8 Middle Class Habits That Keep You Poor

This is why the middle class is struggling.




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Chapters

00:00 Start Here
00:51 Not Understanding What The Middle Class Is
02:12 Thinking Your Salary Will Do All The Work
03:26 Viewing Your Salary As Your Income Ceiling
04:30 Working Hard To Make More Money
06:08 Waiting Too Long To Invest
08:38 Interrupting Compound Interest
10:40 Saving For Spending
11:39 Borrowing The Maximum



The middle class is struggling in the United States. When it comes to why, we often place the blame on billionaires, politicians, and corporate America; however, a huge reason the middle class is struggling is because of habits the middle classes possesses that are so normal we don't notice them. In this video, I share 8 middle class habits that are keeping the middle class poor.

1. Not Understanding What The Middle Class Is

To be in he middle class means living an average life and treating yourself on occasion; however, many people think that it is living a life of luxury and can afford anything you want. When people perceive the middle class this way, the end up creating a lifestyle they can't afford.

2. Thinking Your Salary Will Do All The Work

One blessing and curse of being in the middle class is having a comfortable salary that affords you a good quality of life. Oftentimes, when people get these comfortable salaries, they think that they do not need to do things like budget, track their expenses, and set goals. Instead they think that their comfortable salary will do all the work. What then happens is that they create a lifestyle they cannot afford and have no idea why they are struggling financially.

3. Viewing Your Salary As Your Income Ceiling

Another curse of this comfortable salary is that it often traps people into having one stream of income: their paycheck. When people make a comfortable salary, they start viewing their yearly salary as their income ceiling--the maximum they can make in a year. When they view income this way, they increase their income ceiling at a very slow rate. Instead, we should focus on developing other ways like investing or creating passive income to increase our income ceiling.

4. Working Hard To Make More Money

Many middle class people think that the harder you work, the more money you make; however, this is not true. Hard work will allow you to make more money, but only up to a certain point. The reason is because your income is directly tied to your labor and you are limited as a human in how much you can work. Instead, to get to the next level, you must find ways to generate income that is not tied to you working.

5. Waiting Too Long To Invest

A huge mistake middle class people make when it comes to investing is choosing to wait to invest until they are in their 40s or 50s. The problem with this is by then, you have missed your critical years to build your wealth through compound interest. It is important to invest right away, as soon as possible, so you have the maximum time to grow your wealth.

6. Interrupting Compound Interest

Another mistake middle class people make when it comes to investing is being fearful and interrupting compound interest. When you interrupt compound interest and withdraw your investments out of fear, you risk losing a lot of money. It is important to trust the process of investing and hold during both good and bad times.

7. Saving For Spending

When you ask many middle class people why they are saving, the reason is often for some material possession. Many people save money to spend money. This is dangerous because it makes people stagnated in their financial lives. If it important to see the benefits of saving to build wealth so that you make progress financially.

8. Borrowing The Maximum

The final habit that keeps middle class people poor is borrowing the maximum amount of money that it offered by a bank when taking on a loan. Banks aren't looking out for your best interest and oftentimes offer loans people can't actually afford. It is important to look at your own financial situation and decide for yourself how much you can afford.

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