Accordingly to Wikipedia, rat race is a term used for an endless, self-defeating or pointless pursuit. It is just like a rat trying to escape whilst running around a maze or in a wheel.
In an analogy to the modern city, many rats in a single maze run around making a lot of noise bumping into each other, but ultimately achieve nothing (meaningful) either collectively or individually.
Rat race is a term often used to describe work or excessive work in particular. If one works, one is in the rat race. This terminology contains implications that many people see work as a seemingly endless pursuit with little reward or purpose.
The increased image of work as a "rat race" in modern world has led many to question their own attitudes towards work and seek a more harmonious Work-life balance. Many believe that long work hours, unpaid overtime, stressful jobs, time spent commuting, less time for traditional family life, has led to a generally unhappier workforce to enjoy the benefits of increased economic prosperity and a higher standard of living.
Are you stuck in the rat race?
If you work minimum 8 hours a day and trade your time for paycheck in order to pay bills, there is a high possibility that you are caught in rat race.
Escape from rat race? Why?
Don’t get me wrong that rat race is something very bad that you must escape from it. It is your choice whether you are happy to stay in the rat race or not. The only challenge that I see in rat race is that even if you win the race, you are still a rat. No matter what you do in the rat race, success is uncertain. However, if you do nothing about it, worry about your retirement is on the way.
Accordingly to surveys performed in US, it showed that if we take any group of 100 people at the beginning of their working career and follow them for 40 years until they reach retirement age, according to the Social Security Administration:
- Only 1 will be wealthy
- 4 will be financially secure
- 5 will continue working because they have to for a living
- 36 will be dead
- 54 will be dead broke and dependent on the Social Security checks, relatives, friends and even charity for a minimum standard of living.
These, of course, are US statistics. In the rest of the world, especially the developing world, the scenario might be far worse.
In short, there is only 5% of the population have enough to retire by age 65. There will be a high possibility of 95% that we will be either dead or dead broke by 65 years old. Isn’t that scary?
How do the rich escape from rat race?
The rich who is financially successful do not trade their time for money. Conversely, the rich leverage on other people money and time to make money.
Instead of working hard for money, the rich ensure money working hard for them through investment.
Property investors leverage on other people money by borrowing from banks to purchase properties or assets. They rent out the properties and have the tenants pay off the loans. Other than getting the tenants to pay off their assets, the property investors make even more money when their assets appreciate in value. Property investors leverage on other people money to make money.
Business owners like Bill Gates leverage on other people time by hiring employees to work for them. Investors, who invest in stock market, leverage on business owners and employees time to make money for them through capital gain from stocks.
Can an average ordinary person escape from rat race?
Absolutely Yes!
No doubt it is difficult to leave our comfort zone and risking the secure regular paychecks to pay off our bills. We need to take the first step and action to start somewhere. We need to change our mentality and reprogram our minds to mirror the millionaire minds.
At the same time, we have to start financial planning and saving to cumulate capital. Acquire the skills to generate passive income. Learn how to invest in assets like properties, stock market, etc or own and run businesses.
As our assets growing which in return generating more money, more money will increase our capability to increase the number or size of assets. The same “money working hard” cycle repeats by itself until such time that we no longer need to trade our time for money where we can live, work, play and give freely.
Congratulations! That’s the time that we are out of rat race and achieve financial freedom!
In an analogy to the modern city, many rats in a single maze run around making a lot of noise bumping into each other, but ultimately achieve nothing (meaningful) either collectively or individually.
Rat race is a term often used to describe work or excessive work in particular. If one works, one is in the rat race. This terminology contains implications that many people see work as a seemingly endless pursuit with little reward or purpose.
The increased image of work as a "rat race" in modern world has led many to question their own attitudes towards work and seek a more harmonious Work-life balance. Many believe that long work hours, unpaid overtime, stressful jobs, time spent commuting, less time for traditional family life, has led to a generally unhappier workforce to enjoy the benefits of increased economic prosperity and a higher standard of living.
Are you stuck in the rat race?
If you work minimum 8 hours a day and trade your time for paycheck in order to pay bills, there is a high possibility that you are caught in rat race.
Escape from rat race? Why?
Don’t get me wrong that rat race is something very bad that you must escape from it. It is your choice whether you are happy to stay in the rat race or not. The only challenge that I see in rat race is that even if you win the race, you are still a rat. No matter what you do in the rat race, success is uncertain. However, if you do nothing about it, worry about your retirement is on the way.
Accordingly to surveys performed in US, it showed that if we take any group of 100 people at the beginning of their working career and follow them for 40 years until they reach retirement age, according to the Social Security Administration:
- Only 1 will be wealthy
- 4 will be financially secure
- 5 will continue working because they have to for a living
- 36 will be dead
- 54 will be dead broke and dependent on the Social Security checks, relatives, friends and even charity for a minimum standard of living.
These, of course, are US statistics. In the rest of the world, especially the developing world, the scenario might be far worse.
In short, there is only 5% of the population have enough to retire by age 65. There will be a high possibility of 95% that we will be either dead or dead broke by 65 years old. Isn’t that scary?
How do the rich escape from rat race?
The rich who is financially successful do not trade their time for money. Conversely, the rich leverage on other people money and time to make money.
Instead of working hard for money, the rich ensure money working hard for them through investment.
Property investors leverage on other people money by borrowing from banks to purchase properties or assets. They rent out the properties and have the tenants pay off the loans. Other than getting the tenants to pay off their assets, the property investors make even more money when their assets appreciate in value. Property investors leverage on other people money to make money.
Business owners like Bill Gates leverage on other people time by hiring employees to work for them. Investors, who invest in stock market, leverage on business owners and employees time to make money for them through capital gain from stocks.
Can an average ordinary person escape from rat race?
Absolutely Yes!
No doubt it is difficult to leave our comfort zone and risking the secure regular paychecks to pay off our bills. We need to take the first step and action to start somewhere. We need to change our mentality and reprogram our minds to mirror the millionaire minds.
At the same time, we have to start financial planning and saving to cumulate capital. Acquire the skills to generate passive income. Learn how to invest in assets like properties, stock market, etc or own and run businesses.
As our assets growing which in return generating more money, more money will increase our capability to increase the number or size of assets. The same “money working hard” cycle repeats by itself until such time that we no longer need to trade our time for money where we can live, work, play and give freely.
Congratulations! That’s the time that we are out of rat race and achieve financial freedom!
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