I noticed many people have many different explanations on what it means to “Escape the Rat Race”. My definition is simply when one becomes financially independent and owns at least 95% of his/her own time. Why 95%? It has to do with responsibilities that come with managing your investments. Although I knew I could make my exit earlier around the age of 32 I decided to wait another 5 years before the exit for few key reasons. What were they?
- Create a passive income source that grows 3-5% year over year(YOY).
- Income must be able to maintain your current life style by a healthy margin.
- Net worth must increase YOY.
It is a very liberating feeling but I do feel I must remain disciplined so I do not make the wrong decisions that possibly can send me back into the race again. It has only been a year but looking back I can see the dramatic increase in the growth of my self-development. I feel like my appetite for knowledge has been liberated as well. I created a simple chart on what I feel has changed in my life.
What’s fascinating is to watch your net worth grow even after you have exited the rat race. Of course, I did plan for this but it does have a powerful effect on you to remain disciplined keeping track of your progress month after month. I believe having a visual record of your progression towards any goal has a profound and powerful effect on the human mind to help keep that focus when needed. I removed the dollar amounts because I am not comfortable sharing such private details yet. What are your thoughts? Exciting times!
