Monday, February 10, 2014

90% of White Collar Workers Will Never Escape The Rat Race. Here's why:

Recently, while going through the boards on Quora, I stumbled upon this post on "How should a 22 year old invest his/her money?".

If you had the time to read through the post above, you would realise that the author based his calculations on a 10% interest/ROI on an average employee's 20% savings rate. His projections looked solid on paper although the optimistic assumptions are debatable.

However, what baffles me is the comments below that post.

While only a few commenters were receptive of the idea, most commenters quibbled over the possibility of a 20% savings rate and a 10% ROI/interest rate.

Here's one of the comments:
"20% savings rate is actually ridiculous. Even over time as your income increases, you will incur many new expenses (once you start a family). Not to mention all the big expenditures (student loans, car/transportation, house, marraige etc) While it is easy to assume a 20% savings rate, it is highly unrealistic." 
The very fact that this corporate rat has accepted the fact that expenses such as transportation, buying a house (for own-stay), marriage and student loans are "unavoidable", he has already sold himself, voluntarily, to the corporate treadmill

90% of white collar workers do not see how important is minimalism in this journey out of the rat cage. In fact, if he understood minimalism well, he would see that a 20% savings rate is not at all impossible!

Another interesting comment:
"I'm intrigued as to why anyone would want to actually do this. Why spend the majority of your life having 20% less fun than you could be having?What is the goal of accumulating wealth and doing nothing with it?"
If you define fun and fulfilment in your life by spending that extra 20% of your income, then you will always chase that 'fun and fulfilment' in material stuff that will never satisfy you. When you finally realise this fact, you'd be 53 years old and it will be too late.

On to the argument of 10% ROI/interest rate, well this is debatable but I guess this is where preparation (investing in oneself) meets opportunity. It's not guaranteed, but not impossible as well.

Why approach the rat race with a defeated thought?

It's not because the market is unfavourable.

It is because 90% of white collar workers give in to a fated life of chasing things that don't provide fulfilment.

It is because they are all running on that damn rat wheel.

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