Decided that you have had enough of the 9 to 5 "Rat Race", do you want to become your own boss and jump off the treadmill of life? If you are fed up of wishing your life away working for your weekends, counting down days to your next holiday, basically working to be retired the I am sure you will enjoy my 3 simple steps to becoming your own boss. I also recommend personal development to build your individual strength. ~
Step 1:
Make a commitment to yourself and confirm your personal "Whys" for wanting to escape the 9 to 5 world of working for someone else. Why do you feel this way? What gave you this desire? On a scale of 1-10 how important is this change to you?
Write it out, journalize your reasoning behind this decision. You will find by writing down how you feel your commitment to yourself will become stronger. This way you can also go back through your journal when ever you need some motivation. Once you are clear on your personal "Whys" start to investigate what business opportunities are available to you, what fits your criteria? As we approach 2010 personal development home based business opportunities are growing stronger in force and many people are seeing a huge amount of success in this area. From personal experience I feel the mix of personal development and owning your own business is also a great way to keep your motivation high and the positive vibes flowing.
Step 2:
Avoid procrastination. Start today! Don't delay! Go for it and trust your vibes, what is your heart telling you? Sometimes our head can take over when it comes to life changing decisions, from my own experience I know that mine did when I first started out on my new path in life with my personal development home business. I was grateful to have chose an opportunity which was so dear to my heart which also gave me personal strength, motivation and an amazing community of like minded people walking the journey together. I too had the added benefit of a very comprehensive training and support schedule to ensure I had everything I needed to become a success - this point is key!
Now I said go for it and trust your vibes but please do make sure that your chosen opportunity feels "right" for you. Consider my points above with regards to support and training but also be open to synchronicities which are now happening in your life, do you find yourself coming across the same opportunity again and again? Do things keep popping into your daily routine which take you back to the opportunity you are looking into? This can also be a sign that you are on the right track.
Step 3:
Start small, take baby steps forward - trust me you will feel better once you have a "light at the end of the tunnel". Your 9 to 5 job will seem much more manageable when you have your own venture on the side. You can then work towards covering your monthly earning's and outgoings needed through your part time home business prior to escaping the 9 to 5 job. This way you also have the faith in yourself and know that you can make your home business opportunity work for you. You may have to take a step outside your comfort zone but this will be worthwhile when you are able to make a huge leap forward in life.
Take a moment to imagine how happy you will feel once you have quit the 9 to 5 "Rat Race" once you are free of the world of working for someone else. When you can be your own boss! When this feeling kicks in you will be well on your way to total personal and financial freedom. When you are living YOUR dream and not someone else's, life gets a whole lot better. Trust me, its true!
Liz Green
CEO and Founder of Live Your Dream Mentoring
http://www.liveyourdreammentoring.com
Article Source: http://EzineArticles.com/?expert=Liz_Green
Showing posts with label how to escape the rat race. Show all posts
Showing posts with label how to escape the rat race. Show all posts
Monday, 18 January 2010
Sunday, 17 January 2010
Get Out of Debt - Strategies For Increasing Cash Flow and Reducing Debt
The challenge of getting out of debt can be even more daunting during recessionary times when it is difficult to increase your income. But a combination of creating some new revenue streams for yourself and your family, and cutting expenses, may do the trick to help you get started on the road to get out of debt. Below are several suggestions that can get your brainstorming on how you can increase your cash flow and reduce your debt.
Lease your home and move in with friends/relatives and share expenses. This assumes you live in a neighborhood where there are potential renters, and you have friends or relatives who are keen on weathering the recession by reducing expenses. With all the properties sitting vacant these days, finding renters is not always easy. However, this strategy has the advantage of allowing you to live with people you know and hopefully can trust.
Start a part-time business doing home services in your neighborhood. Services you might consider offering would include: pet sitting for people who travel frequently, running errands for the elderly, or watching neighbors' homes while they are on vacation. This type of venture has a lot of flexibility; you can decide how many hours to devote to the business, and the clients are close by so there is minimal travel time.
Rely on public transportation more. This can help you lower your auto expenses--gas, repairs, tire wear, and even insurance if your cost is based on the number of miles you drive. Your vehicle will have a longer life and thus you will not need to replace it as soon. If this seems too much of a hassle, you could try using public transportation just a few days a week. It will still have a positive financial impact.
Reduce non-essential services you are paying for, such as premium cable. Maybe you pay $20 per month for movie channels. Many people don't know that public libraries have movies you can sign out for free, including the latest new releases.
Lower utility usage. Your utility provider can show you lots of strategies to lower your heating and cooling costs. All of us waste electricity to some extent. Most of us can reduce cell phone costs by changing plans or making more calls from the land lines at home.
Substitute lower cost entertainment for higher cost. Maybe you go to baseball, football or basketball games. Add up the total cost of these experiences: tickets, travel, food, beverages, souvenirs-and you will see a day at the ballpark can be expensive. Other forms of entertainment, movies, museum visits, and cultural fairs can provide fun new experiences for your family with less impact on your budget.
Learn how to cook and save money on eating out. It can be great fun to discover you have previously unseen culinary talents, and this applies to both men and women. Online resources such as http://www.foodnetwork.com/ have thousands of recipes with step-by-step instructions that even the most inexperienced chef can master.
More tips and hope to get out of debt Brian Hill is the author of several nonfiction books, the founder of Profit Dynamics Inc., a management consulting company focusing on business planning and venture capital, and a screenwriter. Get your free credit report and credit scores at Debt Management
Lease your home and move in with friends/relatives and share expenses. This assumes you live in a neighborhood where there are potential renters, and you have friends or relatives who are keen on weathering the recession by reducing expenses. With all the properties sitting vacant these days, finding renters is not always easy. However, this strategy has the advantage of allowing you to live with people you know and hopefully can trust.
Start a part-time business doing home services in your neighborhood. Services you might consider offering would include: pet sitting for people who travel frequently, running errands for the elderly, or watching neighbors' homes while they are on vacation. This type of venture has a lot of flexibility; you can decide how many hours to devote to the business, and the clients are close by so there is minimal travel time.
Rely on public transportation more. This can help you lower your auto expenses--gas, repairs, tire wear, and even insurance if your cost is based on the number of miles you drive. Your vehicle will have a longer life and thus you will not need to replace it as soon. If this seems too much of a hassle, you could try using public transportation just a few days a week. It will still have a positive financial impact.
Reduce non-essential services you are paying for, such as premium cable. Maybe you pay $20 per month for movie channels. Many people don't know that public libraries have movies you can sign out for free, including the latest new releases.
Lower utility usage. Your utility provider can show you lots of strategies to lower your heating and cooling costs. All of us waste electricity to some extent. Most of us can reduce cell phone costs by changing plans or making more calls from the land lines at home.
Substitute lower cost entertainment for higher cost. Maybe you go to baseball, football or basketball games. Add up the total cost of these experiences: tickets, travel, food, beverages, souvenirs-and you will see a day at the ballpark can be expensive. Other forms of entertainment, movies, museum visits, and cultural fairs can provide fun new experiences for your family with less impact on your budget.
Learn how to cook and save money on eating out. It can be great fun to discover you have previously unseen culinary talents, and this applies to both men and women. Online resources such as http://www.foodnetwork.com/ have thousands of recipes with step-by-step instructions that even the most inexperienced chef can master.
More tips and hope to get out of debt Brian Hill is the author of several nonfiction books, the founder of Profit Dynamics Inc., a management consulting company focusing on business planning and venture capital, and a screenwriter. Get your free credit report and credit scores at Debt Management
Wednesday, 6 January 2010
How to Escape the Rat Race – Step 3
Invest!! Buy or create assets.
If you have completed steps 1 and 2 you are on your way to financial freedom. By completing step 1 you are now living below you means. Every month you are bringing in more money than your monthly bills. Completing step 2 has now taken the shackles off you by removing all non-mortgage debt. You should now be living well below your means, allowing you to put by a tidy sum each month.
Before you begin to invest, I suggest you first save enough money and put it in an ISA that will pay your bills for at least 3 months. That way, if the worst comes and you lose your job, or you have a huge unexpected bill come through, you have a financial cushion.
Assuming you have this cushion you are now ready for the most exciting step of escaping the rat race and becoming financially free (remember, being financially free is when your passive income exceeds your monthly expenses).
It’s all about assets! Assets are things that put money into your pocket automatically. Whether it is dividends from shares you own, rent from a house you let, interest you get from savings, it is something that puts money into your pocket every month and you don’t have to work for it.
Most people stay poor (well, don’t become financially free) because they never buy assets, they only buy liabilities. Liabilities are things that take money from your pocket, e.g. cars, boats, holidays, etc.
I’m not saying you should never buy liabilities – of course, most people need a car, and everyone should try to buy a house, although that is a liability. A house takes money out of your pocket, but you need to live somewhere and rent can take the same amount out of your pocket, and wouldn’t you rather pay for your own house than someone else’s?
When you can though, you should buy assets before liabilities – use your money to invest in something that will ultimately pay for your liability. For example, I want to buy a new boat. I have saved a lot of money for this boat – £20,000 in fact! Now, I could buy the boat outright now, since it costs £20,000. However, I do some research and find a good investment that will pay 10% return per year. So I buy this investment (asset) and from it I earn £2000 a year, or £166 a month.
I then manage to get a loan for £20,000 that will buy my boat for me, and cost me £150 per month to pay it back. I have therefore bought my boat and but still have a positive cash flow. What’s more, when my boat loan is paid off I’ll be left with an asset paying me £2000 a year!
So, as a summary, now you are living below your means and have paid off all your debts, you now are in a position to buy and create assets. More on this in the coming posts…
If you have completed steps 1 and 2 you are on your way to financial freedom. By completing step 1 you are now living below you means. Every month you are bringing in more money than your monthly bills. Completing step 2 has now taken the shackles off you by removing all non-mortgage debt. You should now be living well below your means, allowing you to put by a tidy sum each month.
Before you begin to invest, I suggest you first save enough money and put it in an ISA that will pay your bills for at least 3 months. That way, if the worst comes and you lose your job, or you have a huge unexpected bill come through, you have a financial cushion.
Assuming you have this cushion you are now ready for the most exciting step of escaping the rat race and becoming financially free (remember, being financially free is when your passive income exceeds your monthly expenses).
It’s all about assets! Assets are things that put money into your pocket automatically. Whether it is dividends from shares you own, rent from a house you let, interest you get from savings, it is something that puts money into your pocket every month and you don’t have to work for it.
Most people stay poor (well, don’t become financially free) because they never buy assets, they only buy liabilities. Liabilities are things that take money from your pocket, e.g. cars, boats, holidays, etc.
I’m not saying you should never buy liabilities – of course, most people need a car, and everyone should try to buy a house, although that is a liability. A house takes money out of your pocket, but you need to live somewhere and rent can take the same amount out of your pocket, and wouldn’t you rather pay for your own house than someone else’s?
When you can though, you should buy assets before liabilities – use your money to invest in something that will ultimately pay for your liability. For example, I want to buy a new boat. I have saved a lot of money for this boat – £20,000 in fact! Now, I could buy the boat outright now, since it costs £20,000. However, I do some research and find a good investment that will pay 10% return per year. So I buy this investment (asset) and from it I earn £2000 a year, or £166 a month.
I then manage to get a loan for £20,000 that will buy my boat for me, and cost me £150 per month to pay it back. I have therefore bought my boat and but still have a positive cash flow. What’s more, when my boat loan is paid off I’ll be left with an asset paying me £2000 a year!
So, as a summary, now you are living below your means and have paid off all your debts, you now are in a position to buy and create assets. More on this in the coming posts…
Monday, 4 January 2010
How to Escape the Rat Race - Step 1
Take control of your money!
Simply put, live below your means. If you find yourself spending more every month than the amount going into your bank account then you are living above your means, and ultimately this cannot continue. Take a look at the banks in 2008 – they lent to people who could not afford to repay loans. They were living above their means and it all came crashing down, leaving the world in recession.
If you are unsure of where your money goes, keep a financial diary for a month or two. Write down everything you spend your money on, whether it’s a £200 bill or a 60p can of coke. At the end of the month add it all up. Is the amount greater or less than the amount you earned? If it’s less, good – you are already living within your means. If it’s more, don’t worry too much, you just need to take the reigns of your finances and get back control!
Budgeting is key to controlling your finances. List everything you MUST spend a month to get by. These are bills that you have to pay, like:
Mortgage / rent
Council tax
Clothes
Heating / electricity / water
Petrol
Insurance
Phone bills
TV licence
Car loan
etc
Unfortunately these are the things that we can’t just stop paying, BUT, if you must pay them you might as well make sure you are getting the best value, right? Next time your car insurance comes up for renewal ABSOLUTELY DO NOT just accept the quote that your current provider gives you. Moneysupermarket.com is your friend! Go online and make sure you get the best deal. The same goes for water, electricity, gas, mobile phone contracts, mortgages, etc. Always strive to get the best value for your money.
Now list all the things that you buy every month that you don’t need and the frequency of these purchases. This is pretty much everything else, like:
DVD’s
CD’s
Cinema
Meal out
Drinks down the pub
Day’s out
Costa coffee
Look at each one and ask yourself if you really need – if you are living below your means anyway then you may not want to cut back on anything on this list, which is fine. But if you are living above your mean, then you will need to look at this list and maybe rent a DVD out instead of going to the cinema, or cook a nice meal instead of eating out. You don’t have to make sweeping changes to your lifestyle, just ensure you are living well within your means.
Say you have monthly expenses of £1500. Just saving 10% is equal to £150 a month – this is almost £2000 a year!
Once you start living within your means you are on your way to escaping the rat race!!! Stay tuned for step 2 – destroying the debt!!
Simply put, live below your means. If you find yourself spending more every month than the amount going into your bank account then you are living above your means, and ultimately this cannot continue. Take a look at the banks in 2008 – they lent to people who could not afford to repay loans. They were living above their means and it all came crashing down, leaving the world in recession.
If you are unsure of where your money goes, keep a financial diary for a month or two. Write down everything you spend your money on, whether it’s a £200 bill or a 60p can of coke. At the end of the month add it all up. Is the amount greater or less than the amount you earned? If it’s less, good – you are already living within your means. If it’s more, don’t worry too much, you just need to take the reigns of your finances and get back control!
Budgeting is key to controlling your finances. List everything you MUST spend a month to get by. These are bills that you have to pay, like:
Mortgage / rent
Council tax
Clothes
Heating / electricity / water
Petrol
Insurance
Phone bills
TV licence
Car loan
etc
Unfortunately these are the things that we can’t just stop paying, BUT, if you must pay them you might as well make sure you are getting the best value, right? Next time your car insurance comes up for renewal ABSOLUTELY DO NOT just accept the quote that your current provider gives you. Moneysupermarket.com is your friend! Go online and make sure you get the best deal. The same goes for water, electricity, gas, mobile phone contracts, mortgages, etc. Always strive to get the best value for your money.
Now list all the things that you buy every month that you don’t need and the frequency of these purchases. This is pretty much everything else, like:
DVD’s
CD’s
Cinema
Meal out
Drinks down the pub
Day’s out
Costa coffee
Look at each one and ask yourself if you really need – if you are living below your means anyway then you may not want to cut back on anything on this list, which is fine. But if you are living above your mean, then you will need to look at this list and maybe rent a DVD out instead of going to the cinema, or cook a nice meal instead of eating out. You don’t have to make sweeping changes to your lifestyle, just ensure you are living well within your means.
Say you have monthly expenses of £1500. Just saving 10% is equal to £150 a month – this is almost £2000 a year!
Once you start living within your means you are on your way to escaping the rat race!!! Stay tuned for step 2 – destroying the debt!!
Sunday, 3 January 2010
How to Escape the Rat Race
If you are familiar with the book Rich Dad, Poor Dad then you should already have a pretty good understanding of how to get out the rat race. If you are not, then keep reading and I’ll try to give you my understanding of what the rat race is and how to get out of it!
Firstly, what is the rat race?
The rat race is a way of describing the tedious process we as humans go through 5 days a week to live. Monday to Friday we get up early, commute to work to make someone else rich, and commute home. By the time we get home the kids could be in bed and you don’t see much of your wife. You work hard but never seem to get ahead – there are too many bills and loan repayments to make!
This is the rat race - running in a circle never getting ahead. This blog will try to give you the knowledge and tools to escape the rat race once and for all. However, it’s not going to give you get rich quick ideas, because these are pretty much non-existent (except perhaps the lottery!). What it will do is try to change your way of thinking and educate you financially.
When do you know you are out the rat race?
Well, according to Robert Kiyosaki, the author of Rich Dad, Poor Dad you are out of the rat race when your monthly passive income exceeds your monthly expenses. That simple. Once you hit this mark, you’ve done it! You could, if you wanted to, sit on your ass and do no work ever again! You could, in other words, retire.
So how can you get there?
I will try to show you that there is really only one way of getting out the rat race. That is the following:
LIVE BELOW YOUR MEANS and BUY ASSETS with what’s left.
And what’s an asset?
Well, those who have read Rich Dad, Poor Dad can smugly answer. An asset is something that puts money into your pocket without any intervention from you. Interest from money in a bank. Dividends from shares. The rent from a house you let(assuming of course the rent covers the mortgage!).
Is the house you live in an asset? Nooooo!!! Does your house or car put money into your pocket? Absolutely not. They take money out of your pocket, and a lot of it at that!
So, live below your means and buy assets. Seems pretty obvious huh? Well, too many people unfortunately live where their paycheque meets (or even worse doesn’t meet) their expenses exactly, leaving no money to invest.
More to following in the coming blogs!!!
Firstly, what is the rat race?
The rat race is a way of describing the tedious process we as humans go through 5 days a week to live. Monday to Friday we get up early, commute to work to make someone else rich, and commute home. By the time we get home the kids could be in bed and you don’t see much of your wife. You work hard but never seem to get ahead – there are too many bills and loan repayments to make!
This is the rat race - running in a circle never getting ahead. This blog will try to give you the knowledge and tools to escape the rat race once and for all. However, it’s not going to give you get rich quick ideas, because these are pretty much non-existent (except perhaps the lottery!). What it will do is try to change your way of thinking and educate you financially.
When do you know you are out the rat race?
Well, according to Robert Kiyosaki, the author of Rich Dad, Poor Dad you are out of the rat race when your monthly passive income exceeds your monthly expenses. That simple. Once you hit this mark, you’ve done it! You could, if you wanted to, sit on your ass and do no work ever again! You could, in other words, retire.
So how can you get there?
I will try to show you that there is really only one way of getting out the rat race. That is the following:
LIVE BELOW YOUR MEANS and BUY ASSETS with what’s left.
And what’s an asset?
Well, those who have read Rich Dad, Poor Dad can smugly answer. An asset is something that puts money into your pocket without any intervention from you. Interest from money in a bank. Dividends from shares. The rent from a house you let(assuming of course the rent covers the mortgage!).
Is the house you live in an asset? Nooooo!!! Does your house or car put money into your pocket? Absolutely not. They take money out of your pocket, and a lot of it at that!
So, live below your means and buy assets. Seems pretty obvious huh? Well, too many people unfortunately live where their paycheque meets (or even worse doesn’t meet) their expenses exactly, leaving no money to invest.
More to following in the coming blogs!!!
Welcome to the Rat Race!
You’re born. A few years pass and you go to primary school. Why? To get a decent foundation of knowledge that will support you throughout life. You work hard and do your homework, because that’s what your parents told you to do.
After a few years at primary school you can read and write and do basic mathematics. You hit puberty and go to secondary school. Why? To get good grades! But why’s that important? Well, so you can get into a great university! Oh, OK.
You continue to work hard, do your homework and revise for the all important end of school exams! Since you have worked hard you do well. You get into you first choice university. Great!
Hmmm… This university lark is expensive, I’m not sure how I can afford it.
No worries, you can get a student loan that will cover your tuition fees, pay your rent and still give you money to piss up the wall!
But why am I at university anyway? So you can study for the career! Then you can get a job, buy a house, start a family and live the life that society says you should lead!
Ah, OK. So off you go to uni. You study less hard but make up for it by playing hard. You lose your virginity (if you hadn’t already at school (naughty!)), drink way more than your liver can handle, miss lectures and have an infection scare. Still, you scrape through with a reasonable grade. Phew. Oh, by this time you are between £10,000-20,000 in debt.
Oh well, forget about that for now, I can pay it off when I’ve got a job, and now I have the tools to go out and make some money! Cool! So off you go and get a job. You earn more money now than you ever have, so you get a student loan for a new car. Another £7,000-£10,000 debt.
Still, you don’t mind too much because you work harder and get a promotion. And you meet someone at work who you rather like. You furnish her with gifts and meals to impress her and WAHOO!! Before you know it, it’s worked and you have a fiancé.
A wedding is really expensive stuff! Better work harder to get another promotion. You get one, but whenever you have more money to spend you seem to have more bills and expenses. Especially since you are now paying a mortgage for the new house you’ve just bought.
You work harder, doing longer hours and having less time for you. This didn’t stop you getting the wife pregnant though! SHIT!!!
Baby clothes, a pram, decorate the spare bedroom, new car seat! The list is endless.
You work even harder than before, getting a new job with more money but a longer commute. Baby pops out but you don’t see it much, you’re always in the office.
Then you do something really silly!! You get her pregnant again!!! House is now too small, you sell, and buy a bigger more expensive house. The mortgage is almost crippling!! How can I be in this situation?! I studied hard at uni, I got good grades like I was told I needed, I have a good job, yet I’m still working my ass off, making other people richer and I never see my wife and kids!!! WHAT DID I DO WRONG?!?
Nothing. You didn’t do anything wrong. You just weren’t trained in how money works.
Stay tuned for tips on how to escape the rat race!
After a few years at primary school you can read and write and do basic mathematics. You hit puberty and go to secondary school. Why? To get good grades! But why’s that important? Well, so you can get into a great university! Oh, OK.
You continue to work hard, do your homework and revise for the all important end of school exams! Since you have worked hard you do well. You get into you first choice university. Great!
Hmmm… This university lark is expensive, I’m not sure how I can afford it.
No worries, you can get a student loan that will cover your tuition fees, pay your rent and still give you money to piss up the wall!
But why am I at university anyway? So you can study for the career! Then you can get a job, buy a house, start a family and live the life that society says you should lead!
Ah, OK. So off you go to uni. You study less hard but make up for it by playing hard. You lose your virginity (if you hadn’t already at school (naughty!)), drink way more than your liver can handle, miss lectures and have an infection scare. Still, you scrape through with a reasonable grade. Phew. Oh, by this time you are between £10,000-20,000 in debt.
Oh well, forget about that for now, I can pay it off when I’ve got a job, and now I have the tools to go out and make some money! Cool! So off you go and get a job. You earn more money now than you ever have, so you get a student loan for a new car. Another £7,000-£10,000 debt.
Still, you don’t mind too much because you work harder and get a promotion. And you meet someone at work who you rather like. You furnish her with gifts and meals to impress her and WAHOO!! Before you know it, it’s worked and you have a fiancé.
A wedding is really expensive stuff! Better work harder to get another promotion. You get one, but whenever you have more money to spend you seem to have more bills and expenses. Especially since you are now paying a mortgage for the new house you’ve just bought.
You work harder, doing longer hours and having less time for you. This didn’t stop you getting the wife pregnant though! SHIT!!!
Baby clothes, a pram, decorate the spare bedroom, new car seat! The list is endless.
You work even harder than before, getting a new job with more money but a longer commute. Baby pops out but you don’t see it much, you’re always in the office.
Then you do something really silly!! You get her pregnant again!!! House is now too small, you sell, and buy a bigger more expensive house. The mortgage is almost crippling!! How can I be in this situation?! I studied hard at uni, I got good grades like I was told I needed, I have a good job, yet I’m still working my ass off, making other people richer and I never see my wife and kids!!! WHAT DID I DO WRONG?!?
Nothing. You didn’t do anything wrong. You just weren’t trained in how money works.
Stay tuned for tips on how to escape the rat race!
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