One day, I want to get out of the rat race; I want to break free of the cage.
What does getting out of the rat race mean? The meaning is different for each person, but to me, retirement and getting out of the rat race are synonymous: They both mean freedom from working out of necessity, simply to survive.
Getting out of the rat race means having the freedom to work on my own terms, doing what I love, and enjoying life without a daily grind.
So, how do we get there from here? I believe that there are three important strategies to getting out of the rat race:
- Cutting expenses
- Increasing income
- Having the proper mindset.
Cutting expenses
Cutting expenses is simple: a dollar saved is worth more than a dollar earned. Why? Well, our dollars get cut down in size by taxes and other expenses, before we even get to see them. Therefore, the first key to getting out of the rat race is to start practising frugality and to get out of expensive consumer debt!
Increasing income
The second strategy is to increase your income. There are many ways to go about this, including starting a side business, broadening your skill set in order to advance in your career, and moving to an area where the pay is good and your skills are in demand.
Having the proper mindset
Finally, in order to get out of the rat race, you have to believe in it. You have to be willing to be different; to be the guy (or gal) who doesn’t put all of his/her time and energy into keeping up with the Joneses. You have to be willing to defer some consumption today in order to enjoy higher consumption down the road. You have to have something to look forward to, something to dream for; something to live for beyond tomorrow.
Getting out of the rat race
Still wondering how you can move toward getting out of the rat race? Well, no worries, because I have a lot of great advice from my fellow Yakeziers, which covers everything from frugality, to passive income and online businesses, to inspiration and motivation. They have a lot of wisdom to offer in the list below specifically selected in order to help you get out of the rat race.
If you are part of the Yakezie challenge and I forgot to add you to the list below, please let me know and I will add you! Without further ado, here is the list:
- 151 Days Off: 2010 Goals
- Barbara Friedberg Personal Finance: MBA Course: Investing & Portfolio Management-Class 4 – Get Rich by being Passive
- Beating Broke: Beating Broke Rules: Dedication
- Bible Debt: You will fall for anything!
- Bucksome Boomer: Investing to Retire Early
- Budgeting in the Fun Stuff: Retirement Savings
- Canadian Finance Blog: Passive Income – How to Supplement Your Retirement
- Car Negotiation Coach: Save on gas – 11 extreme tips
- Christian Common Cents: Money Isn’t Good or Evil
- Conquering PF: Speak to the Future
- Consumerism Commentary: Start the Decade Off Right: Do Something You Love
- Cool to be Frugal: Transition From the Corporate World to Your Own Business – Lessons Learned
- Couple Money: Balancing Freelancing with an Office Job
- Darwin’s Money: US Austerity Coming Says Obama – How it Will Affect You
- Deliver Away Debt: The Debt Destroyer | The System
- Digging Out From Our Mess: How do you define RICH?
- Dr. Dean: Take This Short Personal Finance Quiz: I DARE YOU!
- Early Retirement Extreme: How I became financially independent in 5 years – Part I
- Eventual Millionaire: What is True Wealth?
- Everyday Tips and Thoughts: Social security – will it be around when you retire?
- Evolution of Wealth: Diversifying Your Income Streams
- FinancialBondage.org: Book review- Dave Ramsey The Total Money Makeover
- Financial Samurai: Feeling Like A Burden Is A Terrible, Terrible Thing
- Financially Digital: Banks or Money in the Sock Drawer?
- Financially Poor: The Path To Financial Freedom: Get Your Mind In The Game
- Free From Broke: Payoff Mortgage Faster – How Do I Do It? – Four Ways
- Frugal Confessions: ANNUALS VS. PERENNIALS: WHERE WOULD YOU LIKE TO BE ONE YEAR FROM NOW?
- Frugal Zeitgeist: Cheapest Countries 2010
- Funny about Money: Financial Freedom: An Overview
- Girl with the Red Balloon: The “why” in minimalism
- Invest It Wisely: Living to 100 and Beyond: Building an Infinite Portfolio
- Learn Save Invest: The Best Financial Advice
- Len Penzo dot Com: Behind the Green Curtain: An Insider’s View of the Millionaire Mind
- Little House in the Valley: Newlywed Financial Bliss Box
- Maximizing Money
- Miss Thrifty: Fiftysomethings with no money? Not me, guv!
- Money Beagle: Staying Motivated During The Personal Finance Blahs
- Money Crush: How to Make an iPhone App When You Don’t Know How to Program
- Money Funk: Early Retirement Extreme 21-Day Makeover
- Money Green Life: Budget Your Own Finances: Have More Control Of Your Money
- Money Help for Christians: Starting Your First Business: 5 Things You Should Know
- Money Reasons: Losing Control To Lifestyle Inflation
- More Style Than Cash: 25 More (Inexpensive) Ideas to Give Your Life Luxury
- My Financial Objectives: Everything Happens for a Reason
- My Journey to Millions: Time is Valuable Even When Creating Multiple Streams of Income
- My Money Minute: #015 — The MyMoneyMinute Economic Stimulus Plan (Part 1)
- Narrow Bridge Adventures: What is Inflation and How Does it Impact Me?
- Nerd Wallet: Unemployment is the Mother of All Invention
- Not Made Of Money: How to Prepare for your Retirement Early and Well
- One Money Design: Make Wise Financial Decisions: An Unhurried Approach
- Out of Debt Again: Saving Money on Energy
- Parenting Family Money: Five Steps To Improve Your Family’s Nutrition
- Peak Personal Finance: Are You Ready to Retire?
- Personal Dividends: Planning for a Prosperous Retirement
- Personal Finance By The Book: Debt Free in One Year: A True Story
- Personal Finance Firewall: The Importance of Extreme and Specific Focus
- Personal Finance Journey: 4 Milestones on Your Personal Finance Journey
- Planting Dollars: Is Passive Income Possible?
- Punch Debt In The Face: Don’t be the awkward cat lady.
- Rainy Day Saver: Do You Define Yourself By Your Job?
- Redeeming Riches: Will You Have Enough Retirement Savings?
- Retirement Investing Today: Investing mistakes I’ve made – not considering investment fund fees
- Saving Money Today: Famous Quotes About Money
- Simple Life in France: Radical simplicity, frugality–for couples only?
- Single Guy Money: If I Won the Lottery…
- Single Mom Rich Mom: The ratio-nal way to retire early
- Smart On Money: If Your House Is Worth Less Than You Owe, Is It OK To Just Stop Paying Your Mortgage And Walk Away?
- Squirrelers: Financial Freedom via Portfolio Income
- Stay at Home Mom CFO: Don’t Count Your Money Until it’s “There”
- Sweating The Big Stuff: The Millionaire’s Retirement Plan Is Backwards
- The Amateur Financier: Book Review: Rich Dad, Poor Dad
- The centsible life: Give without going broke
- The Consumer Boomer: Doh! Avoid These Retirement Blunders
- The Debt Hawk: 4 Steps To Change Your Relationship With Money Forever
- The Life of an Insurance Salesman: You Never Know Who Someone Might Know
- The Saved Quarter: The Best of The Yakezie Challenge
- The Wealth Artisan: Creating Space Series: Retire, or Work Until the End of Time
- Tight Fisted Miser: Mini-Retirements
- Ultimate Money Blog: Having a Baby- Is it Cheaper When You’re Younger, or Older?
- Watson Inc: Thoughts on Escaping The Rat Race
- Wealth Informatics: Different retirement plans – What is right for you?
- Wealth Pilgrim: Best Investments for Retirement Income
- Well-Heeled Blog: 5 Year Travel Plan: Making Your Travel Dreams a Reality
- youngandthrifty.ca: youngandthrifty review: Rich Dad Poor Dad by Robert Kiyosaki
- Zordane.com: Making Extra Money – Good or Bad?
Carnivals
I was included in the following carnivals this week; if I forgot to mention you, please let me know!
- Yakezie Challenge Link Rodeo – Special Midweek Edition
Have a good weekend, everyone!
[…] week, I talked about the three stages of financial despair. We all want to get out of the rat race, but before we get there, we need to get out of the hole and onto level […]