As a kid, I HATED the game Monopoly.
My family wasn’t a board game family, so I was safe at home.
But I cringed every time I was at a friend’s house and heard “let’s play Monopoly!”
It wasn’t that I didn’t enjoy board games.
I was actually SUPER competitive.
But the idea of playing what felt like the world’s longest board game bored me to tears.
Me, every time we played:
But since today is National Play Monopoly Day, it may be time to open up my board and give Monopoly another chance!
I may have hated Monopoly, but it taught me a a few good lessons in personal finance.
Monopoly Lesson #1: Don’t hold too much cash.
While you could spend the whole game holding cash and not buying properties, that’s an easy path to miss out on valuable returns.
The same is true in real life.
While you need some cash (especially an emergency fund), you need to invest your money to make money.
The sooner you start investing, the sooner the magic of compound interest begins working to your benefit.
Monopoly Lesson #2: Diversify your portfolio.
There are 40 spaces on the Monopoly board.
If you only own one of them, the chances of a player landing on it are slim.
If you buy multiple spaces, you increase your chance of making money.
The same goes for your portfolio.Instead of only buying stocks, consider investing in bonds, real estate, and other types of investments.
If you’re buying stocks, consider index funds that diversify your stock ownership (I recommend index funds with low expense ratios).
Monopoly Lesson #3: There are no shortcuts to success.
There is no fast way to play Monopoly.
Monopoly is an endurance game, not a sprint.
The same is true with your finances.
There is no quick win, no easy solution.
You have to play the long game.
If you focus on your goals, make strategic long-term decisions, and wait patiently, you can achieve your goals- and stay out of jail!
What do you think about Monopoly? Love it or hate it? What other lessons do you think it teaches? Share your thoughts with me in the comments!
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