Escape from the Rat Race.

Happiness by Steve Cutts

What exactly means the term “Rat Race”?

…and what is Financial Independence?

We need to deepen the meaning of these two concepts.

A rat race is an endless, self-defeating, pointless pursuit.

The phrase equates humans to rats attempting to earn a reward such as cheese, in vain.

Today the Rat Race is basically our competitive struggle to work and get ahead financially, to buy stuff we don’t use, to impress people we don’t like.

Citizens are rats in a maze, expending their life energy running pointlessly, achieving nothing meaningful.

For many people work is an endless pursuit of an impossible happiness with little reward or purpose.

For many of these, the reward is the “right to buy stuff”.

The price of this “right” is an absurd cyclical commute between home and work, which steals your time and your life, and which makes you feel like a mouse running in a circle or in a hamster wheel.

Do you have a job and a decent income, but you’re still living paycheck to paycheck?

Are you buying a lot of stuff you barely use?

Are you jealous of your neighbor when he drives home in a shiny new car?

Good job! You are running the rat race.

How to escape from the Rat Race.

ok. Now that you know you’re in the rat race, you have to learn how to get out of it and pursue Financial Independence.

There are a few options to quit the rat race:

  1. Marry a rich guy/girl.
  2. Inherit a large sum of money.
  3. Create a secondary income.
  4. Become an entrepreneur. Find something that generates wealth..
  5. Spend less than you earn, invest the difference.

Among all these options, n. 5 is the simplest to reach the Financial Independence.

Let’s focus on “spending less”: How to do it?

  • Insurance – See the best offers
  • Student Loans – Pay it off as soon as possible. Alternatively, refinance it if you can.
  • Cable / Internet: cut the cable, keep the Internet.
  • Subscriptions – cut them all. Yes, Netflix too.
  • Food: eating out costs a lot. Cook food in your home. Use the recipes you find on YouTube!
  • Rent – Do not buy a house. Don’t make debts that you can’t pay in the short term. If you are young and really can’t afford to live by your means, have no shame in returning with mom and dad.

In addition to cutting the unnecessary expenses, you need an emergency fund where you can keep some money for sudden expenses and difficult days. Keep at least 3 months of savings aside.

Did you do everything I told you?

Congratulations, you are now on track to escape the rat race and achieve financial independence.