It’s not that the middle-class don’t aspire or dream of getting wealthy. But just dreams or wishes are not enough. It takes certain habits, traits, and daily activities to get wealthy…and most importantly, it takes a lot of time.
Our generation of middle-class people is good at earning money and they are even better at spending money. But most of them have no clue how to save, invest, and compound money.
It’s more important for them to buy the latest smartphone, smartwatch, TV, smart speaker, and car on credit. Heck, most of the things they buy are depreciating assets. Slowly they find themselves falling into the debt trap and end up living paycheck to paycheck.
Then there is a demon called the Lifestyle Creep that eats away all the incremental income. As your income grows, so do your expenses.
Middle-class people have this habit of raising their living standards at the same pace or faster than their income growth. The increased expenses leave them little money at the end of the month to save and invest for the long-term.
The Saver-Investors are prudent with their money. They don’t fall victim to the shady tricks of salespeople in the insurance, banking, and financial services sectors. They read research, and talk to experts to be able to make the right decisions.
There you have it — the reason why most of us never rise above the middle-class.
But it’s never too late to start saving your way to wealth. Start by getting rid of debt, diversifying your sources of income, and investing diligently month-after-month for at least a decade.