Stuck in a Financial Rat Race?
From the moment of our birth, we join a circuit (or perhaps, a seemingly long track) and begin to race towards a non-existent finish line and podium for admiration. We want better and more beautiful things in life, all the while competing with our peers. We often feel an undying need to get ahead of everyone else. We want a bigger house, a fancier car, luxurious apparel, and high-end gadgets. We continuously want more expensive things in life with simply no end in sight. Our world sometimes feels big and wide with little critters frantically moving around but without purpose. Is this our reality?
The term “rat race” first came into colloquial use back in the 1930s to describe any exhausting and usually competitive activity or routine, especially a pressured urban life spent trying to get ahead with little time left for leisure, contemplation, etc.
Essentially, the rat race applied to anyone who felt stuck in a financial grind and frustrated with no time for their own wants and hobbies. This phenomenon applies more particularly to professionals working in urban cities, whether industrial or white collar.
Most everyone feels drawn to this race ultimately, whether willingly or not. The rat race stems from the primary human mindset of earning more money to sustain an ever-increasingly extravagant lifestyle. It seems people study half their life to earn a degree in order to land a high-paying job and then think their struggles have ended. For many, the battle has just started at that point.
Human nature always seems to lead us to want better things. The more money a person makes, the more he or she feels justified in spending. If you drive a hatchback right now, sooner than later, you will feel you deserve better, perhaps even a luxury vehicle.
People get stuck in high-paying jobs that do not leave them any time for themselves. And soon, the person feels locked in a vicious circle of earning more and spending more. Loans, high monthly loan payments, and personal liabilities kill the living force inside the person, and soon, the person lands in another conflict-existential crisis.
People who are stuck in a rat race too often feel money can solve every problem in life. They forget that money’s true value has nothing to do with its numbers and amounts but with how it contributes to (or takes away from) their well-being. Money can take an unimaginable emotional, mental, and physical toll on a person’s mind, body, and soul.
Anyone stressed by the rate race can always opt for a slightly less stressful job, at the likely cost of getting paid less. If you go this direction, you might expect to earn a few thousand dollars less, meaning you likely won’t afford an upgrade to your car or redo your home’s upholstery every year. However, you will have peace of mind, which you can easily value much more than money.
Optimizing expenses – a bid to escape the rat race
Now that you know about this life-sucking loop, you will likely want to devise a means to get loose and break free. Cheers, Freddie!
To escape the rat race, you need to understand the root cause of this problem. The main problem lies in the possibility that many or even most of your friends, neighbors, and co-workers may only consider you a successful person if your material possessions reflect extravagance and luxury.
“I need to get those hot wheels.”
“That diamond necklace would look stunning on her.”
“Gotta get Jake that iPhone XX.”
Such thoughts push you to achieve more (which can even feel selfless and amazing) but as a result, you slog unbelievable hours at a job you might hate from the bottom of your heart. Would anyone find this satisfactory? Nope. Most of us would find such circumstances unwanted, unnecessary and pointless.
For most of your life, you have heard others talk of the importance of saving more, but no one has ever taught you how to actually do it. No one tells you that to save more means you will most likely have to spend less. Why attempt to save money if you cannot control your spending?
Cost controls should make up the core of your monthly budget and finances. To cut it short, save it for a rainy day.
What to do?
Differentiate between needs and desires
Start with the notion that you should feel no shame in living modestly. You don’t need a huge house with rooms you will never use. You don’t need it. Too often, we buy such homes to impress our friends as a status symbol in society. We probably desire it, but we don’t need it.
Whenever you confront a major purchase, ask yourself, “do I need this?” Most likely, you will immediately respond, “no.”
Focus first on things that are truly needed and minimize materialistic desires. Instead, ask yourself this central question: “What truly makes me happy?” It may take a while to find the answer, but once you do, you can then spend without any regrets and a few second thoughts.
Conscious spending
Few regret traveling to new destinations or going on vacations. However, most of us have no need to constantly upgrade our entire wardrobe.
After a night out at the movies, you can always choose to head home for a humble homemade meal with a glass of wine instead of spending about a hundred dollars or more on dining out.
Spend your money conscientiously, understanding where you need it to go the most. Make honest choices, and you will almost always see a sudden decrease in your spending habits. You don’t need to stop spending altogether. You just need to consciously and intentionally spend money on your priorities.
Splurging is not bad
When trying to optimize expenses, you do not need to punish yourself. You don’t need to feel ashamed of splurging on your hard-earned money once in a while. Additionally, buying quality goods often makes better sense than buying cheap alternatives. Just remember not to go overboard with it.
Now, consider using this psychological hack: if you really want something, maybe even think you need it, wait for 2 weeks and revisit your decision then. Try running this experiment on yourselves and share the results below in the comments section!
Invest more
When you start optimizing expenses, your savings will increase, giving an additional boost to your investments. There is gold in such habits. Escape the rat race by setting yourself up with an income that lets you enjoy your life, doing the things you really want.
As for investing, it can actually feel like the king of all jobs. Through investing, you create a form of passive income that can support you and your expenses throughout your life.
Focus on putting your money in reliable investments for the long run in order to act as a source of income when you retire and want to sustain your lifestyle comfortably without having to sacrifice finer things in life you have become used to. When your investments start reaping benefits, your hard work will have borne fruit. The flow of money will not and should not stop, even in your golden years.
Alternatively, investing a chunk of money in insurance can create a cushion to fall back on in case you need it in a crisis, not to mention the plethora of benefits that health and term-life insurance give.
Another trick I’ve observed among my peers involves investing in stocks that yield dividends, If you manage to accumulate a decent amount of wealth (which you will), you might very well benefit from switching to real estate investments!
Having said that, I firmly believe that this phenomenon called the rat race is an internal mindset. Once you maneuver around its toxicity and the accompanying mob mentality, you can truly find and have a luxurious life!
Don’t stress if you don’t feel like you’re getting ahead, you feel like you have failed, or you even feel broken. Just keep going. Pick up the piece of your life, learn faster, and achieve contentment.
