Many people don't realize
the benefit of investing early in life. Especially the young ones, who tend to
have fun while they are still young. It's understandable why do such boring things while
there are so many other fun activities in life besides investing. I myself
sometimes find that saving and investing can be really boring (I am a human
being and I want to have fun too). However, once you realize the power of compounding, you
might get another picture why there are many benefit to start investing early
in life. You see saving and investing is not a "get rich quick kind of
thing", and if there is someone who claim to be able to get you rich quickly
by investing, I hope you do your research diligently since there is probably high
risk involved. Saving and Investing to create wealth is a long time procedure,
but the sooner you start to put your money to work for you the more time your
investment would grow better.
The Rat Race is a term that is used to describe the
frustrating financial grind,
hard-to-break financial lifestyle that most people are stuck in. It
conjures the image of a “lab rat trying to escape while running around a maze
or in a wheel, expending a lot of effort, but ultimately achieving nothing.” It’s very much alike to people who
everyday work their butt off in a time-consuming nine to five job, for
five days a week just to be able to pay their high expenses: a heavy
mortgage/rent, bills, children, and liabilities. They have to wake up early in the morning when
the alarm goes off, commute to work in a traffic environment, do the work that
they probably dislike in their office cube, then commute back home in another hour of traffic, then repeat the same procedure the next day. The
problem with the rat race is that there's no finish line. The illusion that working at the same job will
be better bars off alternatives. They are trap in this vicious cycle believing
the more money they make will solve their problem. However, this is not
necessarily true. When income increases, they have a tendency to boost
their spending, which can quickly spiral into dangerous overspending habits. The
wheel just keeps spinning, and the longer they are caught in the cycle of consumption, the harder it becomes. Sadly
the cycle get worse as they get older if not prevented. So how do we stop this insanity and get out of the Rat Race?
