Sunday, July 17, 2016

Best Financial Game App So Far

Unfortunately for you Apple and iPhone lovers, this is only available for Android. Not saying that there is a relationship, but I've noticed that the demographics of Apple supporters tends to be a lot more discretionary with their spending compared to their Android counterparts.

Anyway, I was feeling bored the other day and I was browsing through the Google Play Store when I stumbled upon this game.

It's a rather simple turn-based game that tries to simulate reality and present you with choices to make in order to achieve financial success.

I played the game and I was done in 2 days, but I thoroughly enjoyed it and there are actually plenty of very good learning points that were driven in hard by this game:

  • Pay off your credit card debts first
  • Never have too little cash on hand (always have an emergency fund / buffer)
  • Having kids are a HUGE financial burden
  • Don't jump at the first investment that comes your way, evaluate it well before deciding
  • Even if an investment is good, don't invest if you don't have enough capital
  • Borrowing money to invest is generally a bad idea (leverage)
  • Investing in real estate is usually one of the worst investments (risk of no tenants)
  • If you lose your job, getting a lower paying job is better than no job!

What I really, really enjoy about the game is that the goal is pretty simple: Slowly acquiring passive income so that your passive income exceeds all your expenses.

While being a salaried employee definitely covers the expenses for most people, amassing tons of money in the game doesn't help you win. You need to smartly choose what sort of passive income stream to buy, and convert your current bank balance to a recurring passive income. Too many people in the real world feel safe and happy by having a large bank balance, but they don't look at their income / expenses and realize that their expenses can drain their bank account really quick if they don't have income coming in. And for most people, they only have 1 major source of income (their jobs).

This game really pushes the idea to people that you ought to have multiple streams of income to diversify your risks (risks of getting fired or a pay cut, risk of investment failure) so that you can be financially successful.

The game has 5 different levels, in increasing order of difficulty:

Level 1: Financial Survival
Level 2: Financial Stability
Level 3: Financial Security
Level 4: Financial Freedom
Level 5: Financial Wealth

Although the different levels sound pretty good, it's just a difficulty grading. I suppose if you wanted to apply it to real life, you probably could.

For Financial Survival, you need to make enough income to cover your basic expenses of rent, utilities, transport, insurance and food.

For Financial Stability, you'd want to add in an emergency fund to give you a buffer to ride out any volatile times. You can slowly upgrade your lifestyle from the bare necessities to the basics.

For Financial Security, you are being supplemented by other income streams, and you have the necessary skills to be able to do other jobs to cover the income shortfall if you are ever retrenched.

For Financial Freedom, you enjoy your comfortable level of lifestyle even without a job, which you may choose to do, or not.

For Financial Wealth, you can very comfortably live a premium and luxurious lifestyle without any worries.

Personally, I suppose I am somewhere between being Financially Stable and Secure. I don't go for the cheapest or most budget options all the time (though, many times I live and love the #budgetlife). I do have a sizable emergency fund. I also do have investments that rake in money for me every month, however those investments are not nearly enough and are rather undiversified. I definitely have the skills to take on other jobs, and since my personal expenses are low, I could suffer a huge pay cut and I would still be comfortably surviving, though perhaps not growing well or improving my financial position as quickly as I would like.

I think I will be in this phase of Financial Security for quite a long time until I can manage to invest enough money into multiple streams (or taps) of income that it completely covers my expenses of a comfortable lifestyle. Perhaps in 10 years?

So, do you guys have any good financial games to recommend? Have you tried this game before? Where do you think you stand by my rather arability classification of the different levels?

1 comment:

  1. Definitely trying this out over the weekend, thanks for the intro!


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