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Financial Freedom- How Do I Escape the Hamster Wheel?

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How Do I Escape the Hamster Wheel? Financial freedom and independence – these colourful terms mean something different for everyone. Some feel comfortable with a minimalist way of life; others need fast sports cars and pompous real estate to feel “financially free”. However, the basic concept of financial freedom is always the same: Everyone who strives for financial freedom must take their finances and the associated risks into their own hands and decide how they can build their sources of income independently of institutions, the state and companies.


So far, only a few private individuals have followed a strategy that slowly leads them to financial freedom. Most people spend what they earn, leaving no room for growing passive income streams. A decade-long modest lifestyle, which in the end may not be profitable, is also not necessarily desirable for many. But what can you do to become financially free without severely restricting consumption?

Financial Freedom- How Do I Escape the Hamster Wheel?


Basically, there are different ways of escaping the “hamster wheel” and building your financial freedom. Three components are decisive:

  • The basis is to earn money.
  • Part of what you earn must then be saved.
  • The money saved must then be invested profitably.

The aim is to be able to live from passive cash flows from investments. Once you’ve done that, the world is open to you. For example, you can explore the world, pursue your hobbies or, of course, continue your professional activity. The latter, of course, without tormenting yourself to work, but having fun at work and the freedom to go when it no longer suits you.

If we explain that in a more extended way;

1 | EARN MONEY

The escape from the “financial hamster wheel” basically begins with generating money. Active work usually plays a significant role – but you have to invest time here every day and, above all, if you work as an employee, this goes hand in hand with enormously limited scope for action. You also need constant sources of income, but as an employee, you run the risk of being dismissed. Since employees have only limited room for manoeuvre, the salaried employment relationship, in particular, is referred to as “unfree”. One way out of this “financial hamster wheel” is passive income. Passive income describes cash flows that are not generated from active work but are earned independently of the time invested. Such cash flows can be built up, for example, by publishing a book and steadily making money through sales. Another, and probably better, type of passive income is portfolio income. A fortune can be built up through investments, for example in real estate, index funds or stocks. In the increasingly digitized world, the various financial service providers are also constantly adapting their offers for private investors. There are numerous ways to invest your money online today. Self-determined investment methods are becoming more and more popular. Investors can get information online and, after their consideration, generate different passive cash flows, i.e. positive cash flows, e.g. from interest.

2 | SAVE MONEY

In the second step towards financial freedom, you have to save part of the money you have earned. To do this, it is reasonable to look at your expenses and differentiate between necessary costs and consumer spending. Those who cut expenses can invest more in their income streams and get better results faster. Also, you should be aware of all your assets.

3 | INVEST MONEY

After you have determined your financial possibilities and have been able to save money, it is essential to invest. To do this, you should find out about the possible combinations of the various investments. Interest on money deposits or dividends that are generated through the use of money contributes significantly to financial freedom. As already shown a little further above, there are different ways to create passive income. Nowadays, a visit to a bank is no longer necessary. Nowadays, private investors invest in stocks, funds, ETFs or real estate projects using crowd investing via the Internet. The opportunities to make investment decisions freely and without being influenced have increased massively over the past two decades.


Besides, there are fewer classic investment opportunities. They refer, for example, to training and further education to increase personal “human capital”. Investing in these areas can be valuable for the future and make a useful contribution to financial independence. Without financial education, the path to financial freedom will be a wrong turn with an uncertain outcome. On the other side, you don’t have to be a finance expert to achieve your financial goals in the long term.

How Do I Escape the Hamster Wheel?

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