"Why do people constantly feel trapped in the rat race cycle?"
I overheard two of my neighbours and I was interested in the discussion when I heard the question. I stopped and chipped in one reason; the reason is that many individuals want to meet up with the Joneses, they want to meet up with their standards even when they have not yet attained that level, they do this to belong and feel among them not knowing the danger they are bringing upon themselves. This is why they are trapped in the rat race cycle just to make sure they get all they need.
Another reason for this is what I would explain in the hierarchy of needs by Abraham Maslow. Maslow proposed five stages of human needs and they range from the basic needs of humans (physiological) which are 'lower needs' to the last stage called self-actualization termed as the 'higher need'. The lower needs are what people focus primarily on in the rat race cycle and it makes them feel unsatisfied which makes them get trapped in the cycle.
The lower needs are called "deficiency needs" which connotes how individuals are motivated to accomplish them because they feel a sense of lack when they aren't able to achieve their needs even if they have all their basic needs met.
The rat race is a term whereby people constantly strive for material success and wealth. Individuals who get involved in this rat race cycle often find themselves driven by the desire to keep up with the spending of other people, being pressured by society to have the latest gadgets and technology, which makes them strive for more money and possessions. This surely has a negative consequence on an individual's ability to build a financially stable life. The rat race cycle is a vicious one that can be difficult to break free from as it is a system of work that never ends and makes people keep spending thereby leaving them feeling exhausted and unfulfilled.
For instance, a person may feel pressured to buy a bigger house or car just because his or her neighbour bought one, or such an individual may feel like getting a new phone/ upgrading to the latest technology just to meet up with the lifestyles of other people. Another individual may feel like changing their wardrobe because they see their friends put on the latest designers and it keeps them trapped in the rat race cycle which causes them to go into more debt and in the end, they aren't able to get out of it. This eventually derails their progress in their financial planning.
When an individual keeps working and spending money on unnecessary things that don't bring fulfilment or joy to them, it causes stress, anxiety and financial insecurity. Of course, if one can change this pattern, there is the possibility of building a financial life rather than being stuck and trapped in a cycle that never ends. I will provide a few tips to change this.
One major tip that is effective is focusing on your values and priorities. It is necessary to channel your vision on what is most important to you rather than doing what society does. Take a step back and think of what you need most, instead of following the crowd. With this, you will be able to make financial decisions that regulate with your true values and not chase after the latest gadgets, cars, technology and so on.
Another tip is to make a budget that goes well with your values. It means that you get to decide on what your priority should be when it comes to your money. You will be able to know what and how to save for the future, spend on things that bring you joy and fulfilment, avoid impulse purchases and think carefully about your finances. Also, saving for emergencies is required to be able to weather any financial storm that may arise instead of being caught unaware or unexpectedly. This will also help reduce the stress that comes with the rat race cycle.
The last tips are practising gratitude and exercising contentment by appreciating what you have instead of feeling sad over what you don't have. According to research, showing gratitude reduces anxiety/stress and improves mental health. When you are contented, you won't have to focus on what others have which could make you be tempted to involve in excessive spending and ruin your financial life. The act of contentment would allow you to say "no" to things that do not align with your values and priorities but to focus on the essential things that matters to you.