Monopoly is by far the best board game available; well, at least it is for me. Monopoly is not just a game; one of the benefits of playing Monopoly is that it can teach you important lifelong lessons regarding money. Over the years of playing, I have learned a few valuable lessons from the game – here are some that will relate to real life.

1. Cash is King

It’s great to buy properties and own as many as you can, but what happens when you have to pay taxes or rent to others? Having cash is crucial to be successful in monopoly; similar analogy can be applied to real life. Emergency funds are a must for everyone, they help pay for unexpected medical bills, car repairs, taxes and so on. Without an emergency fund you are left vulnerable.

2. Luck is Part of the Game

Luck is just part of the game as it is part of real life, one player may have a few doubles and fly across the board picking up properties while you barley get to purchase anything. You have to learn to live with it; you cannot control everything in life. The best strategy is to stay positive and take advantage of the opportunities that come your way.

3. It’s all about Relationships

Are you hard to deal with? Do you make fair deals? Do other players hate you or like you? Half the game is about building good relationships with other players, if you hold one of their property hostage chances are they will do the same to you. In real life it’s all about whom you know and what type of relationship you have with them, if you are social and welcoming person chances are you can be fairly successful – merely through the connections that you’ve built.

4. Strike While the Iron is Hot

Sometimes luck may be on your side and you may roll a few doubles, this is when you have to take advantage of the opportunities that come your way. Be ready to make a few purchases and improve your situation. Sometimes in life you may have a short-lived hot streak where you can make dramatic improvements in your life, you have to be prepared to take advantage of them.

5. Negotiation Skills

The game is all about negotiating and making deals, if you are too soft you will be taken advantage of and if you are too harsh nobody will make deals with you. Using proper negotiation skills are vital in this game. In real life we negotiate most of our lives; we negotiate with parents, with employers, business partners, banks, kids and so on. We spend most of our lives negotiating deals; hence you have to learn to be an efficient negotiator to get to where you want to be.

6. Improvements

If you just buy the properties and do no build on them you will not succeed in the game, you constantly have to reinvest in your properties and improve your position in order to move ahead. In life, you constantly have to improve your balance sheet, by increasing your assets and reducing your debt. You have to improve your financial position and reinvest to reach your goals.

7. Risk is a Must

In the game, you must take risks; if you don’t take risks, you will not win. Life, too, is about taking risks. Investing in companies or a business to increase your wealth requires you to take risks. No Risk, no Reward.

I asked Twitter what they learned from Monopoly

@Matt_SF Monopoly lessons – keeping an emergency fund is vital to survival! [Stead Fast Finance]

@amabaie I learned that it takes a long time to make a fortune. Like, almost all day! [The Happy Guy Marketing]

@moneyfunk That I’d make a mediocre realtor, at best. And my son would be wealthier than me. [Money Funk]

@SuburbanDollar quality over quantity. One ok monopoly beats having half of every other monopoly. [Suburban Dollar]

@FMFblog Better to be lucky than smart. 😉 [Free Money Finance]

@GoBankingRates That once I own multiple hotels I’m allowed to laugh in my brothers face. [Go Banking Rates]

@MyMoneyMinute Don’t play AGAINST your wife unless you want a fight! Goes for money OR Monopoly! LOL [My Money Minute]

@clarifinancial Don’t always buy the first thing you land on. Owning your corner is more important than broadcasting your resources. [Clarifinancial]

@BudgetsAreSexy Going to jail – bad. Winning beauty competiton – good! [Budgets Are Sexy]

@BSimple Keep them coming!! [Simple Financial Lifestyle]

@EvolutionWealth it’s all about liquidity (cash baby) and yes money will buy your way out of jail. Oh yeah, you can never avoid taxes. [Evolution of Wealth]

@sohallor Buy Boardwalk then pay a luxury tax 1 roll later is a life lesson. [ING Direct]

@prosperousfool How about life lessons? I learned that it isn’t over just because you had a few bad rolls. [Realm of Prosperity]

@InvestorJunkieIn Monopoly if the banker never goes bankrupt. If it runs out of money it can always print more. Just as in real life. [Investor Junkie]

What lessons have you learned from playing monopoly? Any other games have taught you important life lessons?