subject: Want Out Of The Rat Race? [print this page] Want Out of the Rat Race? Want Out of the Rat Race?
The rat race has become part of the American dream. The problem is that most people do not even realize when they have joined in on the Rat Race.
It is what you see all around you.
Most people that you see living in large homes, driving expensive cars are part of the Rat Race. They do not own these things they simply are renting them from the banks. Large expensive homes and expensive cars are nothing more than liabilities but often confused as assets. Nothing you own is an asset unless it is making you money.
acquiring true assets is the first step in building wealth that can be passed on from generation to generation. Chances are your parents are not leaving you any substantial wealth because they to were caught up in the rat race. They do not have any real money to leave because their money went to paying for their liabilities. They were just passing on the advice that their parents had given them. And so the story continues. What you want to do is be the one who broke this chain in your family history. Be the one who started the legacy of assets being passed down from generation to generation. Your only chance to create wealth is to acquire assets but there is no income left to do that. So how do you change this?
Once you get into the rat race it is very hard to get out. Getting out of the rat race can be tricky. But it can be done. First you must eliminate your liabilities or at the very least reduce them. You are attempting to free up some of your income to use towards assets. Look for ways to reduce your monthly expenses. If you have not already bought a home, wait and acquire a few assets first. The idea is to create a lifestyle that does not take all of your income. You want to have something left over every month to invest so that your money can go to work for you. If you keep spending all of it every month it will never work for you unless you are spending it on income producing assets. Assets make you money while you are sleeping, playing or working. They grow in value or they produce income. Liabilities either take money to purchase and immediately loose their value or they require a monthly payment. They suck the life out of your income. Assets help to build a legacy. Liabilities can put you in the poor house.
