Escape The Rat Race

Valentino Cities, Escape, London 2 Comments

Creating a Lifestyle Business. More free time for dates, pursuits, holidays, friends and family. Financial Security.

For those who have the entrepreneur mindset.

Most of us start off with a regular job, earning a salary. There is another way, a way that will give you more free time with family and friends. More money for holidays, and to deliver for you and for those in your life (gf, children or even elderly parents etc). Read on to find out more… Only if you have the motivation and mindset though.

Books

If you only have time to read only three books, you may as well read the best. Essential reading:

Rich dad poor dad
The Lean Startup
Four Hour Work Week

I won’t duplicate the info other than to say the four ways to make money Kiyosaki covers: Employed, Self-Employed, Stockmarket trading, or Business and Asset owner.

A UK adult needs an equiv pension value of 500 – 1M GBP. Could be in a fund, or in property assets. (Less if retiring to Thailand or Buenos Aries)

For most escapees, Self-Employment is seen as the outcome. That does trim the management, and therefore may boost your earned hourly rate, but you’re still “working”, possibly even more than the 37 hrs per week you used to! IT contractors, locums and supply teachers follow this self-employed model.

The later two on that list are easiest, and what Richard Branson does. The final one would be a low maintenance lifestyle business. eg. 10 hrs per week. Replacing your salary (eg 3000 GBP gross per month). eg a property business (renting flats to highly paid reliable tenants – who are stuck in the rat race!). Income that flows in with minimal effort is called Passive Income.

Why accrue money?

I collect money now, because I want free time (now). I won’t want to go skiing for a season when I’m 70. I won’t physically be able to learn to windsurf when I’m old.

Money is a life time pension of semi-retirement fun

A UK adult needs an equiv pension value of 500 – 1M GBP. Could be in a fund, or in property assets. (Less if retiring to Thailand or Buenos Aries)

When you retire at 60, you gradually spend the money. What is left your kids inherit.

If you earn more, could give to kids early, so they can buy income producing assets themselves. Creating a generation of wealth.

Using Finance (aka leverage)

Through leverage you can achieve more. People may say “live in a positive bank balance”. But what if you could grow 3x faster with a 2% loan from a bank? Making £100k per year profit instead of £25k (minimal extra time required)

Easy ways to make extra cash.
Buy a flat. Sublet rooms. Covers your Mortgage. Ker-ching.

Write an information book on Amazon store. How To Make Thousands Doing What You Love. How To Be A Pilot. How To Buy Property In France. How To Pass The Theory Test.
It’s possible to write one book per month.

A flat with lodgers example

You need to carefully save up a deposit from regular job to do this strategy.

Buy two bed flat with separate lounge. In Zone 1 or 2 London. That becomes your large bedroom. Based on today’s values, mortgage payment 1,300 pcm. Repayment mortgage.
Two furnished rooms rented for 700 each PCM – your mortgage is covered. You’re around 15k per year better off (assuming some void periods). Easiest money anyone can make.

Find your own strategy, something that you are passionate about, something that works for you.

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Comments 2

  1. hmm the problem I have with all this make passive income stuff is that its easy to make small potatoes through ebay business or writing a self published book (its v hard to get publishers to take something on these days). making enough to live today as well as saving just like this is incredibly difficult Imo. You have to save not to have fun in the future but just to pay the bills … that’s what ppl forget, the thing about the baby boomer generation (our parents) is that they benefited from rising asset prices, stocks and mainly property & have large nest eggs so can afford luxury holidays and so on … I don’t think this rise in asset prices will continue in the West.

    I have traded stocks professionally for myself and I can tell you this is the HARDEST way to make money. Simply because its so competitive, wherever there is competition profits erode. The smartest and more industrious ppl out there are watching the markets 24/7 which makes very hard to beat them. In addition you have the financial services industry trying to diddle you in everything you do.

    Subletting a flat or house isn’t a bad idea. Only downside is you lose privacy and have to put up with ppl who could cause you issues. I used to sublet to a Chinese student and I had Chinese broth odours wafting around the house at all hours… 🙁

    1. Post
      Author

      Good points mate.

      Always better to have own logistics (place, with lounge/dining and separate bathroom), sharing with lodgers is a little DLV, but not impossible, as you own the place, so you’re the alpha in the household.

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