A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
MONOPOLY: GAME OR ROAD MAP TO SUCCESS?
When we were
Kids we played the game of Monopoly. We bought, Sold, and Traded Properties. We
even went to Jail. During the course of the game, we felt many emotions, from
having money at the beginning of the game, to buying property, paying rent,
taking out a mortgage, and yes, even going broke. We even realized as we threw
the dice that there was some luck involved.
Is the game
of Monopoly a great tool to learn about investing?
I was
reading an article in US News & World Report by Daniel Bortz, and he
interviewed Philip Orbanes. Orbanes, author of the book "Monopoly, Money,
and You: How to Profit from the Game's Secret of Success," He talks about
how the game is a great way to teach kids about how to invest your money, how
to negotiate, how to have long term goals and how to have diverse
investments.
I have thought
about Monopoly through the years and I agree that it is a great tool to use not
just for Children to learn about investing, but also for all of us.
Let’s think
about Monopoly and how it can relate to life itself.
First we all
start with the same amount of money $1500 (which is the average family income
for 1935) Now I know that in life we don’t all start out even, but starting
even is a good example of how, even if you start the same, the outcome may be very
different. That first roll of the dice starts to separate the
players. You may land on a property and have to make a decision on whether to
buy the property or pass. You may land on a Utility or a Railroad and again you
must make a decision on how to proceed. You may even land in Jail.
The dice
represent the randomness of life. If the dice roll your way and you make good
decisions you can get out to a good start to the game, if the dice do not roll
your way, you can get out to a slow start. Just like life, you can’t control everything,
but the decisions you make along the way will make a big difference in the
outcome.
The dice, just like in
life will not always roll your way and they
will not always roll against you. What counts are the decisions you make
when the dice are in your favor.
As you play
on, some of the players will buy everything they can, Properties,
Utilities and
Railroads. Other players will hoard their money and just count on
"Passing Go" to
collect their $200. Those players keep their
money build a nice nest egg, but as the game goes on they find that
their nest
egg will start to dwindle as they continue to land on the other players
properties and have to pay rent. Just as in life, you can play it safe
and not
invest your money, but your money will grow much slower than the cost of
everyday life.
The players that
continue to use every dollar they have to buy properties and build
Houses and Hotels on the
properties just wait for the savers to land on their properties so they
can
start to chisel away at the savers nest egg.
Many times the investors need to borrow on their properties to pay
bills, or other unforseen events, like a tax bill from the "Community
Chest" card or "Take a Ride on The Reading Railroad (owned by another
player)" from a "Chance" Card, but just one other player landing on
their property with a hotel can get
them out of debt.
We all know
how the game will end, the saver will go broke and the investors will
fight it
out.
The big
lessen in the game is that no matter how you start, the decisions you
make
along the way are what is important. Just as the dice can’t be
controlled, life is very unpredictable. In my business of Property
Management in Anaheim Ca. I talk to people all the time about
investment. The way you invest your money
will
determine your long term financial well being. If you use your money to
invest
and grow your portfolio, you will have many options as you grow older.
If you
don’t invest, you will always be paying others and eventually struggle.
Monopoly is
just a game, but it is a good road map to follow when thinking about
investing
your money.
A.D. Cantelmo Property Management Specializes in Property
Management in Orange County Ca.