August 5

By Ralph

August 5, 2019


As someone who followed the path of pursuing higher education with the thought that it would be the key to success in life.

I quickly learned that this wasn’t going to be the case. In actuality, it was setting me up to be something I was never meant to be.

Which was an employee. You see, I wasn’t a great student. Rarely did I get A’s and B’s in my classes.

To be honest, I finished undergrad with a 2.1 gpa, with a degree in economics.

This is after I got kicked out of school of business during my sophomore year for having poor grades.

So after graduation, like everyone else, I looked for a job even though just the thought of working a 9 to 5 made me want to throw up.

But without really understanding the alternatives, I did what I had to do to live.

It wasn’t until I read the book Rich Dad Poor Dad by Robert Kiyosaki, where many of my questions got answered.

Because of this book, I started my journey to get out of the rat race.

So What Is The Rat Race

It’s pretty much a way of living in which someone exchanges their time for money.

We all have this thought in our mind that if we work hard at our jobs, we can get the things we want. Like when trying to make more money.

We feel that we need to work hard to make more. But when we actually make more, we work even harder to make more than that.


Keeping us in a vicious cycle of chasing money by working our 9 to 5 jobs. But there is a way out of the rat race.

Yes you could just quit your job and live the “simple life.” But that will depend on what you’re trying to get out of life.

Another way is something the wealthy have figured out, which is creating passive income.

If you can get to a point where your passive income exceeds your expenses, then you are officially out of the rat race.

I’m sure we’ve all heard of passive income, but few actually believe it’s possible to obtain.

If this sounds like you, just know that I felt the same way at a point in my life. But I was able to figure it out, and eventually got out of the rat race. 

How I Got Out The Rat Race

Made It A Priority To Learn How Money Works

I mentioned in the introduction that what changed my life in terms of mentality, was reading the book “Rich Dad Poor Dad.”

That book helped jump started my pursuit of financial freedom. Even after reading the book,I still lacked an understanding of how money worked.

So 10 years later, I purchased a board game called Cash Flow 101. This is also from the Rich Dad series.

There’s also a book called cashflow quadrant, but this game changed my life financially.

For those that have never heard of this game, it’s pretty much monopoly on steroids. It teaches you how to acquire assets that help you create passive income.

The more assets you can obtain, the better your chances of getting out of the rat race. This is how the wealthy operate.

Made A lot Of Sacrifices

Today, everyone is looking for a quick way to make money. But unless you’re able to win the lottery, there’s no such thing.

If you expect to live like no one else can, then you have to be willing to do what no one else will.

So I had to make huge sacrifices like hanging out less with friends and family. Watching less tv and educating myself more about money.

There were so many things I wanted to do, but knew I couldn’t if I was expecting to take control of my financial future.

Reduced My Expenses

I can attribute the reduction of my expenses a lot with my decision to make sacrifices.

After playing the board game cashflow 101, I knew I had to get a better handle on my finances.

At the time, I was living in my parents house, after having sold my condo 2 years prior. So when I played the game, I knew I had to go even deeper.

I had a car lease that was expiring soon, so I decided not to get another car and use one of my father's car.

I got rid of my cell phone service and used google voice which was free.

I also stopped paying my credit card debt because it was getting me nowhere to make payments on them.

The only things I had left to pay were my gym membership which was $26, and my school loan which was $100/month.

Basically the goal was to not add anymore expenses until I was able to increase my income to where I wanted it to be.

At the time I was part-time personal trainer and kickboxing instructor, and I knew that they weren’t going to cut it financially.

Started Working On My Business

So the only thing left for me to do was find a way to start a business to help increase my income.

So back in 2016, I researched ways to make money online, and came across this program called Wealthy Affiliate.

It’s a program that teaches you how to make money online with affiliate marketing.

It was free to get started, and $19 for the first month if you decided to go premium.

So as I did my research into making money online, I made three purchases, two of which changed my life for the better. Those purchases were:

  • MLB The Show (PS3)
  • Cashflow 101
  • Yearly Membership to Wealthy Affiliate

I’m sure you can guess which two purchases made all the difference.

Also, the crazy thing about making these purchases were, these 3 items were the last things I bought before maxing out my credit cards.

Keep in mind that I had about 30k in credit card debt.

The way I looked at it was, I’ll give Wealthy Affiliate a year to see if it works, and if it doesn’t, at least I didn’t use my actual money.

But if it does, I’m sure you can imagine.

Some would say that is being irresponsible, but in order for things to change, you have to be willing to do some drastic stuff.

So I made my first sale in 6 months, and from there, I knew financial freedom was possible.

Learning How To Manage Money

I was able to build a six figure business in just 27 months. But making money was only half the equation to creating financial freedom.

Learning how to manage it was the other half. I had to learn how to budget my money so that I knew where my money was going.

Understand the importance of allocation, and making your money work hard for you instead of you having to work hard for it.

You see, one of the biggest reasons why so many people struggle with money today is not because they don’t have enough of it.

It’s due to the fact that we’re so bad at managing it.

People talk about if only they were able to make a little bit more money, it would go a long way to helping them have better control of their finances.

But studies have shown that the more money people make, the more they spend it. So money isn’t the issue, it’s money management.

Quitting My Job

Once I started to see that the money I was making coming in consistently, I knew it was time to make a change.

Quitting my job allowed me to have more time to build my business even more.

For me, I didn’t care how much a job was willing to pay me, the most valuable asset for me was time.

Because that is something you can never get back. Plus I just hated the idea of having to work for someone.

So I was able to retire myself from the 9 to 5, and work online full time.

How You Can Get Out Too


I always talk about the difference between wealthy people and everyone else is mindset. You have to believe that you can change your financial situation.

Too many times people look at wealthy people and think they’re wealthy because of luck or some inheritance.

But in reality, they believed they could achieve such wealth.

So I would encourage you to work on changing your mindset about building wealth. Read books, watch videos about creating wealth.

There is so much free information out there for you to consume. 

Create A Budget

Earlier I mentioned that in order to get out of the rat race, your passive income needs to exceed your expenses.

Well in order to make that happen, you first need to know what your expenses are.

One of the biggest reasons why people are broke is due to the fact that people tend to spend more money than they make.

Managing your money like this is no way to build wealth. You have to understand where your money is going.

And it starts by creating a budget.

So the first thing you want to do is figure out how much it costs to maintain your lifestyle each month.

I would also suggest cutting out any expenses deemed unnecessary.

Once you’ve done that, you now know what it will take to finally get out of the rat race.

Make The Move From Employee To Business Owner

If you ever plan to get out of the rat race, you need to figure out how to create some passive income. Income that is making money even while you sleep.

Because currently you are working a job where most, if not all of your income is earned actively.

So the best way to create passive income is by creating a business. So what kind of business should you start that creates passive income? Some ideas are:

  • Rental properties
  • Vending machines
  • Dividend stocks
  • Ebooks
  • Laundromat

These are just some of the ways in which you could create passive income.

I’m sure you’re thinking to yourself, many of these ways require a lot of money and hard work.

Although some of them do, there are ways in which you can get it done without having to spend money.

However, they will require a lot of your time. In life, if you don’t have the money, you must sacrifice time.

If you don’t have the time, then you must sacrifice money. If you’re like me, then money is probably going to be an issue.

Therefore time is your only option. Now without getting into how you can use your time to make money on the ideas I listed above.

I’m just gonna get into my top recommendation for creating passive income. It doesn’t require too much money, but it does require your time. 

My Recommendation

So my recommendation for making passive income is Affiliate Marketing.

The reason I recommend it is because it’s how I got started without having to spend a bunch of money.

Affiliate marketing is great for those new to making money online, to get started in building a business.

Also, it’s the future of where marketing is going. It can be done right from your home and doesn’t require you to own any products.

So if you’re interested in learning more about it, I would recommend you click here to see how I was able to create a six figure business in just 27 months.

About the author

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