big deals’ in the game board. The only way to know if you have gained sufficient experience is to first find out if you are gaining more streams of cash flow as the game progresses.
5) If you can follow this approach, you will soon be well on your way out of the Rat Race and into the fast track in the game of money.
In my opinion, I think the game Cash Flow 101 is not just a game, it is a reflection on one’s attitude towards money and investing.
An avid player of cash flow 101, the author discovered this game while reading the book Rich Dad, Poor Dad. She is currently reading and exploring more ideas to eventually add another stream of income to her investment portfolio. For more ideas on creating multiple sources of income, visit http://smallbizwizard.blogspot.com to generate more ideas to market your practice or small business.
