Hay Day Economics

Hay Day

 Sorry for the lack of updates. I had Certified Financial Planner test prep classes during weekends and it took a lot out of me (not really, just looking for an excuse). I will be sharing about the things I learnt, but this article will focus on the things I learn from my daughter's (7 years old) and my (32 years old) favorite game (for a while), Hay Day.

When she started playing it, she was hooked. I had to check on what she was getting hooked on because games these days, they change your behavior. It's almost like salat, you check in at least five times a day. I asked her for a tutorial, then I started to get hooked on it and learned a few things.

1. The relationship of production and wealth.
You can only make money if you produce something. You buy machines to make clothes and food, then the money will come. Life's not so different. A company hires you because you produce something and the company gives your income in return.
If you're looking to increase your income, there are two things you can do, ask for a raise, or produce something else. I'm not good at negotiation, I cannot sell myself, but maybe there are things that people need that I can help. List the things that you can offer and how much you'll charge. Voila.

2. Accumulate by managing consumption.
One. You start with land and capital (also an important thing). Two. You buy seeds of hay and corn from your capital. Three. You produce but you don't consume all. You save some left and you start back at one by preserving the capital and reusing the land. With that, you accumulate and able to expand.

3. Expand then comes the complications and boredom
This is the part where things started to get complicated. I had so many machines and produce, it was getting a little overwhelming. It's actually where I started to get bored with the game. I'm probably not the guy to own a big enterprise. Not a future Gates or Bezos.

I'm not sure if money will bring complications and boredom, but the good news is with money all you need is a brush, spit, rinse routine to accumulate and reach prosperity.

In Every Debt That Must Be Repaid...

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Mary Poppins © Disney. All Rights Reserved

There once was a beautiful lady that floats down from the clouds with an umbrella to answer the call of people who are in a financial mess. She help their households by being firm and lay the ground rules for them to succeed financially. But, she doesn't forget that in all of us, their lies a child who yearns of play. She reminds us that  "in every debt that must be repaid, there is an element of fun. You find the fun, and -SNAP- repayment's a game!"

I wish such lady or at least a reality show called financial literacy nanny exists. Would it be possible to find the fun in repaying debt? Sure! In order for it to be a game, you must divert your attention from it being a burden to being an activity that is a challenge waiting to be conquered.

Let's call the game "ZERO!" The race to zero debt.

The Rules of ZERO! :

1. To win, players must have zero debt.
2. Players start with a certain amount of debt. Players must know the outstanding balance, interest rate and minimum monthly payments required.
3. Players must assign a person as witness/supporter making sure that you play the game until it's finished.

Strategy I recommend on winning the game :

• Make niyyah to win the game!
• Don't accumulate new debt.

• Repay from debt with highest interest, but put an effort into negotiating a reduction on your interest rate. You can spice up the game by assigning a number to each of your card, and your spouse or friend acting as a witness and supporter rolls the dice to see which card you get to repay first.
• Know what is required of you in terms of monthly payments.
• Stick with the plan!

Regardless whether you prefer in repaying debt with smaller outstanding balance or based on the highest interest rate, the most important thing is to stick to whatever strategy chosen to win the game. The focus should be on the necessary steps needed to be taken. Taking the thirteenth step is about the step to be free of debt, especially consumer debt. Remember, it's all a game. A game you can win.

And the worldly life is not but amusement and diversion; but the home of the Hereafter is best for those who fear Allah , so will you not reason?

6. Surat Al-'An`ām (The Cattle; 32)