How to Escape the Rat Race
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- Опубликовано: 6 окт 2017
- Escaping the rat race is not instantaneous. It requires years of careful planning, hard work, and side hustles. From the 4% safe withdrawal assumption, you can make some educated guesses about how much you need in dividends, passive incomes, royalties, etc. Working backwards, you can also easily see how something as mundane as a simple phone plan can actually set you back 1-3 years of retirement years. Cut the plan, and you retire 1-3 years earlier.
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The main reason why I came to this channel is to take in as much as possible to become finacially independent from the never ending matrix. I thought to myself, as I look around in my job, "There is no way I want to be here until I am 65 and retire." Even more so, such a thing rarely exist it today's time. While you have your 401k etc and everything set up, you get hit by "organizational changes" and now you're unemployed, late 30s, have a home, and a family to support. No way would I want to experience this. Thanks for the wisdom BTB, I really enjoy this content. Btw, I'm in the IT industry, organizational changes happen every year.
Midwest - you can get a 2000 sq ft house, sometimes brand new, 4bd,3ba, basement and spacious yard for $200K or less. You could afford to fly to the Bay Area 2-4 times a month if you miss it.
One of the few channels I watch in entirely.Good info, short and to the point! I like it a lot. Thanks for making it.
"YOUR JOB IS LITERALLY KILLING YOU RIGHT NOW. Don't forget to give me a like on this video!"
Jesus dude... that break-neck tonal shift. You got me fearing for my life. I'm too scared to click like. I gotta go for a walk.
Lol... I was serious so I guess that's why you needed to go for a walk. While working, realize how FAST time flies. 1 year, 5 years, 10 years just zoomed by. I've been not working for 3 weeks not and it seems like I lived for 3 months. Extrapolating, it means I'm going to live 10 years compared to someone working 1 year.
BeatTheBush 100% agree with you. Once you’ve tasted financial freedom it’s tough not to want to shout it from the rooftop! Great video as always
1 2 yep. I work on call as an RN. I work average 6 shifts in a two week period. I love the gift of time. No more new cars, ever. I would never live in California. Way too pricey and populated. I love living somewhere which costs less! Been outta the rat race for two years.
Funny 😄 intro running 🏃. Started watching you because of the credit and being efficient! Been motivated every since from your other great videos!
When you said today that for every $1 dollar you spend, you need $25 invested in order to generate that dollar.... it finally hit me. A lot of things fell in place in my mind. Both for how to think about investing for freedom, as well as time valuation.
Also, one of my mentor's lessons about the damage of Multi-tasking (aka switching) finally really & TRULY clicked: :)
It's amazing how sometimes it takes a different perspective for things to click. Even after reading MMM, the 4% rule didn't really matter. Now... I feel as though it REALLY matters.
This is the reason I made this video. This video is for you. =D
Great advice, especially the car stuff :-) Nice to be retired and debt free. Life is too short. Enjoy your day :-)
Great points and simple to understand delivery.. Thanks for the video :)!
Awesome video! Enjoyed the multiple locations in this video - kept the video very engaging
=D Thanks!
Lol...I loved the running through the places...lol...you are so smart to be at this point in your life....so ahead of the curve...hubby and me are working at it!! Such good advice!!
A Decade To Freedom Hate the word “hubby”.
John Smith - Oh, I get it. MGTOW. Still be careful. You can still get in trouble heeding those screaming impulses inside. One chemically charged indulgence can ruin you for the subsequent 18 + years. Even if you get tricked (by a hole in it), you'll reap what you have sown having tried to outwit women that look like easy prey.
LOL, I'm sure many people hate you too, John. They just don't say it to your face.
This is great advice. Luckily, I have dodged repeated bullets. Like my buddy, Steve-o always says "the next one has to have sparks flying out of her ass before I am interested".
Finally switched carriers, found a plan for $25.00 a month. And purchased a used device for 160. That alone will save me. $2800.00 a year
William Simonson same
William Simonson which carrier do you have
+michael edwards I was able to get on Tmobile family play. As an add on.
William Simonson thanks
I was happy to save $50 month on Sprint. I bought my S6 outright after the contract was up. I tried that Freedom Crap that he uses and no way would I tolerate the massive diarrhea and poor reception/service that he has to deal with.
Alas, we must use these electronic tethers.
At the beginning of the video when you were sitting outdoor instead of in your living room, it looked like you quit your job yesterday and suddenly became homeless today.
hahahaha
Hahahaha
He became wise Lei not homeless
Great vid. Already motivated, but I always like seeing other points of view.
I love this channel so much
I love your videos man, keep up the great work.
Thanks! Will do. =D
Ur videos are excellent thank you for the info
Literally helping everyone who takes time to listen. Thanks.
Set up a Freedom pop account for my granddaughter for her birthday...this makes her understand that it is used for necessity rather then a social event. Thanks for a heads up on Freedom Pop... As for the other things... we are now retired, but have always been frugal ... ok cheap.. but into our retirement years, it has made thing way easier. You are doing a great job in sharing what works for you! Keep up the great work
Thanks! Yup... the freedom pop account, gotta turn off auto reload to not get charged randomly.
Hey Mr. Beat, aka The Bush, love your channel! Love the fact you always reply my comments even tho u have 88k subs (lucky number).
Good info, thanks.
what advice can you give to people in the military, who really have no overhead what should i be doing with my money how should i be investing it. Do you know anything about the tsp plan the military has, is it a good idea. i would really like you to do a video on this for military thanks a lot
Great video 💯%
Great video! I agree with the new car ideals. My whole life Ive only bought used cars. The deprecation is not with the loss o me.
*Great advice ..what FREE cell phone plan do you speak of???*
Wow. Thanks. Brilliant. So clear. I am older, so I have to be excessive in my savings for a few years to build wealth and extricate myself from poverty and SSDI, so I need other avenues for streaming income to replace it. Careful investing really sounds good. I dedicated 20 percent of my income in the brief time that I worked. This guy is a well kept secret. He should have 300 million subscribers.
So astute at such a young age. Hell, I am just looking for a couple decent passive income streams so I can coast, ha, just kidding, I am planning the work and working the plan.
He definitely deserves to have a lot more subscribers! Good to hear you are open minded in such a way you are learning about finances still and making progress - good luck!
I quit my J.O.B. 12 years ago. Started a company, kept my education and skills upgraded...realized we were all doomed with advances in AI. Went on the talking circuit promoting AI & Human creativity. Now I'm back working for a multinational traveling the world for work and LOVING it!
Nice! I suppose if you are working by choice, it's a nice position to be in.
Haha from the grin on your face when you said during your commute I'm betting that you are fixing to not have one! Congrats on Breaking Free
Thank you btb! I hope your message is well received. May I ask, how do you feel about the safety of the 4% rule?
Residue al income. I love it!
thecollegepicker No, it's horrible.
Resi-duel
in order to have appreciate, the guy cant speak engilsh propersly
Enjoy your videos. I also use Freedompop paired with a Google number. Problem is I can't signup for ridesharing such as Uber or Lyft. Do you have suggestion on how to get around this? Thanks.
When you talk about investing in index funds as a source of consistent side-income, surely this has to be predicated on the idea that they will continue to rise indefinitely? I mean just like any other share/stock, the price can fall, so I don't get why people place so much certainty/confidence in holding these assets. Is it something like that if the global economy collapses then the investments won't matter anyway, so in that sense you basically can't lose? Or is it more simply just relying on past trends (i.e. consistently going up a few percent per year) that produces the confidence; I'm interested to know your thought process
Your buds look totally chilled with your new non-rat race style. Thank you for the information. Do you have any ideas on how to get my hubs to quit /reduce cable? It costs more than our utilities in our area :(
Oh, your way of thinking should really help how I look at money now! Thanks a lot! Love your channel!!
Thank you! Money is nothing but a tool. It also makes people do all kinds of things.
It did inspire me!
"... And you can keep this audiobook and listen to it on your commute during your rat race." xD
what do you recommend as far as investments? index funds?
Great video 👍
Thanks!
Valuable advise. Thanks.
You're welcome!
Love your videos beat the bush, I can't wait to be like you
Be like me? Lol. Glad you enjoy them and see them as something to strive for. =D
I really appriciate your videos man, I am an Engineer in Virginia, I hope one day I can get out of the race. I have a family though, so It might take a little longer.
Thanks for the Videos. I am from India and some of the US specific suggestions may not be applicable here, but I pick up most of the suggestions you give and try to apply it here. I am 41 working in IT and I am moving quickly to get out of the Rat Race :) Thank You.
H aha ha... Cool! I bet it may be hard to make more money in India no? I guess the cost of living must be lower there so it sort of works out.
It definitely motivated me!
=D
Good points to tether costs to income streams for f I. I too follow the 4% rule however the cost of living area is hard to overcome. Say you moved to a lower col area in places like Tracy, redding, or middle of no where merced or sacremento at middle age and drive out to see friends and family occasionally in the city. By the time u r in your elderly age you will want to be closer to family more often and in places with better health care and elderly living infrastructure, nursing, care aid, pharmacy, better equipped hospitals, etc. The biggest challenge with living location is the wealthier homeowners in high col areas can always have the opt to move to cheaper col areas but the reverse is not true.
Case 1: software engineer retires and cashes out of Cupertino at age 40 moves to Redding and runs a honey badger farm until 65. Over the 25 years the bay area real estate continues to march upward with some corrections here and there. While the Redding house has not appreciated much. Now at 65 the early retiree cannot move back to bay area if he had cashed out his real estate in the city unless he finds other ways to move back eg family still living there and bum off of them.
Case 2: software engineer continued the rat race longer to 55 to save more , pay off his Cupertino house and some little cottage in Carlsbad. Rents out Cupertino house and retires in sunny Carlsbad. At age 65 wants to move back to the bay to be closer to grandkids and hospital can easily do that.
Conclusion: regardless of exit age it's better to hold on to realty in high COL *coastal* cities forever if u want to be f I with opts.
My fixed recurring costs I count with 2 hands
Property tax
Hoa
Insurance
Subway pass
Electricity
Internet
Cell phone
Food
Total mandatory monthly recurring < $1000 in the worlds second most unaffordable city income to home price wise (Vancouver) . Of course fun discretionary spending is much more and variable because fixed costs have been brought down to unusually low levels. Bank 100% of my FT job for residual income. No I dont live in a tiny house trailer. At a certain age the hardest part is finding someone else who lives similar because even honey badgers don't want to die alone
What types of investment accounts are the ones that allow you to withdraw your earnings every year? sorry i need information, i have some money i can invest i just don't know where or which accounts.
can u explain your phone plan bit more? i am looking for lower cost deal
Thank you BTB!!!
You're welcome!
Francis, do you have a video on your favorite investments? And, do you think the stock market is way over valued right now? Could a big correction be coming?
You should also give some tips on how to ease back without being so strict. For those of you trying to save without going full "BeatTheBush Mode:"
1. you can pay $15-$25/month for unlimited talk and text and about 1 gig of data on a plan, and if you keep the same $200 phone it will really help having the extra $300-$800/year
2. If you need a car for work(walking wastes too much time), then a car is also an investment. If you buy $10,000 car that is new, in 3 years it is worth $3600($6400 loss, 64%) If you buy the same car but it is 3 years old car for $3600, in 3 years it would be worth $1900($1700 loss, 47%, which is only %17 of the msrp). Used cars are cheaper and also depreciate less. So you can still get different cars every year, and in theory you can trade in and only pay the difference.
3. Instead of moving to a cheaper cost of living area, you can just move in with your parents. Or you can buy a house(if a mortgage is cheaper, if not rent your own place), and rent out every room you are not using, keep your used car on the curb and rent out the garage for a tenant to use. Sharing a living space will be a lot cheaper and you can make some nice friends.
This is probably your best video. Simple 4% calculation changes everything... If one wants to have $40k income at retirement and it takes them 3 years to save up $40k then it will take them 75 years to save a million. Holy @#$_&!!!
(crude calculation without compounding)
Good topic
I’d love a video going over the difference in effective pay between working as a contractor and as an employee and maybe an extrapolation to see how it effects how long your rat race will be. Like the different tax rates, benefits, etc.
My first year working at a corporation in the bay area I got sick a lot, developed TMJ, and a lot of new aches and pains. I felt like I had aged 10 years in a few months. I'm almost 2 years in now and I am just used to it. What I'm not used to is how fast time goes by. The 40 hour work week is a myth. Like you mentioned in some of your other videos there is a decompression time when you get home and maybe a few hours on the weekend. Then there are all the things that piled up over the week that need to be taken care of... before you know it the cycle starts again. I can't wait to get out
The 5 day working week is engineered to trap people so they are too busy,tired and distracted to do anything other than drive,shop and watch TV.
Another 💭 If you do have to keep working like many of us,try eliminating the commute by moving close to your work,It would eliminate a lot of stress .
I can average closer to 7% but intend to move the risk down as I get older 3.5% on a bank dividend in canada is well within reasonable ranges. I intend to design a budget that includes reinvesting a portion that gives alot of wiggle room over the long term
When you have a job you really love its not work!!! You have to have medical insurance if your smart. I loved my job, made great money , twenty seven years flew by. I retired because my company offered me a ton of money. I work part time still love my job no stress when you find the right job !!!
what do you do for a living?
One in a million.
Nice video! Did you get the idea of this video from my last video comment? Haha! I made a video about escaping the rat race as well not too long ago. Great way to start learning about this is checking out the book Rich Dad Poor Dad by Robert Kiyosaki.
Chronicle Living 100% agree with the Rich Dad recommendation - another great one is the millionaire next door and early retirement extreme - both drastically changed my perspective on what rich is and what a person needs to survive.
Thanks Matt McKeever! I'll definitely be checking out those books then!
Awesome
Multiple streams of income is a good plan. Yes rental property is good for me. I would be happy to cover living expense with cashflow from tennants. A lot of work though. Once its set up it should be pretty passive.
I think I hear 15-30 properties = 1 full time job. So each tenant is about 2 hours per week I guess.
You are absolutely right! I left my job, my business failed, I am now in debt, and behind in my skills at work 5+ years later. Safety first. Online businesses can come and go. Products change, sales change, competition can squeeze you out. It's not safe. I wish I would have bought Realestate instead. My online shit just disappeared and evaporated.
Very true. Online income is very volatile and can evaporate just like that. Hence in order to escape the race, you need a pretty good margin of safety or maybe an extremely low burn rate.
Freedom Fighter Let me help you with your future
nice video :)
YES,you motivated me to assess my life and I relinguished my debit card to a friend so I don't impulsively shop. I also blocked the shopping channels.
Better not have given the pin away lol. Well... sounds like you might have been in debt due to excessive spending beyond what you make?
I escaped buying REO property. Loved freedom, then my uncle robbed me on a rehab. Lost 100k and got so down i had to sell off my properties. I am now in depression. I should have just bought another condo in Chicago. I had 2 and 1 more i would've been set. Still living in the past. Sucks to know freedom then lose it.
Sad to hear this. One of the pillars of building wealth is making sure you keep it. Of course you know this now. More info here: ruclips.net/video/TJkjCttPgiA/видео.html
When i was a kid, i had a negative burnrate. Now i don't. Guess I fell into the ratrace when i moved out .. why should one ever leave the nest?
Hey Btb new to your channel any idea in how to save money lol I have a real bad habit of spending
I have many videos on how to do that, all in many many different ways. Here is a playlist of saving money: ruclips.net/video/tC7zhLVVU3E/видео.html&list=PLAffnc1joZvYqLX9BUKRBkLShM_abAabZ&index=1
I agree about the cars. I prefer to buy cars 2 to 4 years old with a good engine. Then I use the car until it's used-up. Be sure to get regular oil changes. Of course, some cars this doesn't work with. You have to research into which cars last the best.
Older better! =D 4 year old where more of the depreciation got taken off.
Get a honda or toyota you will be fine.
How does your 4% rule work in a negative year or two? How does that impact your overall plan?
4% Rule applies to people who solely relies on investment income. It's not fool proof... it's more like 99% proof.
I cant believe how stupid I used to be with money! But I did enjoy those cars allot! Great [simple] mindset shifting strategy. #LoveYourLifeNotTheirs
Great video BtB but It’s harder to get out of this so called rat race if you have kid/s to support. It’s doable but a lot harder is all I’m saying.
This is why young men and women need to be educated about the cost of raising children.
Kids are a trap I've avoided
Yes...they are expensive but worth it
True. Still drive my first car for 13 years. And I rent a room to save money. Stopped using my credit cards. Cash only. Like you I still will eat with friends once in a while but I try to eat at home if the family I live with cooks dinner. I'm quite fortunate. I'm looking to invest in Bitcoin. Will have to watch that vlog again. Interested in details on how you pay almost nothing at Banana Republic! Thanks!
Wow.. that's some serious low expenses! Good for you! Oh... for Banana, I'm starting to build up another run of free clothes. Going to happen probably in January, =D.
BeatTheBush And I live in Orange County so definitely lucky because apartments to rent is high!
I'll have to start checking out BR 😅
You said it! Ooooh, I want some of that Shin-sen-gumi over there.
so did you quit your job or did you switch jobs?
3dEx He quit.
What do you think about bankruptcy because I have a car that I pay $520 for every month and the insurance is $290 a month I make $38,000 a year but before taxes it's way lower I did my calculations and I'm supposed to stay with like $200 a month after my expenses but I don't stay with anything what would you do if you were in my shoes?? Because what I'm thinking is that if I got bankrupt I could just buy myself a cheap car and pocket most of my money ever since listen to your channel I started to analyze my spending allot more
BlackStar I'm not religious but Dave Ramsey has some points too look him up
Where can I buy those sunglasses? Or who sells those sunglasses?
They are cheap generic ones. I think the company sells them fro $12 but I wouldn't buy them, just grab some freebie ones, you don't have any of those?
BeatTheBush well, when you put it that way...
A point you might want to talk about is a 'skill' something most people can not do that takes years to master. for example I always loved piano and played a little almost every day, after 30 years I am one in a ?million? so it pays well. Any skill pays better than a job. Anyway good work!
Nice to hear you have a masterful skill! You can improve yourself in any skill you want as long as you put in your hours and make sure you improve a little each time. I sort of go over it a bit here and there but not really as a video by itself so far.
You can always go all the way with owning a minimalist home, minimalist clothes etc. Then if you work just to collect cash you don't really need. Why not just get a job that is fulfilling that not necessarily pays a lot? Please do a video about comparing your lifestyle and minimalist lifestyle.( they seem to be out of this world, melancholistic, spiritual and socially unadjusted)
Hey BTB, I'm 18 (hitting 19), so what would be a good way for me to start, to escape the 'rat race'? So my life, has basically nearly started. I'm starting university next year, and all the advice you have given on your previous videos have shown me that, I should do a degree that is valuable, and will produce a substantial amount of income (hopefully), and of course having the element of enjoyment.
Lol... 19 and escaping the rat race? I suppose you can if you decide to just jump right into entrepreneurship but that takes guts and it's pretty risky.
Lol yeah a bit too much! But what could I do, to help me become financially independent within the future (well increase my chances of financial independence) ? Are there any books you would recommend? Frugality?
Thanks for the reply btw! :)
Watching this channel will help you do that, lol. Here is a playlist on investing you should look over: ruclips.net/video/q_jZb7O6Luo/видео.html&index=1
get a job, work a few years and then think about escaping the rat race. you haven't even started the race at 19 and don't even know what you want to do with your life. Get an education, vocation school, community college, apprenticeship, bachelor degrees
I guess I have an idea, but I completely understand what you're saying.
Military medical discharge I guess I am out of the rat race temporary. I got less than a year of it
When you quit your job, why did you do about your health insurance situation? I would assume that you have health insurance. Thank you for all your postings. They're very information, and entertaining.
I made a video about that here: ruclips.net/video/zztaG_VP5no/видео.html
Woot!
Since you said work is killing you does that mean you want to work less? I know you're currently in between jobs
Work is killing you... the desk jobs I mean. Now... that is work in a typical sense. The goal is to retire early and work even harder on my passions. Something I keep on recommending. =D
This makes me appreciate my job so much more. I don't ever feel like I am in the rat race.
Not feeling like it is very important. If you enjoy what you do then all the better. Of course, you might not want to listen to me too much more because I have a way of convincing you otherwise, lol.
So what I had with Verizon was the old grandfathered unlimited data with unlimited Hotspot. With three lines. Verizon was throttling me down to less then one meg download speed. Of course they continued to deny so I found a different solution. I was with them. Since 1998.
Do you have advice about buying a car? I have to go buy this money pit 😦
Well, then, I may have to work forever for I'm just a call center agent! Very enlightening video,though. Thanks, BeatTheBush!
Yup... it looks like that. If you earn at a lower level then it's very hard to save. You can only cut so much in expenses. Best to better your career somehow.
bernadette javier I can help you with your future
So I recently read this article about senior citizens in the US getting scammed out of their money because of state guardianship, and it was terrifying.
Would like to hear your thoughts about it. Here's the article: www.newyorker.com/magazine/2017/10/09/how-the-elderly-lose-their-rights
Can u do a video on how to deal with healthcare after you quit your job?
Huh... it'll be a very short video. I just buy it in full.
I think you need to find a deal on a baby gate. In another video, your dinosaur is about to fall through the railing at the top of the stairs; in this one, it's bat who's at risk. To be a responsible stuffed character parent, you must implement safety features in your home. Not only is it important for the health of the characters, but think of all the medical costs you can save on by preventing accidents! ..... ;-)
Lol... I feel T-rex is not really a baby... well small compared to larger ones but he's a pretty large compared to IceBat. =D
Resi-duel income !
Residual has the accent on the 'si'
Yeah, phones, cars, mortgage are important expensive alligators, but staying healthy will minimize HUGE medical bills. Be awesome, thanks for the tips !
Ahhhh... It's making me crazy. Ree-zid-you-wull, not Rez-eh-doo-all. Thanks. Carry on. :)
LOL
actually you will need 4% + inflation, which would be like 6 or 7
you basically have to live in the past with your phone and pay the minimum of data and not use too much internet like back then. having the cheapest phone and paying less for phone service really helps. My current phone plan rapes my wallet sometimes.
Well, sort of. With an older phone, I still have access to apps, gps, emoji texts, facebook, etc. No 3D graphic intensive games nor very high quality pictures though.
That is what I have been trying to for a long time but very few people understand it. lol
That's why few make it. =D
sitting is the new smoking
AT&T has a prepaid plan for 28 bucks a month. I have kids so need the cell service. Can't risk freedom pop that won't give me adequate service.
Someone else talked about this. Let me look into their prepaid plan. I see a $30 1/GB/month plan. Where you see the $28 one?
It is best to assume that the inflation is gonna be covered by investment returns as we are building up investments?
I thought the 4% rule was a little different. Generally a investment should give you 7% per year and over the last 100 years inflation has been about 3%. If you put these together you get 4%. So if inflation increases or you don't get 7% p/a return the 4% number will change. I hope your new job goes well.
I always knew you were one of us at r/fire
I only described how to do it. I'm still some ways to be completely retired early to the point of having the ability to not do anything that makes money.
I meant as in relying only on passive income.
you should say also
dont waste your time in interteiments and skill up so you can earn more
I guess I take that for granted as a given.
2:11 not everybody has $20,000 to spare
Not only not everyone can escape the rat race, most people cannot.