How to avoid being stuck in the rat race forever

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There are so many people stuck in the rat race and desperate to get out.  With the amount of credit offered to people it’s easy to understand how they get into that position.  We were out looking at cars for my husband as his is needing replacing.  We were looking at one and I asked the salesman for some figures.  I wanted to see the different finance options available, as its been a while since we’ve changed cars.   He kept pushing this PCP scheme and telling me it’s what most people go for. I assumed it must be good until he pointed out why they  go for it.

He gave me the figures and pointed to the monthly payment.  He was surprised that I was more interested in the overall cost rather than the monthly payment. Most people are only interested in being able to afford the monthly payment he told me.   I was quite shocked at that because whilst the monthly payment was affordable, with the interest charges the overall cost was extortionate and we would still owe a huge amount at the end of the period.  We could pay of this amount and own the car, use it to start another PCP or give back the car and not owe another penny. 

It just highlights why so many people are stuck, it’s a vicious circle, they  can’t escape the rat race because they need that salary to cover heir costs and because they’re  miserable they  end up taking more credit to buy things to make them feel better. Any pay rises or bonuses are spent on material things to cheer themselves up.  I used to think like that, I’ll pay it off when I retire, and downsize the house.  Why?  Why not get into a position where you have time and financial freedom and enjoy life now not when you retire.  It can be done,  it is possible to escape the rate race but you do have to make sacrifices. But let’s face it all you’re doing now is sacrificing time for money. 

I did it, I left my corporate job in 2014, I had a very good salary and the pension and benefits were also good, but I hated it.   I decided there had to be something more and I was not prepared to wish away my life waiting for retirement not to mention what it was doing to my health in terms of stress.  My husband was working full time and encouraged me to take that leap.  He could see what it was doing to me. I started really looking at our finances.  I had nothing else to go to at that point but was confident the right thing would turn up and it did.

I started thinking "do I really need to be earning what I am earning".  We had a few things we were paying off but I had started to reduce that a few years earlier.  Back then I wasn’t thinking of quitting but I was always fearful if anything happened that I would not be able to get another job at that salary.  I’d just turned 50.

I really started to look at my spending habits. And realised that I was wasting a huge amount of money on things to make me feel better like clothes, expensive holidays, take-aways,  meals out at the weekend to de stress. 

Whilst these may not seem a lot it quickly adds up.

Then there are the expenses directly associated with work.  The fuel, parking, the car, do you really need that car.   The clothes for work,  lunches, coffees.  If you have to stay away for work, usually they’ll pay some of the expenses but it can become expensive if you’ve got nights out with colleagues.

If you are serious about escaping the rat race take a really good look at your finances.  It’s amazing how much you can save when you’ve got the time to plan.  You can preparing for your departure.

I knew I wanted my own business, working from home without the need for staff.  I came across The Six Figure Mentors which is a digital training programme, it has taught me the skills and mind-set needed to set up my own online marketing business.  I started out with minimal online skills and I wasn’t even on facebook.  A lot of people start part time and work around their jobs until they reach a stage where they can afford to leave. It was not an option for me because I had already left my job.

It takes time to build a business but this kind of business offers the freedom to work from wherever and whenever I want and in time will give financial freedom.  I’m not sitting waiting for financial freedom I am enjoying the journey.

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