How to Escape the Rat Race?

Anurag Verma
Nov 6 · 5 min read

In my previous article, I covered what individuals should do just after graduating from college instead of going for traditional pattern of going for job.

But what about persons who didn’t take that step and now are stuck in the rat race. Couldn’t quit because bills are to be paid every month, EMIs are there, children education is there. They cannot just quit even if they want to.

Some persons might say that they can start a side hustle just like Daymond JohnShark Tank investor did. To make ends meet, John held a full-time job at Red Lobster, working on the FUBU business in between shifts.

But it is easier said than done. You spend a minimum of 10 hours on job and now add to that time spent on commuting which is easily 1 hour one way in almost all the cases. So 12 hours of the day are gone in a whiff. One has to get ready for going to office at least 1 hour is required for it. After such a long tiring day at least 8 hours of sleep are needed. So 21 hours are gone. Now 1 hour is spent on changing and eating dinner. 22 hours gone. If a person is married, one needs to and must spend time with children and wife, so 1 hour is required which is bare minimum. Even then family would say, you are not giving them enough time.1 hour is required for body also be it meditation, yoga, exercise, brisk walking, gym whatever mode a person may choose.

After all if you do not give the body enough time when you are healthy, you would get lots of spare time when you are sick.

24 hours are gone.

Now with weekends is the only time to recharge your body but that is also spent in rush hour because everyone has holiday on these weekends.

You negotiate traffic, reach your shopping mall, then spend time for getting parking, then go in a rush to every store, buy your grocery items and then stand in a line to get these items billed which easily take away half an hour of your time but you aren’t bothered because you have your mobile for your company. Check Whatsapp, Instagram, Facebook, You Tube and so on.

Then you feel hungry and then again stand in a line to first give your order then wait for your order. At the end of day you wonder was this day any better than your office day except the thing that you didn’t have to work but was it really vacation.

So where is the time to start anything new? But you don’t like your present job also. So how can you escape rat race.

Simple: Make your money work for you.

Let’s hear a story a person starts working in year 1500 AD and earns 5000 bucks everyday by working. Now in 2019 how much money you would have after working everyday for 519 years.

It is 5000*365*519= 947,175,000

It is 947 million bucks. What the hell? It is not even a billion.

Not even a billionaire even after working every day for 519 years and mind you 5000 is a decent sum to earn every day.

So what’s the lesson?

Lesson is you cannot make money by working.

Rich man makes money with his hands

Richer man has his employees make money for him.

Richest has his money make money.

No wonder, Warren Buffet is the third richest person in the world.

You are currently on first pedestal and want to progress but since time is not on your side or may I say you cannot make time for doing the second because of expenses or whatever. Only 3rd pedestal is open to you.

This one can do by having basic knowledge about investments or getting smarter by reading books, or reading my articles. No just kidding.

You would have to get at least 2 hours every week for distraction free work.

In the mean time you can read business news, follow some great bloggers out there, and follow like minded people on social media and so on during your off time in office where instead of gossiping about useless stuff like politics, games, TV which means basically things which are not in your control. Instead invest that time in yourself.

Let your money work for you and give it time to grow.

Now where would you invest that money? — Real estate, gold, equity, debt.

So, the answer is equity is your best vehicle for generating wealth. In list of top billionaire there is not one who became rich by investing in debt or gold. The rich are either the person who have equity or who are the business owners. Nobody else can break into that list.

Real estate is highly illiquid and demands a lot of investment so it becomes inapplicable to majority of individuals.

That leaves us with only equity where you can invest.

How to navigate this path?

There are two paths to follow direct equity or mutual funds.

Mutual Funds are a great investment vehicle for persons who either do not have time or interest in equities. For them, the best way is to invest in mutual fund and let the competent persons manage their money.

Equity Investment is only for those people who have interest and time to study.

They can have basic knowledge here and here.

Remember if you start your own business or profession, it takes time to establish it. Minimum 5 years to 10 years before you make your mark. Of course this time period is very less for exceptional individuals or those who have the right contacts or who have someone in politics or who can go corruption way to get their money.

But for all others a lot of time is required to establish. So this thing is better done when one is young as then one does not have many expenses on head.

With equity one gets the convenience of investing in a settled business — a brand name. These people work and you get the benefits just like an entrepreneur albeit on a much smaller scale.

Think of your equity investments as becoming part owner of company you are investing in rather than just treating as something to be sold off at minor gain.

Add to that if the company is a consistent dividend paying company, you would have the convenience of yearly inflows.

Zipupurpocket

Financial Independence

Anurag Verma

Written by

Interests in Stock Market, Reading books. DIY Investor. Posting Knowledge for my 2 daughters.

Zipupurpocket

Financial Independence

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