When the Rules Change in The Middle of the Game

How do you feel when someone changes the rules in the middle of a game or transaction and puts you at a disadvantage?

We’re all creatures of habit who like to establish routines that are comfortable, and that we feel that we control. We live and base decisions based on those habits and the rules as they exist.

At some point, nearly all of us realize that we’re not in control of as much as we desire. In addition, we experience rule changes by law, court edict, or some other force beyond our control.

Wouldn’t it be nice to dictate the rules in order to always win? When I was growing up a cousin and I would play Monopoly with our younger brothers. Because we were older, we dictated the rules. This meant that regardless of the events of the game, we would interpret the rules so that we would win.

Early on everything went well because our younger brothers were content merely to be able to play the game with us. We had a great time ruling the roost (no pun intended), winning, and never risking loss.

As our brothers grew, and had other experiences, they realized that they were being taken advantage of by us. The final result was that our monopoly on Monopoly ended.

Once we had to play the game fairly, it wasn’t nearly as fun for us, but it was much more fun for our brothers. Their freedom brought an end to our tyranny.

—

In a similar vein, we live based on the rules of our country, state, city, employer, family and possibly others. We make decisions that will benefit us and our family based on those rules.

Sometimes changes made in the rules we live by happen suddenly and with little or no notice. At a minimum, they disrupt our routine and force us to adapt to return to a comfortable life. More often, we face harm financially and possibly to our reputation.

The 1986 tax reform act, which Congress passed, is an example worth remembering. Designed to simplify the tax code and raise revenue, the changes also had more far reaching effects.

One of the more dramatic revisions was the significant increase in the amount of time that investment real estate had to be depreciated. The economics of the real estate market changed overnight and with minimal notice.

Because of the extended depreciation period, properties became less valuable as an investment. Because properties became less valuable, there were fewer people interested in buying property. Because of fewer people buying properties, prices plummeted. Because prices plummeted, renters became buyers, which adversely affected the rental property market.

The spiral continued when people lost their jobs because of the chain reaction. As unemployment rose, people were unable to pay their rent or house payment, which further expanded the housing supply in a declining market.

Foreclosures, bankruptcies and the savings and loan problems of the 1980’s followed. In short, many people were harmed financially and otherwise who played by the rules, but the rules were changed in the middle of the game. Eventually the buyers returned and markets rebounded, but not without a lot of scars that still exist.

—

That rules change in the middle of the game of life doesn’t mean that we shouldn’t play nor strive to achieve our goals and dreams. It does mean that we should anticipate unexpected changes, prepare for different alternatives, recognize change as early as possible, and adapt to the changes in order to minimize loss and maximize success.

The difference can be described as not playing out of a fear of loss, not playing and taking risks without a complete understanding of the game, but playing the game taking calculated risks to improve our likelihood of success.

We should not expect nor rely on a do-over, government bailout, or other escape from the consequences of our decisions.

—

Who can change the rules that would affect your life? What can and are you doing to observe and anticipate a change that puts you and your family in peril? What can you do to reduce your risks?

© 2019 — Richard V. Battle

Excerpted from Conquering Life’s Course: Common Sense in Chaotic Times