The 8 to 5 Rat Race - Pros And Cons
by Samson Itoje
Paid employment is often referred to as "the 8 to 5 rat race" in many circles. And this retirement planning web site also uses the same, somewhat derogatory, term to refer to paid employment.
So, you may wonder, "Why is paid employment called a rat race? And if it is truly a rat race, why then is this article talking about its pros or benefits?"
Let's start with the first question: "Why is paid employment called a rat race?"
Getting a paid job where one works 8am to 5pm for 5 days per week is often referred to as a rat race because the purpose of securing that job is usually to achieve financial freedom but financial freedom through a paid job have proved to be elusive for millions of employees worldwide.
Consequently, millions of employees worldwide feel like they are like rats running in a maze (round and round the same spot) without actually making much progress.
Millions of employees worldwide come to a sudden realisation that they have accomplished very little after working for 35 to 40years. And any initial dreams they had of achieving financial freedom through paid employment, suddenly evaporates into thin air as they find themselves broke after retirement.
Yes, it's a rat race out there!
Benefits of Having 8 to 5 Day Job
Having a paid 8am to 5pm day job have some unique benefits, despite the fact that we refer to it as a rat race.
The benefits include:1. Consistency of income:
If you work in a prosperous company, you can be assured of getting your salary every month, on time and in full.2. Stability of Plans:
With a consistent salary you can plan your life around that salary and execute all of the things your salary can afford if you stick with your plans3. Consistent Savings:
Opportunity to consistently save a percentage of your monthly salary month after month4. Access To Bank Loans:
If you work for a credible organisation, you can access bank loans that your salary can pay for with ease.
Bottom line.The biggest benefit of having a day job working for a respected national or multinational company is access to capital for investment purposes.
Therefore, if you take our saving for retirement advice
, you could eventually use the resources offered by your day job to achieve financial freedom even after retirement.
Disadvantages of A Day Job - Expectation Versus Reality
The major disadvantage of having a day job is this: Paid employment gives many employees a false sense of security.
In fact, millions of employees are so comfortable with the consistent income they get from their day job that they forget that a time will come when they will be too old to be employed by any company.
This does not mean that these employees are satisfied with their pay.
On the contrary, more than 50 percent of employees want a change of employment because of poor remuneration and / or poor job satisfaction.
Eventually, many of these dissatisfied employees get opportunities to change from their current job to a better job with a higher pay. And they get all excited about the new job.
Unfortunately, many become dissatisfied with their new job within a couple of months (or years) because their expenses have risen to match their new salary.
Off they go again in search of a better job with better remuneration package.
At the end of 35 to 40years of being in the 8-5 rat race, millions of employees worldwide suddenly discover that it is time for retirement and that they spent their entire career chasing the next "great job with better remuneration package" without actually creating an income generating system that they own.
Since they're suddenly unemployable and they don't own an income generating system outside of their paid job, a bleak future stares them right in the face.
Can you see why this is a rat race?
The rat race can blind employees to everything else outside where they work!
Think Different. Act Different. Escape The Rat Race!
Thousands of employees worldwide have successfully escaped the 8-5 rat race and retired as financially independent founders and CEOs of their own companies.
How did they do it?
>> By thinking differently and
>> Acting differently
How can you achieve the same feat?
Simply do 5 things:
1. Start saving for retirement early in your career
2. Invest your savings in investment opportunities that offer great returns on your investment; returns far greater than what a savings account will offer you.
3. Use your savings to access mortgage loans so you can invest in real estate
4. When investing in real estate, ensure you invest in cash generating properties
5. Be sure to establish a company that will pay you a monthly salary for the rest of your life
Remember . . . having a day job in a credible national or multinational company can greatly enhance your credit rating. And that enhance credit rating will give you access to more capital for investment purposes.
Invest and invest (again and again) so you can create multiple sources of income that will guarantee you financial freedom after retirement.
Yes, you can escape the 8-5 rat race. It depends on what you do with your money while in paid employment not necessarily the size of your salary.