Tired of the rat race? It is time to Stop Dreaming of Quitting the Rat Race and do something about it. Sure those dreams are good for motivation but dwelling on what you want without taking steps to make it happen will just end up being a source of personal life-long frustration. I believe the biggest reason why people start thinking about quitting the rat race is having the real financial fear of spending their entire life living paycheck to paycheck. A lifetime of being stuck in a vicious cycle chasing their own ass. I say that because it’s the things we have done and do that gets us in this mess. When we finally get to the point where we are sick and tired of living like this we start to dream of what could be if only. It’s no secret, it is up to us to get ourselves out of this mess.

Case in Point.

A close family member who is around age 54 was talking about how he wanted to chuck it all and move to San Juan Island off of the Washington coast to a small house. He was just sick and tired of the rat race and never getting ahead. We could see in his eyes as he was talking that his dream of a slow life where they could whale-watch and fish while living on an island of outdoor recreation and small town life were totally sincere.

It was obvious that he has given this a lot of thought. Thought about his dream but what about making it happen? When I asked when he could retire and do it he said “Never. Well maybe when I am 70 and can get my highest Social Security”. I then said that was not much of a plan, what else are doing to make it happen? He said “It is all I can do to keep our heads above water now so I am not able to do anything else”.

There lies the problem that most of us face when it comes to taking steps to reach our financial goals and giving ourselves the option of quitting the rat race. He longs for quitting the rat race and his living paycheck to paycheck but he lives in a big beautiful house in an exclusive neighborhood. It comes with a fat mortgage and big utilities. I am not sure they are willing to sell the house to jump-start their plans yet. People happily get stuck on the dream but are unable to let go of what is holding them back.

Doing Something about Quitting the Rat Race

Time for a hard-core self-assessment of what it is we really want and what we are willing to commit to doing to achieve it. This is all about creating a plan that will cover increasing our earnings and dramatically cutting what we spend.

Income and Expenses –

Get real intimate with your cash flow, how much is coming in and where it is all going. Housing, utilities, grocery, debts, autos, insurance (health, life, auto, home), hobbies, kid’s activities, entertainment, vacations, etc. Everything will need to be looked at for potential cuts to find ways to pay off debt and save money. List all your assets. Are there assets that could be sold to pay off debt? You will have to commit to a new sustainable frugal living budget that challenges your frugality thresholds. Your carefully crafted budget where you don’t feel like you are living a totally deprived life .

Rat Race Escapee Lifestyle Income and Expenses-

You want more than living paycheck to paycheck and should have an idea of what your lifestyle will be if you could pull off quitting the rat race. Will you be able to work and earn income or is it all coming from savings/investments? If you plan to move is the new location less expensive than where you are now and will there be extra money from a sale of property before the move? You should have an idea of what your new life will cost so you will understand how much you may need in savings, investments and earnings. You also must know what you want in the way of lifestyle. Are you retiring early, downsizing your career, looking to start your own business, etc. You have to have a target to plan for.

Create Your Plan-

Decide what it is you want to accomplish and how much time it will take you to get there. This will be both a spending and saving plan because you have to do both to escape the rat race.

Track and Adapt –

Set measurable goals and track your progress. If things change or you get off track than adapt your goals to the new circumstances. Stay on plan with your final goals in sight.

Final Comments

We can dream all we want but it takes action to make anything change for the better. We have to be able to let go of things that are holding us back and leaving us stuck in the rat race trying to pay for it. Sometimes it takes hard choices. That is why you need to know what it is you really want.

Do you have dreams and a plan to join others quitting the rat race?