What the Railroad Tycoon game looks like in play
It is a little known fact that military strategists play a lot of games in order to hone their skills at war. I don’t just mean the famous “war games” that are conducted by large military organizations to train their troops and test procedures. I mean that strategists play a lot of “what if” scenarios that take into consideration many different aspects of military planning and unexpected challenges.
We grow up playing games but we don’t take them seriously. As an investment strategist you should probably spend a few hours every month playing financial games so that you practice making money in an aggressive style without incurring any risk. There are some pretty good investing games that you can try out. They don’t play exactly like the real world but you can get a real-world feel for how money flows and how profits are made.
Here are a few suggestions.
Cash Flow 101 – Most people rate this game pretty highly but it is complicated and can be boring for kids. It is rated for ages 10 and up.
Monopoly – This is the classic investing game and it is great fun to play. You can take out loans, buy and sell properties, collect rents, and also collect a salary. Play the Mega Edition, for sure.
Net Worth – Although I have never played this game it promises to teach children the basics of investing. It is rated for ages 8 and up, which includes adults.
Railroad Tycoon – Always a great game to play because you have to build a railroad across the continent before anyone else. Sooner or later you have to start leasing resources from your opponents.
If you are involved in an investing club you should set aside 1 night a month where you play one of these games. The game play will remind you of the risks and rewards you are getting involved with.
The practice is good and you can spend some time comparing game strategies to the real-world strategies you employ in your investments. You’ll look at how you are trying to make money in a whole new way.
Really, there are only two secrets to making money. The first is that old adage: spend less than you make. But the second secret is to make your money work for you even while you are not working with your money.
Investments are not just things we buy. They are choices we make. If you don’t understand how the investment works then it probably won’t pay off for you in the long run.
By practicing at being an investor with no risk you’ll avoid that worst-case scenario of investing: falling into a Ponzi scheme and eventually being caught and going to jail (like Bernie Madoff).
Our goal is to make money, not license plates. We can only do that if we feel confident in our choices and we know how the system works. Study these games and learn how they work. You’ll find you are a much better financial strategist for having made the effort.