Too many rats for one race ...

Hi everyone!

This is slowly becoming a monthly newsletter. Let’s call it “sporadic reflections” and move on.

Anyway, let’s get to today’s newsletter.

This is my first attempt to write about a finance-related topic. I am no expert, believe you me. I am simply noticing a pattern.

People are earning more than ever before, yet still feel broke. This applies even to really high-paying jobs. Sound familiar? These days, there are promotion opportunities everywhere, side hustles are increasing, and annual salary increments are expected.

This is what we call the RAT RACE! Funny how we are compared to vermin in this particular race.

Let’s define it properly.

The rat race is the endless cycle of earning more, spending more, upgrading more, and still feeling like you’re one step behind. It is forward motion without real progress.

The “race” is aptly named. Every race has a finish line. In this one, the finish line always seems to be the end of the month.

But here’s the uncomfortable part: income is rarely the real problem. Management is.

We convince ourselves that the next promotion, the next side hustle, the next “big opportunity” will fix everything. Yet more income without structure simply funds a more expensive lifestyle.

The month stays longer than the money.

Getting to the end of the month and escaping the paycheck-to-paycheck cycle has very little to do with the next “big opportunity”. There is no guarantee of winning the lottery, getting a massive return on your investments or even claiming the inheritance you’ve been hoping for. Discipline in managing our finances gets us to the end of the month, and if we do it well enough, we might even have something left over.

Awareness:

As I’ve said, you cannot escape a race you are not aware of. Awareness is where the real shift starts. Once you realise you’re in the rat race, you can step back, examine your finances honestly, and start keeping track. The important thing is to track expenditure, cut back on costs, say “no” to more things and make adjustments as you go.

It’s like going to the gym (for people who do that kind of thing, and yes, I’m “people”). At first, there is a sudden burst of motivation and optimism. The first few weeks feel mildly insulting, injuries are plentiful, and you hurt in places you never imagined. You perspire, with absolute conviction at that, but it seems like nothing has been happening when you look in the mirror for months on end. However, months later, you start noticing changes in strength and your overall physique.

Money management is no different.

At first, when you consider your financial situation, it might seem like an impossibility to turn things around. By setting goals, building systems, actively managing your money, and reducing expenditure, we might just make it through. Add in a sprinkle of discipline, and you’ve got a wonderful recipe for success.

The rest is up to you.

All of the best.

Euan