If you have read Robert Kiyosaki, the famous author specializing in the field of personal finance, you may be familiar with the expression “rat race”
Kiyosaki uses this metaphor to express the situation, so typical nowadays, in which a person exhausts his energies trying to earn money, but then spends it all and remains stuck in the same place. Just like the rat runs and runs around a wheel and does not advance.
The output of the rat race is build financial health. The more financial freedom you gain through your decisions, the further out of the rat race you find yourself.
This, unfortunately, is not taught in schools. When we have to make important decisions about what to study, what kind of work to do and what lifestyle to have, our brains have not yet internalized this type of perspective. We tend to take what others do for good. And that increases our chances of getting caught in the rat race.
In this post we are going to talk about some strategies that can be very useful, when we are starting to make important decisions, to avoid ending up in that usual situation.
1. Choose a career path that pays well
“Follow your passion” is a mantra that often leads to decisions that lead us to difficult destinations. The harsh reality is that it is very difficult to progress in life without a good level of income. You can do what you like, yes, but your chances are greatly reduced if you can’t save or invest.
Life takes many turns. To have financial flexibility is key to being able to skillfully navigate changes. What is a passion today can become a burden tomorrow if you don’t have the flexibility to maneuver.
If you choose a well-paying job, even if you’re not passionate about it at first, and good financial habits, you’ll be more able to pivot into a way of doing things that you’re more passionate about. Therefore, your decisions about which career path to choose may need to prioritize your strengthsand not so much your passions.
2. Do not stop learning and become an expert
When someone really knows about something, they immediately see it. And the reason is none other than this: The vast majority of people are not experts because they have no interest in being. Doing a “good enough” job professionally is enough for them. They do not seek excellence.
This has a very obvious practical implication that you have no doubt appreciated in many different fields: People who are experts stand out. And they have the ability to charge much more for their knowledge and services than most professionals in their sector, because customers raffle them off.
Continuing to invest in yourself through training and learning knowledge and skills related to your professional career is one of the best decisions you can make to multiply your income level and expand your opportunities. And that’s a turboprop to get out of the rat race.
3. Explore career opportunities
If you have taken the first two steps and are working in a dynamic and well-paying industry, it is very likely that career opportunities will arise around you continuously.
In this context, one of the most effective strategies to maximize your income is seize those opportunities proactively: Get to know them, explore them, establish a relationship with the companies that provide them. And eventually, if the right circumstances are right, jump.
In the past it was very common to stay in the same company or organization throughout our professional lives. Now things don’t work like that. Changing companies is not seen by employers as something negative, but as sign of initiative and ambition. And these changes usually entail an increase in financial compensation to encourage the jump.
Proactively explore opportunities. If you are a good professional, it is one of the easiest sources of income increase to achieve.
4. Automate savings and investment patterns
Once you’ve landed in a situation where you have good earning power, there’s only one thing left for you to do. Something that seems easy, but what we often screw up:
Not spending all that income inflating our lifestyle as time goes on.
The most effective formula to achieve this goal is automate your cash flow: As soon as you receive your salary in the checking account, send a part to your savings and investment account and spend the rest.
With this simple automation and the steps above, you’ll be out of the rat race in no time. Give it a ball, Moneytimer!
If you want to access similar content, check out our #Lifestyle section.
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