Middle Class.  It’s that ground between the working class and the wealthy.  It’s that group of people who generally earn a good income and are well-educated.  They have cars: nice ones.  And ‘not-bad-at-all’ places to call home.

Being a Middle Class citizen in today’s world has plenty of positives.  After all, your finances enable you to afford a fairly great life for you and your family.

Now, let’s get to why you’re really reading this: because you know that it ain’t all that cushy!  There’s a flipside to Middle Class life, and it sort of looks like this:

Let’s help you unlock this mystery by identifying 3 financial habits that you may be engaging in ‘on the regular’ – and compare these with our wealthier friends. 

By taking stock of these habits and changing them for the better, you will see the benefits.

Spending.  This is perhaps the most critical differentiator between the Middle Class and the Wealthy.  This may sound odd to you, because we’re all picturing some super-rich celebrity cruising along in his Lamborghini right?  But don’t forget, most self-made millionaires and billionaires, didn’t begin their lives with mansions and fancy cars.  Most of them were not even Middle Class, they were poor.  However, by being wise with their pennies, they were able to see growth bit by bit.

The quote below explains it well:

“The spending habits of the Middle Class is like that of the Poor…except on steroids.  They often have very good disposable income…they buy expensive toys, have huge loans and fancy-sounding credit cards…The Wealthy do not spend most of their disposable income on consumer durables.  Instead, they put aside their excess income every month to invest in Assets (something you own that either pays you through financial growth or an income stream, or both).”

Cole Patrick
Head of Distribution, Firstline Securities Limited.

“The poor and the Middle-Class work for money.  The rich have money work for them.”

Robert Kiyosaki

Author: Rich Dad, Poor Dad

The fact is that you’re already pretty busy most of the time. That’s why breaking out of habit number one (i.e. poor spending) can create the opportunity for you to have more funds which you can not only save, but invest.  This means that the money you save, earns an interest and grows.  Further, you can compound your interest, thereby earning more money on your initial investment.

We talk about this a lot and in greater detail in other articles, because this is what we do every day. It’s our jam.

Middle Class people of the 21^st century – wake up to the reality that we are not our parents.  Our parents enjoyed the benefits of the oil boom.  They developed mindsets which paid off for them: work hard, get a job, stay in it forever, retire and enjoy your life.

Your biggest mistake is if you develop this same thinking – that this same practice can work well for you.  Gone are the days when one single income can sustain most Middle Class millennials.

If there’s ever a time to get cracking on your own business(es), it is now.  Technology has made it a much more accessible option than decades past. And quite apart from the personal satisfaction of creating something that could support not just yourself but others and for years to come, the more income you have coming to you (coupled with a disciplined financial mind) the better your chances of climbing the “money ladder” and freeing yourself from your present financial circumstances.

But this is important to say: For those of us who don’t have that entrepreneurial drive (and it’s really not a necessity) or realistically cannot make such a move at present – never forget that when you purchase a stock, you are in fact investing in a business. You own part of that company. The stock market is also accessible to you. Take advantage of it.