Six ways Monopoly is NOT like real life

By Lacey Filipich, BEng(Hons), MAICD

In last week’s post, I expounded on my theories about how Monopoly (the board game) is like real life property investing. In the interest of balance, I’m following up with this post about the ways in which Monopoly is NOT like real life property investing.

It’s hardly surprising that a board game does not fully capture the intricacies and nuances of something as complex as property investment. I know you’re not silly enough to think you’ll get $200 every time you go around the block, and your kids probably aren’t that silly either… at least I hope not. However, it’s best not to fall into the trap of thinking Monopoly can teach you everything you need to know about property investing. Here are six ways in which Monopoly misses the mark…

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Monopoly and Real Life | %%sitename%%

7 Ways Monopoly is like Real Life

By Lacey Filipich, BEng(Hons), MAICD

Monopoly and real life?

Monopoly? Really? Yes, I’m not talking about what Microsoft had in the 90’s, I’m talking about the board game we all know and love. Monopoly began life around 1903, originally (and quite aptly) named ‘The Landlord’s Game’. The version of Monopoly we are familiar with today was officially released in the early 1930’s and has been a staple in most Australian childhoods since then. In primary school, my sister and I spent many a holiday racing each other around the board to buy Mayfair and Park Lane. We had games that went on for several days and some that lasted mere minutes. Of course, a board game can never be a perfect replication of such a complex investment vehicle as property, but it was a great start that we didn’t even know we were getting!

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To ‘B’ or not to ‘B’: Budgeting

The people who do not cringe at the phrase ‘let’s do a budget’ are few and far between, and more often than not they hold accounting degrees.

That particular ‘b’ word (budgeting) has the power to strike fear into the hearts of men and women alike for a number of reasons:

  • It’s overwhelming – who has the time to build a spreadsheet with ALL their costs in it? And how on earth can we know what everything will cost in the future?
  • It’s boring – nothing is more likely to send you into a catatonic state than sifting through credit card statements and that pile of crumpled-up receipts hiding in the bottom drawer. And try watching the announcements about the Federal budget – positively snore-worthy.
  • It can be depressing – realising you spend $760 a year on take-away coffee is not likely to make you feel good.

All these pale in comparison to the One Unassailable Fear associated with budgeting:

If you set a budget,
you just might have to stick to it.

That’s why it’s called a budget – you set it then you don’t budge (I know. I’m hilarious).

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FIFO Money: Four Tips to Reduce Financial Stress

By Lacey Filipich, BEng(Hons), MAICD

There aren’t many industries in which you can make a pile of cash without formal qualifications, but mining is definitely one. The lure of a six-figure salary is often enough to overcome our hesitation at being away from our families for extended periods, sometimes for several weeks at a time.

Yet somehow, with all the extra income, some people who work fly-in-fly-out (FIFO) in the mining industry STILL have financial problems – just ask them! There’s not a crib room I’ve visited that didn’t contain someone complaining about their financial situation. So, if you’re a FIFO worker, how can you avoid the typical financial pitfalls we find in this workgroup? Here are four ideas you may find helpful…

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Pros and Cons of Pocket Money | %%sitename%%

The Great Debate – Pros and Cons of Pocket Money

In this extreme social experiment we call parenting, choices abound. From contentious issues like vaccination, to comparatively trivial ones like when to cut your child’s hair for the first time, we are bombarded opinions on what and what not to do, often in no uncertain terms. Ah, the glorious interweb, font of information (but not necessarily wisdom). So, if you’ve been getting lost trying to navigate the debate around the pros and cons of pocket money, let me assure this one’s completely subjective. Without further ado.

POCKET MONEY!

In this post, I try spare you the overload of the ‘pocket money should be earned’ debate. I will cover the pros and cons of pocket money, four ways you can go about setting it up, and some simple tools to help you work out which method is right for you and your child.

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