The “rat race” is a phrase that describes the reality of most people. It refers to the endless, pointless, and self-defeating race towards non-existent finish lines and podiums of admiration. Interestingly, it explains the human nature of always wanting better and more beautiful things in life and constant competition with their peers. In this article, you will learn some tips to escape the rate race.
Generally, if you always feel stuck in a financial grind and have little or no savings despite earning a high income, you are in a rat race. And people who are in the rat race will always be broke irrespective of how much they make.
Surprisingly, the rat race is like a circuit. And when you join it, you will want to earn more to sustain your extravagant lifestyle. In a nutshell, people in the rat race have expenses that increase as their income increases.
They drown in high monthly loan payments and battle with high personal liabilities. Unfortunately, you can’t achieve financial freedom if you are living in the rat race.
Here are 7 strategic tips to escape the rat race:
#1. Differentiate Between Needs and Desires
One of the tips to escape the rate race is to understand the difference between needs and desires. If you buy anything to impress your friends or show off your class, it’s a mere “desire”, not a “need”.
People buy things that they desire these days. And this is making them spend more money than necessary.
So, the first tip to escape the rat race is to buy things you need. You can achieve this by always asking yourself the question, “do I need it?” Trust me, if you can practice this regularly, you will have control over your expenses.
#2. Define Your Dream Life
An excellent way to escape the rat race is to define your dream life. We all have different dreams in life. For instance, some people may want to spend their lives on tropical beaches while others may want to help out in a third world country.
Be sincere with yourself, define where you want to live, what you want to do, etc. Once you redefine your expectations, you will soon realize that your current lifestyle (rat race) isn’t what you want.
Again, the easiest way to live your dream life is to create a picture of your ideal situation. It will serve as an inspiration towards achieving it.
#3. Quit Your Unfulfilling Job
If your current job isn’t giving you fulfillment, you are probably in a rat race. Nothing is more boring and annoying than doing a job you dislike 40 hours every week. That alone can make you wallow in the rat race. Because you don’t like the job, you will always be living on the edge financially.
However, if you think leaving your current job will greatly impact your finances, you can discuss it with your boss. Let them know your current work setup isn’t good for you. If possible, give your boss a set of requests.
It may be unusual, but if you are a superstar employee, your employer won’t want you to go. So, they may reluctantly accept your conditions and let you do what you love without quitting the job.
Depending on your demands, your boss may ask you to work from home, give you less responsibility, and assign you new roles that get you closer to your dream.
#4. Save More
One of the tips to escape the rate race is to start saving. Cut down your expenses, and only buy the things you need. Spend less money on the things you desire.
Once you receive your income, the first thing you should do is put your savings aside. With this approach, you can save enough money for future investments and early retirement.
Savings help you prioritize your future financial freedom by living a frugal lifestyle. And when you save a large chunk of your income for several years, you will have enough money to live your dream life.
You may be tempted to say that money isn’t everything. Well, you are correct. But when it comes to escaping the rat race, money is the power you need. Sadly, some people may be in the rat race for a long time because they don’t have enough money to escape it.
#5. Have a Passive Income
Having a passive income source is one of the best tips to escape the rat race. It refers to any income that requires little or no effort to earn and maintain. Surprisingly, the earner only expends a little effort to grow their earnings.
If you want to escape the rat race, you should have a passive income source. It’s like earning income on autopilot without trading your time for it.
Interestingly, there are several ways to earn passive income. Some of them are:
- Dropshipping
- Running a blog
- Creating an educational course
- Becoming a social media influencer
- Investing in stocks and earning dividends
- Creating an app that solves a problem
- Investing in real estate and earning rental income
The list is endless. And if you want to escape the rat race, you should look into these, and other types of investments, that will earn you passive income.
#6. Become an Entrepreneur
Starting a business is a good escape route from the rat race. Of course, it’s not going to be easy during your early days. You may work more hours, put in more effort, get loads of rejections, and possibly fail a few times.
But if you are persistent and consistent, your efforts will pay off. The good thing about starting a business is that you no longer work for anybody. You now sit in the driver’s seat by doing what you like.
Again, running a business comes with risks. But if you are focused and you stay true to your goals, you may be living your dream life sooner than expected.
Read Also: Entrepreneur Mindset 101
#7. Start Investing
Investing is a good way to escape the rat race. If you invest in the right assets, you will earn enough money to live the life you dream of. There are several investment opportunities out there, so do your research, and invest in the right opportunity. If you are a beginner, you can read our articles on the best investment books.
These are the 7 strategic tips to escape the rat race. If you apply these tips in your financial life, you will escape the rat race sooner than you think.
