Why do middle class people stay middle class?
Most of the middle classes spend always more than they have actually. They wish to have more liabilities to maintain false status into their relationship and societies as well. They prefer to have more loan in their lives to upgrade their status but it never being achieved.
They never purchase Assets to improve the quality of their lives and to get the financial freedom thereof.
They don’t believe in regular savings of their earnings and investment into the right direction to create a wealth in due course of time. Even they are not determined to improve themselves to change their class/status upwards in the societies to live a happy, peaceful and a comfortable life.
As per my opinion is concern, you believe it or not but more than 90% people of Middle Class don’t accept changes, not able to make any changes to their lives and even they don’t have any goals of their lives to make any changes to upgrade themselves in the societies. They have always hopeless and all sorts of negative thinking/ markings towards their lives. They never use to consider their thoughts in a positive direction/way. They always afraid of loosing something if they will do anything fruitful for them as well as their families.
Why People Stay Middle Class?
They believe in savings v/s growth:
A penny saved is a penny earned, which is true to some extent but there is a limit to what you can save. You can never save more than you make, it’s mathematically not possible. Rich people on the other hand focus more on growth and invest into it. Whether it’s growing themselves by enhancing their skills or by investing into their business.
Middle class loves to show off:
Most middle class people buy vehicles which are a huge drain on their monthly income just because they want to show off. I’ve seen people buying expensive SUVs just to commute to office whereas they could have bought a much cheaper and small vehicle to commute. Not to mention they do buy them on a very high interest loan. Rich on the other hand drive much cheaper vehicles as compared to the money they make, also they are paid for in cash meaning that they wont pay interest on the purchase. Most rich people I know don’t even own a BMW or an Audi even-though they could easily afford it, they would rather prefer to buy a small piece of land with the same amount of money.
Middle class work for money, the rich build assets:
A middle class individual is someone who either works at a regular job or someone who is a small business owners. There are many small business owners as well who are middle class just because they are stuck in non-scalable businesses. On the contrary, employees who are rich are the ones who own stocks of the company they work for and business people who have a scalable business. These category of people don’t work for money, instead they work on their main asset which is business which in turn makes them money.
Lack of ambition:
Most middle class people stay the same because they want to, they are happy being where they are. Although there is nothing wrong with that, this is one of the most common reason why middle class people stay middle class. Most middle class parents want their kids to get good jobs so that they can pay their own bills and rarely anyone think of building wealth.
Middle class is risk averse:
A very few people would like to bet their savings on a business because of the risk of loosing it. Wealthy on the other hand either risk investing irrespective of the result or they have enough money which they could afford to loose.
Middle class lack the “business/entrepreneurial” mindset:
People say that “I cant start a business because I don’t have capital”, but the same ones would not mind spending money on the latest iPhone or buying something they don’t absolutely need. They would loose that amount anyway so why not risk it on doing something entrepreneurial ?
Middle class loves to buy depreciating assets, rich on the other hand hate it:
Most middle class people are excited to buy a new TV, Alexa, iPhone and other fancy stuff which they think would enhance their lifestyle. On the contrary, I know extremely rich people who are millionaires who would refuse to spend even a few thousand rupees on some depreciating item. Rich love to spend their money as well, but they love to buy real estate, rental properties, a small piece of land or a small company.
