Saving money lessons learnt from Monopoly
I know couples who refuse to play Monopoly with one another. Deciding that their relationship was put under too much strain by the heightened emotion of the board game, they have reverted to the safety of Pictionary or Connect Four.
It’s easy to see how playing Monopoly could have such serious ramifications. After all, it is a battleground of ruthless behaviour and cruel disappointment. Only rarely, is it a place of triumph.
If I thought I was alone in thinking that there were a lot of real-life lessons in the game, then I was most seriously delusional. The blogosphere is full of life lessons to be gleaned from the pursuit of a hotel on Park Avenue and avoidance of prison.
Here’s what we can learn about savings from Monopoly.
Fund your emergencies
Writer Jim Wang seems to feel that Monopoly has a lot to teach us about personal finance. Crucial in the lessons the game has to offer is that emergency funds are fundamental for healthy finances. Hopefully none of us will actually go to jail in real life, but in Monopoly, holding onto your last $200 may be the key to winning.
Real life lesson
Emergencies happen, so why not prepare for them? People may not be as willing to extend leniency in real life as they are in Monopoly.
Passive Income? Yes. Passive-aggressive? No.
Try to keep the passive behavior in the field of finance, and you may come through Monopoly (and life) wealthier and with more friends.
Wang suggests that passive income (such as rent in Monopoly) is the key to financial security. The writer of Million Dollar Journey agrees. While having a cash cushion is important, that must be supplemented by investment to stay ahead of inflation.
Real life lesson
Building up your assets so they generate passive income is much more successful than just trucking on through (and collecting $200 if you pass Go).
Lady Luck is an important dame
Monopoly can be a cruel game. One minute you’re king, the next you’re mortgaging everything you own to stay in the running. Commentators seem to agree that in personal finance, as well as Monopoly, it’s important to capitalise on Lady Luck while she’s on your side.
Real life lesson
Take the opportunities that come your way, all the while protecting yourself when the Grand Old Dame decides to flirt with someone else’s dice.
Out of sight, out of mind
John from 20s Savings has an interesting Monopoly technique, which he applies to real life as well. When he’s cashed up, he surreptiously puts his money beneath the board where he can’t see it. He feels less likely to spend the money when it’s not in front of him, and is therefore more selective about what he spends.
Real life lesson
Have a separate saving account, where you can’t touch the money unless absolutely necessary. When you’ve got some extra money, add to the account. You’ll be building yourself a nice little nest egg in no time.
Having a game plan and sticking to it is the key to Monopoly (and money strategy in real life). If you can patiently build on your investments, and manage safe risk, you’ll be the winner in the long run.
What saving lessons have you learnt from Monopoly?
Drop us a comment below!
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