Are you in the Rat Race?

Have you ever asked yourself this question? I believe maybe not. Here I am providing you with the ins and outs of it.

What is the Rat Race?

A usual scene in our society is that Highly or average educated parents give some thought to his/her children visiting school, getting good marks, and getting an honest job. These are the items taught to children to achieve success. But the importance of cash and the way to be financially intelligent get neglected in both school and society. Getting good marks, Getting good job are the core thoughts of the best a part of the population. Employment holder does his/her job during a specific day to day, and a selected period of time, He or She gets only a selected weekend to require rest. Not having enough knowledge, They fall into a financial crisis in terms of fulfilling needs. Mainly this part only works hard for money for their whole life. They just run here to there to solve their financial issues. This happens from generation to generation. What is known as the “Rat Race”.

How to get out of this “Rat Race”?

The solution may be rounding in your mind. Try to guess what can be the solution to it!

Knowing about “Accounting and Investing” is the solution to it. What we were not taught in school and college. How to get good marks, then how to get a high paying job was learned. What makes one poor are Fear and Ignorance, nor the Government, the Rich. People struggle between fear and ignorance. Investment is such a thing which occurs as a part of Income earned. Most of the average people just spend what they earn without thinking about investment. Hearing the word Investment, we just go to think about a large sum of money. But it doesn’t make sense, you can create a great one by investing a little every month.

To get one out of this circle, one should know about the rules of generating money.

There are three types of Income source:

Active Income( Work hard for money)

Passive Income( Have money work for you)

Portfolio Income( Investment)

We just work hard for money, but don’t know how to have money work for us. We can create such wonderful sources of Income without doing work actively such as making courses, writing books, making content, doing investment.

To be financially strong, one should create more assets than liability. Creating assets means to pay yourself first it means to set aside a portion of income first to buy assets and invest in securities. To create assets, Expense should be lessened.

Then, Investment, Assets have money work for you.