Let's face it being in the middle class sucks
while it doesn't necessarily imply financial struggle or suffering
being in the prominent middle class positions you in an unsafe edge
as much as you're earning a good salary skyrocketing living expenses often
gobble it all up making it difficult to save invest and
get ahead financially the middle class is a false solution of
financial security if you're not careful you might never find your way out and
this is why in this video i will share with you
7 signs you'll be stuck in the middle class forever
and if you're new to the channel then hit the subscribe button below for more
life changing content sign number one you don't own
the car you drive the number one sign that you'll be stuck in the middle class
forever is that you don't own the car that you drive
while the typical middle classer definitely owns a car or two
it's unfortunate that most of them probably don't have full equity in these
cars what does this mean well you take pride
in your ability to move around in a nice shining automobile
you haven't paid the full amount on that car and since you purchased a car on a
loan the lender can repossess it if you default on payment and it
could get worse defaulting on your car loans is also
bound to hurt your credit score hence putting you in a bad box with lenders
good luck finding a creditor willing to lend you money at good interest rates
with a derogatory credit report and as you're probably aware
debt can be a very useful tool for building wealth specifically
when used to purchase appreciating assets or expand
an already thriving business on top of that the crippling
interest rates that accompany auto loans are unfit for your paycheck
throughout 36 to 84 months you're bonding yourself to a fixed monthly
payment that goes towards reducing the principal
and paying for the loans interest this is just too much
if you must drive a car go for a slightly used one that's
cheaper hence you can buy cash and at a lower depreciation margin
sign number two you can't cover an unexpected expense
assuming you unexpectedly lost your job would you survive for at least three
months without a salary no then this could be the second
indicator that you'll remain stuck in the middle class forever the thing is
life is full of surprises thus having a foothold in the middle class
isn't a buffer from an unforeseen financial blow
things like unexpected income loss or falling ill can find you standing on the
wrong foot if they do you'll be in serious
financial trouble if you aim to ditch the middle class and
attain true financial independence it's best to have a fund with likukash that
can support you for at least three months
in the financial world this is called an emergency fund if possible
build an emergency fund that can cover your expenses for up to six months if
you didn't have your primary income source
so why is this important well your emergency fund provides a financial
umbrella in case of a rainy day since we have things that we hardly
include in our budget your emergency fund caters to those
this eliminates the need for borrowing money in case you become too old to work
or in case of an unexpected home repair and
honestly if you have to take debt for every
financial bump you encounter you're only lowering your financial
stakes debt only chips away at your net worth and makes it hard for you to save
money on top of that saving for an emergency
gives you peace of mind and saves you from the stresses that most middle class
people go through no one wants to live paycheck to
paycheck saddled with fear of what might happen if they became
too ill to go to work if you're yet to set up an emergency fund don't fret
start by analyzing your current expenses then identify
anything you need to remove it could be that expensive cable television
subscription monthly magazine subscriptions or even
access grocery bills also getting an extra income source is another smart way
of quickly setting up an emergency fund this could be freelancing
gigs or driving for uber for three hours every evening
besides what you do with the extra hours after work is a determining factor
of whether you'll escape the middle class rut or not
sign number three you stop learning after college the third sign that you
remain trapped in the middle class is that you stopped learning after college
it's been years since you set foot in a learning environment whether physical
or virtual even worse you can't recall the last time you read something that
wasn't a billboard a tv advertisement or a social media caption oh man your brain
probably grew cobwebs and soon your bank account might follow suit if
there's one thing i came to learn about financially successful individuals
is that these people never stop learning actually you could be in a room with a
millionaire without knowing because usually
there's the quiet bubble floating in a sea of noise
as other people talk upper class individuals prefer to watch and learn
they read books attend networking events and watch edutaining shows
similarly feeding your brain with helpful information can be the key that
will open financial doors for you learning exposes your mind to a new
world of possibilities including better income opportunities or refined
ways of thinking that act as a stepping stone for a better you
for example i recently came across a money master class focusing on debt
reconstruction and how to pay off loans faster this
master class teaches you the different methods
of getting rid of debt it even helps you set your debt repayment goals using
spreadsheets and to set repayment schedules that
align with your goals outrightly anyone who paid for this masterclass left a
better financial planner and will probably clear their debts
faster than someone going it alone see how important learning is
and besides learning sharpens your confidence levels being in the loop of
things instills a sense of self-confidence
that could serve as a conversation setter if you ever find yourself in a
room of smart and successful fellows sign number four
you buy things to impress others another factor that diminishes your
dream of decamping the middle class is that you buy
things to impress others more so in an era that's obsessed with social media
likes you crave the attention that comes with it
you'd kill for a cool instagram background and for a picture
in a five-star hotel while your peers are buying stocks in real estate you're
jockeying to buy the latest mercedes model for
the gram if this description fits you you're setting yourself
up for some serious trouble maybe being a middle class learner
you're basking in the high delight of not being church most poor
but you know what holding this people-pleaser mentality might as well
make you poor the thing is buying things to impress
others only wastes your money chances are you're buying things you
don't need for the sole purpose of feeding your external image
this habit is likely to birth a lifestyle that's more expensive than
your income can support and you know what comes next right debt
since your salary isn't enough to fund the side shows your next
option is to bother your friends with constant money demands
you'll soon need to borrow money to fuel your fuel-hogging 100 000
car or to pay exorbitant rent for the million dollar neighborhood you live in
with an economy that isn't very kind to low-income earners you'll slowly start
gravitating towards bankruptcy and what's in it for you nothing if
you're lucky you might acquire a larger flock of admirers among your friends and
on social media but that's about it the expensive liquor you're buying to
impress your friends will probably turn into a lick of shame
once you're financially deflated so if i were you i would stop the stage
lifestyle and start investing or saving your money
like rich people adopt a focused mindset that doesn't require you to please
anyone and instead keep your eyes fixed on your financial
goals sign number five you think a salary is
the only way to make money to be honest the most annoying aspect
about middle classes is that they cast all their hopes on their careers
most of them think that a job is the only effective way to build wealth which
is far from the truth the truth is fixating your mind on that monthly
paycheck will make it difficult to break away from the middle class not
that there's anything wrong with salary jobs but the thing is
climbing the financial ladder requires more than that actually one common
factor amongst financially independent people is that
they don't work for anyone largely their income emerges from their
businesses or from the assets that they own
luck at elon musk jeff bezos or warren buffett they all gain wealth from
starting their own companies or from adopting smart
investment strategies similarly you can use your paycheck to finance your dream
of running a successful company or owning high value stocks you don't even
have to quit your job especially if it earns you good money
all you have to do is carve other ways of attracting passive income while you
sleep suppose you're a financial guru for
instance in that case you could create a 50
master class that teaches people how to budget save more
and employ investment strategies that deliver great results
for every 10 people that buy your course you earn an extra 500
without sweating it by investing this extra money towards the stock market or
increasing your retirement savings you're getting closer to attaining
total financial freedom sign number six you save money but you don't invest
there's too much hype around saving money but very little around investing
it if you're the type of person that
believes such hypes you might be stuck in the middle class forever
while saving money is a great financial habit it won't make you wealthy
it is only through investing that your money can grow and even double if you
invest it long enough look at it this way saving money is like
burying a seed under a heap of sand while investing money
is an equivalent of planting a seed underneath fertile land
a few months from now you'll retrieve the seed that was buried under sand
exactly as it was but the one that was planted will have
blossomed and produced more seeds similarly money
grows when invested well say in real estate retirement accounts
or high interest money market funds on the other
hand saving exposes your money to inflation meaning
that it loses its value over time this is why a 10 bill can buy less than
it could five years ago therefore it's wiser to save money to
invest it later then leave it idling around sign number
seven you got your financial advice from your parents
do you still use the financial advice you got from your parents stop
but wait i'm not implying that your parents aren't financially gifted far
from it it's just that from an economic standpoint we're in a perpetual
evolution with no end game in sight and a block of the financial advice that
dole out is probably impractical in the current economy
rarely will financial advice span more than a decade unless
it's the usual banter about saving and avoiding debt
as an investor you now have more varied options compared to what your parents
had there are cryptocurrencies robo
investors and a wealth of mutual funds at your disposal
besides living patterns have transformed too and expenses such as home buying
aren't as cheap anymore this variation extends to the workforce
for instance the present generation is more receptive
to a remote working setup and independent contracting
on the other hand your parents probably peaked in a robust job market that had
everything to offer so while your parents will advise
you to bet your life on your nine to five that won't get you anywhere in
today's economy you need to supplement your job with
other income streams my point is you should take anyone's financial
advice with a pinch of salt even your parents before making a
decision first ask yourself the important questions
does their advice align with the life you're trying to create
are you satisfied with your parents personal financial choices
can you live with the consequences of those choices if things don't go as
planned if your answers are yes and you've conducted your own due diligence
and what you're being advised then you can go ahead and make a
decision thanks for watching if you want to go
from the life you have to the life you deserve
then hit the subscribe button now