There are a lot of important things you could do to escape the rat race, but I have give you seven that come to the forefront of my mind. This should be a good starting point for the ambitious wealth builder.
Tip number one is: learn to invest. Get started reading the classic investment texts, a financial magazine, learn the terminology, and laws. Learn to analyze an investment. I would get started on this one, even if the economy seems bad. Create a model portfolio and watch the indicators, stocks, and etc. You will not start out as the best investor, so start learning.
Tip number two is: Live below your means. You have no alternative. If you are to retire, you need to save money for it. Even if you have a good pension, create another leg in your retirement stool. Delaying gratification will help you cut expenses. Wait for a better price on what you want to buy. Maybe you will change your mind altogether. Make it a mental game to buy good investments, rather than a frivolous purchase.
Tip number three is: Diversify your investments. Spread your money around some. You could still be somewhat concentrated in things you know about and are confident and comfortable with. It is very important not to put yourself into a high risk/low reward situation. Decide on a good asset allocation (a combination of various assets). Stay on top of your finances.
Tip number four is: Make a few big financial bets. Make some substantial financial bets on something you have a strong hunch will succeed. If you are right on a serious investment, it could be all you need to exit the rat race. Never make a bet you cannot afford to lose. Make sure you have done adequate research on your investments.
Tip number five is: Create a Mastermind. You need coaches and guides that are going where you are going. You need objective opinions and fresh perspectives. Masterminds have come in handy. That is why Andrew Carnegie advises us to start a mastermind in Think and Grow Rich.
Tip number six is: get into CANI (constant and never ending improvement). Use CANI to improve each area of your life, including your career, and investing. Applying the philosophy of CANI in your health, relationships, etc. will pay dividends as well.
CANI is easy, just admit you don’t know everything, and start making improvements. Improve a little every day. I encourage you to keep learning and growing even after you escape the rat race.
Tip number seven is to: move quick on things. When a task or project is dropped in your lap, get to work! Get going! Procrastination won’t help you escape the rat race. Video games, booze, and “power naps” won’t get you out of the rat race. Become the person who gets the job done. If you can’t get things done, you will spend more time in the rat race. Tackle tough projects without delay.
Today is the day to get going on your financial journey. Test some of these tips in your own life and see what happens.
see www.financialindependenceuniversity.com for more info & details.
Good post. and Inspiring too. Think and grow rich blends with this post very easily.
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