Grant Cardone Shares What The Game of Monopoly Teaches Kids: 'If You Don't Take Risks, You Will End Up Paying Rent To Someone Who Did'
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Real estate investor Grant Cardone plays real-life Monopoly, aiming to acquire as many properties as possible. However, he recently took a brief break from finding his next deal to share a key lesson you can learn from playing the Monopoly game.
"If you don't take risks, you will end up paying rent to someone who did," Cardone said in an X post.
Buy Assets With Your Paycheck
In the original Monopoly game, a $200 paycheck is enough to buy a few properties, especially if you use leverage. While $200 won't buy you that much, it can give you shares in an index fund or an individual stock.
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Buying assets with your paychecks is the starting point of having your money work for you. It's a core piece of building a nest egg that can cover your expenses after you have retired. While it's great to start early, it's better to start at any point in your life than it is to not start at all.
As a bonus, Cardone focuses on assets that give him tax advantages. Real estate is one of the best assets for generating cash flow and accumulating tax write-offs. He also writes off business assets, including vehicles that are over 6,000 pounds and all of his offices.
Taking Risks Is Critical For Growth
Cardone is an advocate for taking risks, and the Monopoly game also rewards people who are ambitious. It's risky to buy a property in Monopoly because you'll have less money available to cover various expenses that will come up during the game.
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However, if you keep your paycheck and continue to go around the Monopoly board, you will eventually lose your money as other players put houses and hotels on their properties. Rent can take away several paychecks depending on how established a player's properties are.
Taking risks goes far beyond investing in an index fund. It's risky to start a business, build your network, and suggest a better idea instead of the current idea that your employer is using. These risks can strengthen your skills and put you on the path to better opportunities.
Strategically Build Your Portfolio
Although it's good to take risks, you also don't want to overdo it. Investing in an index fund is one thing, but buying call options that expire the next day is reckless risk-taking that looks more like a gamble than a savvy investment.
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