Who's Out of the RAT RACE ??

[Rixter]

From: Rixter ®


High Achievers,

I was thinking about why we Invest in property and got to thinking about just who here has actually achieved the end goal of being Totally Financially Independent and out of the Rat Race living off their passive incomes created from their Property Portfolios.

So come on all you modest Forumites please put up your hands up and gives us a brief outline as to how long it took you to achieve Non Rat Race status and what property vehicle & strategy you applied to get there.

Happy Investing,
Rixter

 

[Jacque]

Reply: 1
From: J Parker


Hey Rix!
Though I'm not out of the rat race (yet) I think everyone has a different definition of what this actually means. For me, it means being able to live quite comfortably off the proceeds from my properties and shares without the NEED to have to actually work.

I may class that as bringing in $70K p/a as passive income, whereas someone else might be happy with $40K, $100K or not satisfied until it's up to $200K. Whatever. To me, being financially independent simply means being ABLE to stop work, if I want to.

I envisage this happening in our situation (my husband and myself) about 8 yrs from now. As for getting out of the actual rat race, well I love Sydney and won't ever move!!! Each to their own, as the saying goes.

I would love to hear from members of the forum exactly what their definition of being financially independent entails. It could make for an interesting thread. Bring it on people!!!
Cheers, Jacque

 

[simonjulie]

Reply: 1.1
From: Simon and Julie M


Hi Jacque

How many people do you know who are financially independent that don't work?

My observation has been that the type of people who achieve financial independence are unlikely to stop wanting to be productive in some way. After all, when you're on a roll - making money - why would you stop?

There is a term "the idle rich". I haven't met any idle rich people yet. Only creative and productive ones.

Regards
Julie

 

[lawsjs]

Reply: 1.1.1
From: Jeremy Laws


I have become entrapped in what I wanted. The deals I made in search of the goal became the goal. And so endeth the lesson.

 

[WebBoard]

Reply: 1.1.1.1
From: Darren B


I do wraps full time, with more than enough passive income to cover my expenses. Took me two years. I still do deals and couldnt imagine not doing anything at all.

 

[geoffw]

Reply: 1.1.2
From: Geoff Whitfield


But Julie, you're "out of the rat race". You and Simon are "in the fast lane", in the words of the cashflow game. Your income from passive investments exceeds your expenses.

You choose to keep doing something you enjoy- but you're in a position you could drop it all at any time, and still be comfortable.

But, hey, in the fast lane, why stop?

I'm trying very hard to catch up.

 

[Joe D]

Reply: 1.1.1.1.1
From: Joe D


Whilst I am not financially independent yet, my goalposts have shifted. When the only thing I had was my job, it was a chore and I always dreamed of doing something different.........

The reality is that now I am doing something different (albeit part-time IP investment) it has totally changed my focus and even allowed me to enjoy certain aspects of my dayjob. That is, I can enjoy the positives and learning aspects of my dayjob whilst at the same time know I am working towards my (and my family's) own end goal.

This is a major benefit which I think many people under estimate. Life is now ! Live it and enjoy the journey. If you hold off on the expectation that sometime in the future 'things will be better', then most likely you will be sorely disappointed.

Its only a RAT RACE if you choose to be a rodent!

Enjoy

Joe D (the part-time philosopher)

 

[always_learning]

Reply: 1.1.2.1
From: Always Learning


From Jim Rohn's (www.jimrohn.com) ezine today:
<p>
<ul>
<li> Unless you change how you are, you'll always have what you've got.
<li>
To have more than you've got, become more than you are.
</ul>

<quote>

You see, what you become is far more important than what you get. The important question to ask on the job is not, "What am I getting?" Instead, you should ask, "What am I becoming?" Getting and becoming are like Siamese twins: What you become directly influences what you get. Think of it this way: Most of what you have today you have attracted by becoming the person you are today.

</quote>
<p>
It may sound silly, but by the activity of "investing" I honestly believe I have become a better person. To achieve the goal of being "out of the rat race", must first require I have changed for the better. (Does getting grey hairs count?)

 

[Jakk]

Reply: 1.1.2.1.1
From: Jakk Bass - The SLUM LORD


G'Day All

Does anyone ever "get out" of the rat race?
We are in it for life. The finishing line is that coffin at the end and who really wants to get there.
Everyone commences at the starting line, as the race progresses some may get further ahead, a pack usually forms around the middle and there are those that lag behind.
The ones that lag behind may be able to muster up that extra urge to push themselves that little bit harder and reach the middle group.
Some in the middle group may be a bit more determined and strive to reach those that are out in front or at least get closer to them.
Ideally it would be great to get so far in front that by looking back you can not see anyone approaching.
Achieving this position, one has the choice of now just reducing the travelling speed to a leisurely stroll or pushing further ahead to increase the lead.
But this choice can only be made by having put in the effort previously to get ahead of the pack.
But at the end of the Day, that coffin awaits everyone, and that is the finishing line.
This is a race I hope will last a long time, as I intend to stroll very leisurely to the finishing line, having previously put in the hard yards to get ahead of the pack.

regards
Jakk
a slow walking SLUM LORD

 

[Anonymous]

Reply: 1.1.2.1.1.1
From: Anonymous


Jakk

I don't agree.

1) I don't see it as a race against other people, only a race against yourself to achieve your goal(s) before you end up in the coffin. It doesn't bother me that there are people infinitely stratospherically richer than I am; in fact, I have a peculiar fascination with massive wealth a la Sultan of Brunei, Kings of Arabia, Sheiks of Araby, Nizams of Hyderabad etc and how they spend it.

2) Surely you've left the Rat Race once you're at strolling speed?

3) You're not being a bit morbid, are you? - you make it all sound terribly depressing - you're not going to jump off the Bridge or anything, are you?

 

[Sim]

Reply: 1.1.2.1.1.1.1
From: Sim' Hampel


I prefer to think of it as getting out of the ratrace once you can stop being a wage-slave and still maintain a certain standard of living and continue to invest.

 

[adaran01]

Reply: 2
From: Adam Randall


for me it is very clear cut and always has been.
The Day I earn (in todays buying power) 60K per year after taxes without having to get out of bed, with my own home paid for is the day I will stop giving 8 hours per day of my most productive time to someone else, and if I get to that point, and want to keep working it will be because I want to, not because I have to.
I'm on my way my rentals earn me over 30K a year although I still have a sizable mortgage, so I would put myself at the 1/6 to 1/4 of the way to my goal. I'm 28 so time is on my side (its taken 8 years to get here).
I was talking yesterday to a customer who is 59 and is having chemotherapy for prostate cancer, he is now going to retire early. His priorities have changed drastically, spending time with his family and doing things that are important to him, not worrying about the small things. I am lucky because I do not need a life threatening situation like that to work out what is important in life and what is not.
At the end of the day most of the people are on this forum, not because they like collecting properties, or the fun times with tennants, its because its the key to total freedom ie picking up the weekend paper, reading the travel section, thinking I'd like to go to that small tropical oasis for a month or so, picking up the phone, booking the tickets, with the biggest worry being whos going to look after the dogs.

 

[WebBoard]

Reply: 2.1
From: M O N T O


I am just thinking for someone who's out to the rat race by now probably wouldn't be here checking the posts. S/he would be in some tropical islands sipping the pineapple cocktail and watch the sun set, or drinking some nice wine in the little French village...
That's what my definition of out of the rat race is - enough passive income to enjoy myself 24 hours a day whenever I want.
The reality might be, by the time I am rich enough I will probably enjoy making more money than having a great lifestyle whole day.

 

[Rixter]

Reply: 2.1.1
From: Rixter ®


It appears we dont have too many Modest Financially Independent Property Entrepreneurs visiting this forum anymore.

Apart from Darren it seems the post I started took off on a Tangent away from what I was originally asking.

So come on guys how about sharing with us??

Happy Investing,
Rixter

 

[rambada]

Reply: 2.1.1.1
From: Paul Roberts


Agreed, cut the crap, who's done it?

 

[landlubber]

Reply: 2.1.1.2
From: Peter Henery


Hi Rixter,
I don't strictly meet your criteria, but that is by my choice for the present. I'm certainly to the point in Jan's book where I could easily sell down the portfolio and reduce the loans and "retire" with a reasonable income,but,like the mountain climber,the assent of one peak sometimes reveals others to be climbed. Plus, when you get this property thing going it does grow considerably during "the cycle" and that's real good fun !

As Jan says in her book .If your definition of retirement is doing what you enjoy, then that's what's important. But I never intend to retire, just to do different things.

If somebody considers that they are "in the rat race" then I don't think any number of investment properties will get them the magic "out". Other matters need to be addressed and that's none of my business. Even with properties there are always matters to be attended to, but that suits me.

I thought four investment properties would be "nice", one for each of the kids, then two each and then , three etc etc. Most of the portfolio is in Melbourne, but then land tax kicks in as the numbers grow, and so now we're buying in Qld. Firstly to "catch" the Qld.cycle (2002 to 2005 seems to be the accepted "gurus" time frame),& secondly to acquire in another state for land tax reasons. We've done quite a number of "fixer-uppers" and I really enjoy seeing a run-down property come alive and then produce an income and give nice people a nice place to live. I enjoy my "day-job" and enjoy immensely seeing the properties "do their thing" ...which is basically sit there and grow in value !

Does that help you ?
This is my first contribution to this forum so go easy now !!

Peter H.

 

[DaleGG]

Reply: 2.1.1.2.1
From: Dale Gatherum-Goss


Woohoo!!!! Well done Peter!

 

[yuch.]

Reply: 2.1.1.1.1
From: Yuch .


Talking about the definition of getting out the 'Rat Race', here I have something to share with you all.

My definition of "Out of rat race' is: have enough passive income to replace my salary.

A girl I work very closely with at work was whinging to me about not getting enough pay rise. And she asked me if I negotiated my pay rise in my performance review. I told her, I don't really care if I get a good pay rise or not, as long as I have enough to pay the bills and still have enough to invest I am happy.

She looked puzzled, and asked me 'I thought you want to get out of your rat race real soon?' I said 'yes'.

She said, 'Then you should ask for more pay or go and find a better pay job, so you get more money.'

I then realised that her idea of getting out of rat race is really what we call 'Upgrading the wheel'!

And we have plenty of people like this in our company. Very depressing!!


Regards
yuchun
~ The secret to success is to start from scratch and keep on scratching. ~

 

[Rixter]

Reply: 2.1.1.2.1.1
From: Rixter ®


Excellent Work Peter, and well done on your successes....thats exactly what Im after on this thread people....Dont be shy Guys. I was beginning to think that we dont have any Financial Independenters here...
Happy Investing,
Rixter

 

[Tibor]

Reply: 2.1.1.2.2
From: Tibor Bode


YC,,

You wrote
"She said, 'Then you should ask for more pay or go and find a better pay job, so you get more money.'
!!!!!!!!
and buy a bigger house and a new car and more doodads
!!!!!!!!
I then realised that her idea of getting out of rat race is really what we call 'Upgrading the wheel'!
!!!!!!!!
as above
!!!!!!!!
And we have plenty of people like this in our company. Very depressing!!"
!!!!!!!!
They are just the people RK and JB (and sure some others as well) talking about.
More money, more spending, even more money, even more spending (keep up with the JONES)
Obviously her house is an ASSET (the bank manager told her and the R/E agent told her, not even talking about her parents),
as a matter of fact its her BIGGEST asset!

My view, just keep on doing what you are doing, you WILL BE out of the rat race, she won't!
!!!!!!!!!

Cheers

Tibor