We often hear that learning about finances and managing money is tedious and tiring. But we should recognize that we have learned these things at some point, in a playful way. Board games will teach us how to handle money in a simple and fun way. Here are some financial lessons we learned from Good Finance.

Lesson 1: Share the Risk of Your Investments

Lesson 1: Share the Risk of Your Investments

At Good Finance, we make a fortune by buying houses, hotels, and rent when another player enters our property. The more real estate we acquire, the more we will earn. You can choose to buy a range of insignificant properties or rather some of the more valuable ones that offer higher rentals. We can generate additional revenue from utilities.

How does this apply in real life?

If we want more money, we need to earn more money from more sources. As is the case in the game, you can rarely win with only one source of income, that is, with only one property. It’s not good to put everything on one sheet. As we buy more and more different types of real estate in Good Finance, we will have a much more balanced and diverse portfolio, spreading our wealth across financial instruments.

In real life, it works by placing our money in various investment vehicles, for example, some in various mutual funds and another in government bonds. Mutual funds have slightly more uncertain returns but may have higher yields, while government bonds pay a guaranteed interest, but have less risk but less risk. This sharing of our investments and standing on multiple feet helps to reduce the risk of unexpected externalities and the impact of world market events.

Although there is no guarantee against unexpected losses, sharing between different investment vehicles is the most important component in achieving our long-term financial goals and reducing risk.

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Good Finance is about managing various assets, cash, real estate, utilities. The winner is usually the one who manages all types of wealth most satisfactorily. If we do not keep enough cash to cover the costs of the game, we may be in trouble and forced to sell or mortgage our property. On the other hand, it is not possible to win the game with all of our assets solely in cash. There is a need for investment and risk to buy buildings or develop real estate. You need to find the right balance, this will ensure victory.

How does this apply in real life?

We can also benefit from investing by managing our assets well, so that we can achieve the best growth we can while being able to continue to expect extraordinary situations. Unexpected events can occur at any time and we may need cash immediately. Therefore, some of our investments must be capable of breaking without loss of interest. We can sell our Units at a daily exchange rate, so if you lose your fixed-term deposits (term deposit, government bond) before maturity, you will lose all or part of your interest.

Lesson 3: Spend wisely, avoiding debt

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Generally, one of the biggest mistakes players make at Good Finance is that as they move around the board, they lose everything on the squares they are moving to. Although the game requires us to earn as much rent as we can from the various properties we own, the high maintenance costs can lead to the loss of the game.

Owning too much real estate can result in us not being able to pay the rent when you enter the property of one of our players. We will be forced to mortgage to increase our cash and, as a result, lose the ability to charge rent on these properties.

How does this apply in real life?

Losing all Good Finance money in the game results in defeat, but if we don’t have enough money in real life, the consequences can be much worse. We can have too much debt if we start borrowing recklessly. The worst thing to do then is to take another loan to repay your previous loan, as this can result in an infinite amount of debt.

Extending a loan or replacing it with a better deal can be a solution. We can combine several of our loans, so we have to pay a lower monthly repayment than previous loans. Of course, even in such a case, it is very important that you find the best solution, for example with the help of a credit calculator.

Lesson 4: Reduce the Risk

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In board games, such as Good Finance, it is very common to roll or dice. A roll or a draw can decide the win. Sometimes luck supports us, sometimes not.

How does this apply in real life?

Real life can bring such a turning point in our material relationships. Suffering from a traffic accident or even flooding our house are all accidental events. Call it luck or doom, these random events can be a big blow to our finances.

While luck plays a role in our finances, we can also make plans to fix things when a random incident occurs. If we make adequate insurance, a traffic accident or flood will not cause as much material loss as if we had no insurance. For example, if we have money set aside, a job loss will not cause a financial disaster. There will be some unfortunate events in everyone’s life, but if we have the right plan and enough reserves, we will overcome the obstacles and our destiny will turn out well.

Lesson 5: Take Risk Wisely

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Sometimes in a game victory depends on a risky draw. For example, buying a house will deplete your cash reserves during the game because you see someone else is close to buying the same real estate. Always consider the pros and cons and decide how risky the payout is.

How does this apply in real life?

In our personal finances, we may also need to take some risks to get ahead. It can be a higher paying job, even in another country. There may also be a situation where we need to invest in another investment instead of our current investment if we are afraid of losing our savings.

Sometimes it is worth the risk, but it is very important to take the risk calculated after careful consideration. Never risk anything more than you can afford to lose. This is also very important when borrowing, as a bad decision can affect our entire lives. We really need to consider whether we really need to buy an apartment or house that is beyond our realistic potential. In many cases, it is a wiser decision to buy a smaller home because of the lower price so that you will have less installments when repaying the loan.

Learning how to manage your money properly is not necessarily boring and tedious. We can also learn important things when we least expect it, even in the most unexpected places. No matter how strange at first, Good Finance teaches players how to manage their money, to think properly about their financial and investment decisions. Who said you can’t play and learn at the same time?