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Out of the Rat Race

My dear friend, want it or not, there is a very high likelihood that you are in a Rat Race...

Every working day of your life, you wake up, and you run on the same track. Same known hurdles, a few new unexpected ones, and a short-term finish line in sight by the end of the day, week or month. One more pay cheque!

Instead of working to pass the same hurdles, at some point, ask yourself a few questions. Come-on! Ask the bloody right question!

What about running on a different track?

...and every now and then, as you run on the same bloody track, you are reminded of this simple choice:

Lifestyle first?
Financially Free first?
or Racing till the end?

Read this book if you'd like to run on a different track!
Book content

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Over 25 years of learned experiences condensed in 330 pages

My journey started by participating in start-up projects. As it looped from challenges to opportunities, I discovered a few fundamentals in life which I now share with you in "Out of the Rat Race - the Quest for Financial Freedom" through many stories.

The first one, relating to financial independence, is that income is what matters. Capital can be eroded by inflation, mis-allocated by inexperience, or spent by vanity. A steady passive income for life matters a lot more, so this is what you need to engineer for yourself and your family. I will help you do this.

The second one is that strong human values and grounded life principles matter even more than income, because your future passive income is just a consequence of these. Therefore, you have to work relentlessly on yourself to become a better person. I will also help you ask the right questions.

And finally, the third one is that a meaningful purpose in life transcends all of this. You should never lose track of purpose because it is what could deliver the most rewarding exit of the Rat Race you would ever dream of. But that is for you to discover...

Welcome to my Journey!

11 steps - 40 pages

This first foundational section takes us into a journey through time, to rediscover what money really is. The first steps, titled “invention of...” are slightly romanced for entertainment purposes, even if still very close to what really happened. After this, we jump into the hard facts of money in modern times.

10 steps - 32 pages

This foundational section is as far away as I will go in this journey to financial freedom from delivering actual financial recipes. This part may seem less related at first sight, but I cannot conceive how to drive the long journey to financial independence without at the same time improving oneself as a person. Ignore this section at your own risk.

8 steps - 34 pages

This third foundational section establishes a minimal common background necessary to approach the rest of the book. It also gives a good peek into the way I structured regular reviews of my personal financial situation.

7 steps - 52 pages

The foundational sections have given us some good background. Now, buckle up because we really start our journey. The Excel simulator is our friend and we will make good use of it for various topics which are at the core of your future financial independence. You may find some surprising truths.

10 steps - 50 pages

After having identified the property rental business as a must have asset class on our road to financial freedom, we address the most important questions one may face when playing this game. The very practical advices provided here will help you stay constantly on the winning side.

6 steps - 34 pages

It was not an easy decision to write so openly about parts of my personal finances and my long journey to financial freedom. However, I cannot see how another generic and anonymous investment case would bring enough learnings to you, dear reader. The lessons are in the life we live. Please accept this chapter as the many lessons I progressively learned by actually making those bad and good decisions.

6 steps - 30 pages

If you are still with me at this stage, very well done, you have gone through most of what you need to be financially free. But what will you do with this new freedom? We will take a bit of distance from the financial world to explore some facets of your future lifestyle.

11 steps - 32 pages

Some of these other games were supposed to unlock my financial independence very early. But it did not happen this way. Therefore, I found it fairer to relegate all this financial playground at the end of the book, after independence reached through slower but steadier property investment. It does not make them any less important. They all have a big part to play, but I suppose I found most of them less predictable.

2 steps - 11 pages

This part is about making conscious choices for your life and shaping your journey by playing games made of risks and rewards.

Book extract and content

There are many rewarding games at your disposal. If you have decided you’d like to exit the Rat Race through the financial freedom door, first you need a plan (knowledge, tools and principles), but second and most importantly, you need to play the damn games.

My dear friend,

You are about to embark on a journey, you have no idea! Do you really think it is plain sailing ahead? It is by struggling and failing and falling and getting back up that you will achieve your most ambitious and dearest projects. You think you know what they are? You have no idea! Life will change them, and life will change you.

Sit down a moment. Give me just a few hours now, for a lifetime of learning. Here is the deal and my present to you. This book is for you. It is a condensed story of the most important lessons I learned in the last twenty-five years. Some experience and wisdom that can make the difference to your very own next twenty-five years. A promise to make you a better person in a few hours’ time.

As you are clearing all hurdles, fast and furious, without any second thought, just pay attention for once. You will have plenty of time in your life to achieve what you want and more, but first and foremost, you need to understand the world around you and the world inside you. What do you stand for? Which achievements will stand true to your values? Can you engineer your future life? I know, you think you should not bother with these questions. But that’s exactly why you need me now. Getting clarity on such simple questions will determine the direction of the track on which you run. And let me tell you this right now: it’s bloody important to run on the right track!

Listen carefully my friend: there are many things you take for granted, but you should not. Even the little spare cash you have in your pocket, you think you know what it is, but really... you have no idea!

Let’s cut to the chase. I will now give you all the material you will ever need on your arduous journey to pause, reflect, analyse, take action, succeed, accept failure, learn, and improve beyond all your expectations, so that you get financially free, out of the Rat Race, and become the best possible person you could ever be. This book is your guide. As you mature and understand the world better, open it again and in the light of your new experiences and wisdom, you will be surprised to discover a treasure of new valuable lessons.

So here it is. Do you really want to get out of the Rat Race and be financially free starting from nothing and nowhere? I am afraid there is no shortcut. Only your best friend’s advice.

What are you waiting for?

Sit down, relax, and turn the bloody page!

Yours truly

Eric

BOOK CONTENT

ABOUT THE AUTHOR XI A LETTER TO MY YOUNGER SELF XII

Ground Zero

STEP 1: WHAT WAS HE THINKING? 2 STEP 2: A FARM FOR A POT OF HONEY 3 STEP 3: INVEST LIKE A LADY 6 STEP 4: FOUNDATIONS ARE DUE A RESET 8

Foundations – money

STEP 5: THE INVENTION OF COINS 12 STEP 6: THE INVENTION OF NOTES 14 STEP 7: THE INVENTION OF LOANS 16 STEP 8: THE INVENTION OF TAX 19 STEP 9: THE INVENTION OF INFLATION 21 STEP 10: THE INVENTION OF INTEREST 23 STEP 11: THE INVENTION OF BANKS 29 STEP 12: THE INVENTION OF CREDIT 32 STEP 13: FRACTIONAL BANKING 34 STEP 14: AND MONEY BECOMES TRUST 40 STEP 15: DEREGULATION AND GLOBALISATION 42 STEP 16: THE ALCHEMISTS 45 STEP 17: INTO DEBT 49

Foundations - attitude

STEP 18: DO NOT GET INTO DEBT 54 STEP 19: BE A BETTER PERSON THAN YOU WERE YESTERDAY 58 STEP 20: DEALING WITH STRESS 60 STEP 21: TWO BRAINS FOR ONE PERSON 64 STEP 22: POWER OF TRUST 66 STEP 23: POWER OF YOUR CIRCLE 68 STEP 24: DEALING WITH THE UNKNOWN 70 STEP 25: ALWAYS TAKE THE LONG VIEW 73 STEP 26: BEWARE THE SALESMAN 76 STEP 27: WHO ARE YOU? 79

Foundations - finances

STEP 28: NO TRICKS BEYOND THIS POINT 82 STEP 29: YOUR NEW ARITHMETIC TABLES 86 STEP 30: FINANCIAL CRASH COURSE 92 STEP 31: INCOME AND CAPITAL 98 STEP 32: FINANCIAL DASHBOARDS 100 STEP 33: KEY PERFORMANCE INDICATORS 103 STEP 34: TAXES AND FEES 106 STEP 35: MONEY AS WATER 108

A new dawn

STEP 36: IN EMPLOYMENT 114 STEP 37: A RAINBOW OF MONEY 120 STEP 38: INCOME VS FREEDOM 130 STEP 39: DEBT FREE FALLACY 135 STEP 40: FROM HUMAN TO FINANCIAL CAPITAL 140 STEP 41: RISK ON CAPITAL 149 STEP 42: A FIRST INVESTMENT PLAN 154

Enter the Property game

STEP 43: ANATOMY OF A GOOD DEAL 162 STEP 44: WHAT YOU BUY 163 STEP 45: HOW YOU FINANCE 166 STEP 46: OPERATIONAL RATIOS 169 STEP 47: PROPERTY MARKET SLUMPS 178 STEP 48: OPERATING AS A BUSINESS 183 STEP 49: PRACTISE, JUMP, AND IMPROVE 187 STEP 50: INDEPENDENCE IN SIGHT AT 3+1 190 STEP 51: NO GOOD REASON TO SELL 200 STEP 52: IS YOUR HOME AN ASSET OR A LIABILITY? 202

Real case study

STEP 53: IN NEED OF A MOMENT OF TRUTH 208 STEP 54: NEW BEGINNING 210 STEP 55: THE CASE FOR SELLING 212 STEP 56: CASH BUY FROM HOME LEVERAGE 217 STEP 57: HOME SWAP FROM HOME LEVERAGE 220 STEP 58: DREAM HOME FROM HOME LEVERAGE 230

Enjoy your new freedom

STEP 59: LEVELS OF FREEDOM 238 STEP 60: LIFESTYLE 240 STEP 61: QUALITY OF ACCOMMODATION 243 STEP 62: QUALITY OF TIME 248 STEP 63: MONEY VS TIME 252 STEP 64: WHAT WAS THIS ALL ABOUT? 260

Other financial games

STEP 65: WRAPPING-UP REAL ESTATE 266 STEP 66: MR MARKET 267 STEP 67: INVESTING 271 STEP 68: RETIREMENT ACCOUNTS 273 STEP 69: FINDING YOUR PLACE IN THE WORKSPACE 277 STEP 70: FREELANCE OR SMALL LIFESTYLE COMPANY 279 STEP 71: MONEY PRINTING VIA INTERNET-BASED VENTURE 282 STEP 72: MONEY PRINTING BY GROWING A START-UP 284 STEP 73: MONEY PRINTING BY FLIPPING LAND 290 STEP 74: OTHER OPPORTUNITIES 291 STEP 75: TO PARADISE WITH SIMULATORS 293

Leverage your life!

STEP 76: LIFE IS A JOURNEY 296 STEP 77: BUT WHAT A JOURNEY! 299

Appendix

THANK YOU 306 ADDITIONAL RESOURCES 307 SOLUTION TO THE INVESTMENT CASE 308 GLOSSARY 310 REFERENCES 313 INDEX 314

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