How to Escape the Rat Race: Achieving Financial Freedom

 

Introduction

For many people, their typical Monday through Friday involves waking up to a ringing alarm, commuting a long distance to work, taking orders from a boss for eight hours, commuting back home, leaving them with just enough time to eat and watch a show on Netflix. 

Unfortunately, most people are destined to repeat this mundane way of life for the next 40 years, trapped in the perpetual cycle of working to pay bills and ultimately make the company they work for richer than they already are. Fortunately, there is a way out of this rat race, if you know the right moves to make.

Why Escaping the Rat Race is Difficult

First off, let's address why escaping the rat race is so difficult. When was the last time you met someone who truly loved their job? The reality is that meeting someone who feels this way is a rare occurrence. Recently, polls show that roughly 50% of employees are somewhat satisfied with their jobs. That means that millions of people are going about the day-to-day grind, praying that one day they'll be able to escape the rat race and realize the freedom that they've always wanted.

As you're about to see, achieving the goal of escaping the rat race is easier said than done. How many people do you know that have been able to successfully achieve this feat? Chances are, the only people you know are at least double your age, and you're like 50% of the workforce and have no intentions of working at your job forever. 

It's for this reason that anyone who doesn't want to play the role of an employee forever should have achieving financial freedom as their top financial priority. This means that you are continuously striving to amass enough assets that will cover all of your living expenses and allow you to never have to rely on a paycheck ever again.

The Obstacles You Will Face

Now you may be thinking that the obstacles you face in your attempt to escape the rat race begin as soon as you start your career. In fact, the issues begin many years prior, during your upbringing. Unfortunately, most people are brought up with very little financial education, and this results in not understanding the fundamental principles of building wealth, including budgeting, saving, income generation, and, of course, investing.

The reality is that if you don't even know the rules of the game, it's going to be incredibly hard to win. This lack of knowledge prompts people to seek guidance, but unfortunately, this only leads them further on a path towards financial mediocrity and a life of indentured time.

What do I mean by this? I mean that you're likely to follow the path that you see most others taking, which is signing up for college and hoping the degree you'll end up receiving will be a path to an income you can use to better your financial situation.

•You may get a degree, but if you're like 55% of college graduates, you'll also be leaving school with an average student debt balance of $28,950. That takes the average graduate a whopping 20 years to pay off. This means that you're starting your quest for financial freedom from a negative position.

Yes, you have a job that can get you out of the situation, but the good news is that the majority of graduates do end up getting a job after college. However, that doesn't necessarily mean that they will be swimming in cash anytime soon. Recent reports showed that the average college graduate now makes around $55,000 when entering the workforce. 

While this may seem like plenty of money that you can use to start paying off that student debt and unlock your financial freedom, when you look a little closer, that rosy thought starts to sour.