improvement pill here i've noticed that every year more and more my childhood friends start
to talk about getting out of the rat race it seems like they finally started to realize that they're
going to be doing the same thing day in and day out for decades just to retire they crave the
freedom to enjoy their life without having to trade in their precious hours just to get by
so today i want to share with you one of the only feasible methods that i know of for escaping now
of course a little disclaimer i'm just some guy on the internet i'm not a financial advisor this
is simply a compilation of observations that i've made studying people who are actually able
to break free from the rat race please do not do anything with your money before conducting
your own research and speaking with your own financial advisor and with that being said
let's begin step number one understand that the system is broken now the first thing you have to
understand is that it is virtually impossible for you to simply work hard reduce your costs
and save your way out of the rat race and this is all because we are currently living in a monetary
system where the cost of living a decent life is rising far faster than wages are the cost of rent
food and basic day-to-day goods are all rising in price far faster than the raises you're going to
get at work there are a wide variety of reasons why this happens the largest one being the fact
that the government is inflating the money supply they're basically adding more dollars into the
system which ultimately reduces the purchasing power of each individual dollar you own which
means that the amount of stuff that your money can buy decreases over time now it's still important
that you cut costs and save your money because of step number two increase your income stream
money pays the bills and puts food on the table but it's also a tool the more money you have
the more money you can potentially make which is why you still need to be spending frugally
and figuring out ways to accumulate more money as you plan your escape if this means that you
need to stay at your current job even though you don't really like it that's fine because right now
in this current economy more important than ever you need that stream of income to keep coming in
and the larger this stream is the better as it will give you more chances to actually make it out
of the rat race now if you're one of my viewers that's in a country where the monthly salary can
be kinda low where it's hard to actually save any money then you need to take advantage of the
internet and find some sort of remote work when i was living in vietnam i met people with college
degrees working typical office jobs only making four to five hundred dollars per month this same
position would have paid at least four to five thousand dollars in the us literally a 10x if
you're in this sort of position you need to think internationally you need to work on your english
or one of the other major languages and take advantage of the internet to make a higher wage
which is why this episode was brought to you with the help of the people over at audible one of the
best ways to work on your english is by listening to books and audible is the perfect place for this
audible allows you to consume content on the go wherever you are just the other week i took an
eight-hour flight and i was able to listen to a book the entire time audible is now giving
members even more with the all-new plus catalog all members will have access to thousands of
select audio books podcasts audible originals guided fitness and meditation programs and much
much more just go to www.audible.com forward slash improvement pill or text improvement pill to 500
500 to get one free audiobook a 30-day free trial and explore the plus catalog today on the plane i
listened to in plain sight by ross colthardt which is an extremely contrarian new book putting forth
a very well done argument for the existence of ufos yes i know it sounds crazy but it's one heck
of an interesting listen now back to the topic at hand learning a language for remote work isn't the
only way to increase your income stream if you have the entrepreneurial spirit within you you
can also try your hand at starting a business now i know a lot of people might say ah but that's too
risky but the truth of the matter is that nowadays it doesn't have to be there are dozens of ways you
can start an online business nowadays with a very minimal budget and sometimes even free you gotta
do your own research though because there's a lot of information out there about how to do this if
you can further increase your income stream and save more money you will ultimately be able to
step number three take asymmetrical bets with some emphasis on the word some of your saved
up money you should take on asymmetrical bets if you ever hope to get out of the rat race quickly
an asymmetrical bet is a bet that has limited downside with almost unlimited upside which
basically means that it's a bet that has a decent chance of paying off extraordinarily high returns
the key part here is a decent chance of paying off you see people who play the lottery are not taking
asymmetrical bets because although they have the chance to win millions their chances of winning
is less than 1 in 10 million an example of a real asymmetrical bet is something like ethereum right
after the march 2020 crash you see ethereum had an established network it was seeing an increase
in adoption at exponentially higher rates and it was also significantly down from its all-time high
i figured that considering all of these things that there was at least a 25 to 50 percent chance
of it recovering and going through another bull market which it ultimately did giving me a roughly
15x return yes the potential gains of investing in ethereum were much lower than winning the lottery
only a 15x compared to a 1 million x but the chances of this bet paying off was literally
hundreds of thousands of times higher 500 000 times higher to be exact if we assumed that
ethereum had a 50 chance of paying off now i know a lot of you are thinking betting on something
like crypto is far too risky first of all you should do at least 10 hours of research for
both sides of the argument before claiming that something is risky or not risky and second of
all if you look into the history of almost every well-known investor warren buffett included most
of them made their initial fortunes taking on an asymmetrical bet with a large percentage of their
net worth risk is part of the game buffett's first major investment was geico the insurance company
he bet 65 percent of his net worth wouldn't you say that's risky and geico eventually did a 100x
over the course of the next 20 years now buffett didn't actually hold on to all of his shares but
this move basically allowed him to retire out of the rat race at the age of 26 with a net worth of
174 thousand dollars which is equivalent to about 1.7 million dollars in today's money the reason
why i'm focusing on asymmetrical bets as a way out of the rat race is because the quote-unquote
safer bets in the world like investing in index funds simply don't give you enough returns for
you to get out of the rat race quickly the s p 500 averages out at around a 10
gain every year assuming that this continues which isn't even a certainty you'd have to stay in the
rat race and bet on this quote unquote safe bet for decades before you could retire so yeah if you
want to retire when you're in your 60s then go for it but if you want to get out the rat race within
the next five to 10 years then asymmetrical bets are one of the only things that i've observed that
could actually get you there now i'm sure many of you are wondering where to even find decent
asymmetrical bets i'll upload another video on the exact thought process and methodology i follow
when searching for these it should come out in a couple of days once it's done i'll link to it down
below now once you've found an asymmetrical bet and you're ready to place your bet it's time to
step number four the three r's risk management rinse and repeat now it's important that you
remember that asymmetrical bets have a high chance of not working out which is why the key here is
risk management meaning that you should never ever bet more than you can afford to lose don't
borrow money don't sell the house don't go all in on a bet because you could be wrong only bet what
you can afford to lose so that you can survive to bet again which is the rinse and repeat part early
in 2020 when the markets crashed i decided to bet big on several cryptocurrencies with about half of
my net worth i knew that if i was right i would be making life-changing money and that i could
essentially retire at the same time i knew that if i was wrong my life would be about the same
i have a business that brings in income so i would just have to work and save up for another year and
try my luck again with the next asymmetrical bet that i find that's why step number two increase
your income stream is so important many of the legendary investors that i've studied have made
two or three terrible bets before finally hitting it big they often preach that survival is key as
it allows you to learn from your mistake recover and try again and when the day comes where you are
finally right about an asymmetrical bet it's time to step number five diversify and chill out if
you ever hit the jackpot with an asymmetrical bat you should have life-changing money on your hands
now depending on how much your initial bet was you might have enough to drop out of the
rat race immediately if you don't that's fine your strategy here is basically to keep working
keep saving and to find the next asymmetrical bet if you are fortunate enough to drop out of
the rat race entirely then you should focus your time on figuring out how to preserve your wealth
as you'll be in a position where making sure your money is well managed will probably make you more
money than your old job would have at this point you should learn how to diversify by spreading out
your wealth into different sectors diversification is mainly used to make sure that you stay wealthy
while asymmetrical bets are mainly used to become wealthy in the first place now to sum things up
the large majority of investors that i've studied were able to escape the rat race by increasing
their income stream so that they can save up more money so that they can make asymmetrical bets with
large percentages of their net worth of course with good risk management and repeating this
multiple times until they hit the jackpot after which they then diversify their wealth i know
all of this sounds risky which is why again you should speak with your financial advisor before
doing anything with your money and if you know of another way to escape the rat race in less than 10
years then i would love to hear about it in the comments down below besides that guys stay tuned