Modified Game Rules y y y y y y y Professions are fixed for players Criteria for player to get out of rat race:

build passive income > expenses Removal of $1 and $5 stock cards Grant of baby bonus ($1,000) if player lands on baby box Player required to have a min of $6,000 to draw big deal cards Introduction of Critical Illness box o Players will lose 2 turns Introduction of option to buy insurance (10% of total salary for upfront payment + 10% of total salary that recurs every month under expenses) o Insurance will be void upon landing on Critical Illness box. Player will have to re-purchase it to be insured again Modification to Downsized box o Player will not have to lose 2 turns o Not insurable Player can only pay off liabilities at end of his/her turn

Guide to Cashflow 101 Training (Original Game Rules) 1. Explain rationale of game y To improve financial literacy while having fun 2. Explain brief mechanics of game y Inner circle: Rat Race o Relate it to real-life rat race is where most of us are trapped in; a term used to refer to the life of an average person who lives in financial insecurity. We are doomed to work to finance our needs and wants. As we climb the social ladder, we find that our expenses increase as well so we work even harder to finance these expenses. The end result is stress as we find ourselves in this endless pursuit of work with little reward and purpose o Therefore, the first objective of the game, just like in real life, is to get out of the rat race o How? In the game, build your passive income to be greater that of your total expenses o Ask what they know about passive income. Explain that passive income is $ you receive even after you stop working. How is that possible? By means of investment opportunities such as real estates and businesses y Outer circle: Fast Track (the game of the rich) o Goal: buy your dream/increase monthly cashflow ($50,000) 3. Instructions y Tell them that each of them would assume a working role in the game. Face down profession cards and get down to pick a profession at random y Instruct them to copy down values on game sheet

Get them to choose their playing pieces rat and cheese of the same colour; get them to place rat at starting point and cheese on a dream (any pink boxes on fast track) y Reiterate goals of the game: get out of rat race first to proceed to fast track and then land on your cheese to buy your dream/accumulate additional monthly cashflow of $50,000 on fast track y Analyze balance sheet with them o Explain what are assets and liabilities o Explain computation of monthly cashflow (total income total expenses) o Tell them that this monthly cashflow is the amount of $ they will receive from banker each time they pass land or pass the paycheck box. They must shout paycheck to banker with the corresponding value. Their entitlement to get their paycheck will be forfeited if they fail to do so before the next player rolls the die. y Tell them that the player sitting on their right will be their auditor to ensure they fill in the balance sheet correctly and that theres no cheating y Distribute cash to player (initial savings + monthly cashflow based on their respective professions) y Get them to roll a die. Player with the highest number goes first. Direction of game will go clockwise

4. Learn as they play Rat Race y Explain significance of boxes as they land on them o Charity box: can roll 2 dice in next 3 turns if player choose to donate 10% of total income to charity (banker)  Significance (let facilitators know but dont let participants know): can pass through paycheck box faster and get more $ o Opportunity box: investment opportunities to help player get out of rat race. Can only draw big deal cards if player has a min of $5,000 in hand (show opportunity card to everyone) o Doodads box: unexpected/unnecessary items on which player must spend $ o The Market box: economic events/where players will find buyers for their investments (show market card to everyone) o Paycheck box: player gets paycheck! (Must shout paycheck and corresponding monthly cashflow value to banker) o Baby box: player has a baby! Increase no. of children on game sheet, add per child expense, update total expense, reduce monthly cashflow by per child expense. (Limit of 3 children per player) o Downsized box: aka the suay box. It means player has temporarily lost his/her job. Pay amt of total expenses and lose 2 turns. (Also ends effect of Charity) Fast Track y Can proceed from fast track to rat race at any start of players turn whereby his/her passive income is greater than total expenses

o Turn game sheet over and fill in name & auditor o Calculate buyout (100x of passive income), which is also players beginning cashflow day income (amount player receives each time he/she lands/passes cashflow day box o Collect beginning cashflow day income from banker o Calculate new cashflow day income goal in how to win box (new cashflow day goal = beginning cashflow day income + $50,000) o Player to place rat piece on Enter Here arrow of Fast Track o Default: Roll 2 dice o No borrowing of $ from bank Significance of boxes on Fast Track o Cashflow Day box: like paycheck in Rat Race player receives cashflow day income! If player forgets to ask for it on his/her turn, he/she may still receive it! o Business Investments boxes: the green boxes on the Fast Track. Can purchase them if player lands on them. (For business investments with limited spaces [stated on the box], place same colored token on the space you have purchased). Once purchase limit is reached, other players cant buy it anymore o Dreams boxes: pink boxes. Can choose to purchase dream. If player lands on another players chosen dream, cost of that other players dream is increased by 100% of its original cost. Cannot buy another players dream. o Charity box: can choose to roll 1, 2 or 3 dice for the rest of the game o Tax Audit box: pay out of cash on hand o Divorce box: player loses all cash o Lawsuit box: pay out of cash on hand

Other things to note: y Bank Loans o Loans must be in multiples of $1,000 and must be paid off in units of $1,000 o 10% interest per month (update expense and monthly cashflow on game sheet) y Paying off debt o Can pay off debt anytime (Note that Taxes, Other Expenses and Child Expenses are permanent expenses that cannot be paid off) y Bankruptcy o If monthly cashflow is negative at any paycheck box and player does not have enough $ to pay the amt o To declare bankruptcy:  Sell any no. of assets yer for the downpayment and lose 3 turns o If aft selling all assets, players monthly cashflow is still negative, wipe out of car loans, credit cards and retail debt and of their respective monthly expense payments  If monthly cashflow still remainds negative, player is officially out of the game

Appendix Assets: things that generate cash inflow, such as stock dividends, rental properties, or businesses (sth tt puts $ in your pocket) Recording of stocks/mutuals/CD : Stocks/mutuals/CD No. of shares Name of S/M/C Number of shares Cost/share Cost at which share is purchased

Stock split no. of shares multiplied by 2, cost/share divided by 2 Reverse split no. of shares divided by 2, cost/share multiplied by 2 *return stocks card back to the small deal pile after recording is completed Recording of Real estate: Real estate Name (eg. 3br/2ba) Downpayment downpayment according to card Cost cost

*keep real estate card with you until real estate is sold. *upon sale of real estate, profit = sale price - cost Liabilities: things that use cash, such as houses, cars, and so on (sth that takes $ out of your pocket) *upon paying off liabilities, cancel away corresponding expenses from total expenses Mortgage: a loan to finance the purchase of real estate Financial Independence: state of having sufficient personal wealth to live indefinitely without having to work actively for basic necessities Cashflow Quadrant: E (Employees): You have a job S (Self-employed): You own a job B (Business Owner): You own a system and people work for you I (Investor): Money works for you (To obtain financial freedom, must fall under B or I whereby passive income is generated) What is financial literacy? Ability to understand finance. Tip: buy assets, stay away from liabilities

Why is passive income important? Passive income is $ earned even when you arent actively working towards generating it. If your regular monthly passive income exceeds your regular monthly expenses, it simply means you have earned enough passive income to not need an active income anymore dont need to work yayy How stocks work? Tip: buy low, sell high How real estates work? Tip: earn passive income by renting out your apartments