Despite the talk that the middle-class is dying, they still account for the majority of the socioeconomic spectrum and decisions. Unluckily, a great number of the middle class is blinded by the idea of financial security that they can’t clearly distinguish assets from liability.
According to the famous Rich Dad, Poor Dad author Robert Kiyosaki, “Assets owned by individuals are markers that distinguish the different classes.” With this statement, Kiyosaki is basically saying that the things that a person owns are the basis of whether he is rich or poor.
Here are the 8 things the middle-class thinks are assets but are actually not:
The more the money, the worst the character
The famous proverb that “money is the root of all evil” is something that binds and enslaves the middle class. Some individuals believe that having money relates to greed, oppression, and corruption among other vices. However, it’s not truly the case. Money can also bring about positivity and change the lives of many individuals for generations.
Wealth can reveal the true colors of an individual. If a person is greedy before even having a vast amount of wealth, he will be greedier. On the contrary, if a person is generous even without having much money, he will be even more generous.
Working jobs that you don’t like as security to financial freedom
Unknowingly, people invest too much of their time and effort in jobs that do not bring out the best in them holding onto the hopes that if they stick out to the job, they will eventually come across the breakthrough they have been waiting for. However, although having such a story of hardship to success is something we often idealize, sometimes, it’s just a hoax that we try to feed our minds.
While most middle class believes that investing in their “tolerable” career will make them a millionaire, people in the upper ladder of the social class think otherwise— they have a different ideology from the middle class. Instead of investing their everything in jobs that they don’t truly want, high-class individuals would rather pursue the job that they want. This is what makes them stand out among the crowd.
Hadass Weiss, the author of We Have Never Been Middle Class: How Social Mobility Misleads Us believes that rich people become richer because of their positive mindset. They believe that a person can earn tremendous benefits from investing in hobbies, talents, and the things they like to do if a person has sufficient financial knowledge, and a meticulous master plan.
Securing a 9-5 job isn’t the way to earn millions, but a poor mindset that will keep a person an employee forever. Avoid seeing jobs that offer the greatest salary potential but focus on the work that brings you more fulfillment potential. And once you find it, invest your soul and heart into your craft to become among the most competent people in your field.
Run after the things you love doing, the success will follow. Nothing will be impossible for you once you free yourself from the chains of employment slavery.
You spend first before investing
It’s common to see people in the middle-class cash out hundreds of dollars a month to pay for their car loans. But if you’ve come to think of it, if these funds were invested in stocks, bonds, and other investment pools, it would earn them dividends that could buy them a car while leaving them some savings.
Correctly managing funds isn’t as easy as many people think. It takes strict discipline and sacrifice to manage funds and stick to a budget. Refrain from spending the very moment you receive your salary, invest first. The way you perceive spending and investing will play a big role in making it up to the ladder of success.
Your house is a big liability
People nowadays treat expensive houses as a badge of success and wealth. Although this holds some truth for the ultra-rich, owning a house can be a liability for the middle class.
Resilient entrepreneurs have maintained a discipline of categorizing the things they own into liabilities and assets. For them, things like cars, television, and houses fall into the category of liabilities because they don’t bring income.
As soon as you master how to manage your finances, you’re in a better position to avoid the blunders that numerous middle class fall into.
Getting rich is a matter of fate and not a decision
Most middle classes relate wealth to formal education, profession, skills, and homeownership, but this mindset won’t help a person get anywhere in the corporate world. Rather, it would make a person fixed and unmoving from the middle-class kind of life.
Thinking that it is fate that makes a person rich is too trivial, it is you who will decide you’re fate. Once you embrace the fact that you are the one responsible for your financial status in life, you’re a step closer to achieving financial freedom.
Saving instead of investing
The middle class extremely believes in saving since they are more comfortable risking less, rather than risking more in investing. Yet, unlike what the majority of the middle class think, saving isn’t the ultimate goal of wealth. Unfortunately, much middle class would rather let their money sit comfortably on banks, which only lessens their purchasing power over time.
The idea of saving is a far-fetched strategy towards making any wealth. Since money is a dynamic medium of exchange of commodities, it has circulating tendencies. Thus, it shouldn’t be hoarded but multiplied. Multiplying money, instead of saving, is the true secret to wealth.
Are white-collar jobs an ideal venture?
Surely, a 9-5 job can provide a pretty comfortable job, but it’s undeniably not the most feasible way to get wealthy. While the middle class complies with their backbreaking job to climb up the ladder, the rich make it their goal to own one.
People in the middle class believe that there’s no other way to financial freedom unless they get employed, having a paycheck every month. They tend to desire to establish a good career since it was something that schools and universities fed their mind.
On the other hand, wealthy people know their way to financial treasures. They make it their goal to build up a business and eventually create job posts for the middle class.
Some rigid thinking of some middle class is what keeps them stagnant and unable to ascend to the higher economic ladder. If you’re among these middle classes, learn how to get out of your comfort zone, and be willing to take even a bit of risk. This is the first step towards wealth beyond imagination.
