The Rat Race Cycle

Are you busy getting rich or are you just busy?

When we were young, we were repeatedly told to study hard to earn good grades, so that we can find a good paying job and earn income. And then the vicious cycle begins.

Can you see yourself in this financial struggle? You work more than 8 hours a day to get paid so you can pay your bills and buy things you think you need but end up broke with no savings even before the next pay date so you use your credit card or loan from a friend to pay the excess then work again. It's seems to be endless! Now you are trapped in the Rat Race Cycle. 

Most of us are in this situation right now, same as our parents and even grandparents. But what exactly is this Rat Race Cycle? Wikipedia defines Rat Race as an endless, self-defeating or pointless pursuit. Can you picture out a lab rat trying to escape while running around a wheel? That's exactly the same thing for you in terms of finances, you keep on running - you work very hard for money; but still end up with nothing - no investments, no retirement fund, and no savings.

Here are some common reasons why we are trapped in this vicious cycle.

1. Pamana/Inheritence 

We got this mindset from our parents, our parents' parents and so on. We were told to study hard and work hard to have a good paying job, we have that "Employee Mindset" implanted in our brain as long as we have a job we will be fine. 

2. Instant Gratification

Almost everything nowadays are instant - we have instant foods we can cook in just a minute, instant messaging where you can send and receive messages in seconds, and even instant relationship no more traditional courting. And because we are now living in a fast changing world; we like to have what we want right now, not later but now because we don't want to wait.

3. High Responsibility

Juggling with a lot of responsibilities from utility bills, kid's education, parents or wife's allowances, house rental, insurances, groceries and many more, you can't seem to think of other options but to work and work more just to keep up with the growing expenses.

4. Loving the Feeling

We all want to be rich, who wouldn't? You just can't help buying the latest gadgets and shopping for branded bags especially when it's on sale because you love the feeling of having luxurious items and how it feels like to be rich and being envied by many.

5. Comfort Zone

Many people are resistant to change, they just want to stay where they are comfortable even if it's not doing them any good. They are comfortable with their jobs because that's the only thing they know they are good at. 

6. Lack of Financial Education

Whenever the topic about financial education is discussed, most of us shrug it off and change the topic to more interesting stuffs like showbiz or basketball games. Most people think the learning the concept is only applicable to the businessmen or rich people, when in fact, we all need it especially those who want to be rich.

7. Lack of Action

No matter how many books you have read and seminars you have attended about money matters, it won't work unless you take action. Bo Sanchez, one of our mentor, had mentioned that the block that is hindering you to achieve your goals in life is "Education without Execution".

There's actually nothing wrong with working, buying things that you want, or treating yourself and your family with a grand vacation, as long as you are living within your means. You have to learn how to control your spending habit and plan out your saving habit. You need to properly manage your income so that you can control your money before money controls you. 

To learn more about money habits, click on the link below to answer a free survey to know your current financial situation.

http://bit.ly/1oqJcOw