The problem which is associated with the middle-class originates from what they think about rich and wealthy people. The middle class always perceives themselves as rich and because of that they put themselves in an imaginary contest with the rich, a competition that the rich are totally clueless about. Middle-class earners find themselves drawn into this pointless competition due to fundamental misconceptions about wealthy lifestyles.
Surprisingly, the foundation for this competitiveness is non-existent among the wealthy. The middle class fixates on behaviors and status symbols that the wealthy rarely consider important. It's a perfect irony, like chasing a shadow that keeps moving further away. It is a perfect irony, such as trying to catch a shadow that is continually moving away. As a result, the middle class will never be able to become rich no matter how much they work because they are on different paths.
There are several critical misunderstandings about wealth that the middle class holds. These misconceptions are the source of their dilemma and brouhaha. Here are these fundamental misunderstandings:
1. Working harder equals more money
Hard work has its perks, however, it does not necessarily mean that a person will get rich just by being a hard worker. The middle class is of the opinion that wealth is the result of hard work to the extent of "breaking one's back". Nevertheless, this is not the view or habit of the rich. The wealthy understand that making more money requires working smarter, not harder.
To earn more, one must excel at the money-making game. Your income directly correlates with your money-making skills. It's not about the hours you put in, but rather how strategically you work. The more skilled you are at making money, the more you will earn. It's all about a person's capabilities in their chosen field. This remains a persistent misunderstanding among the middle class regarding wealth creation.
The middle class often believes that the wealthy don't sleep at night because they're constantly chasing more money. They think they too must sacrifice sleep to catch up in terms of material goods. If it were all about putting in more hours or working harder, garbage collectors would be millionaires.
2. Middle-class earners believe extravagance is the way of the rich
This is where the middle class goes astray, equating wealth with bragging rights. Buying luxury cars, jewelry, and expensive branded clothing doesn't make a wealthy person. This misguided view of the wealthy explains their struggle in catching up with people who aren't even running the same race.
Those who build wealth through financial acumen aren't wasteful. People such as Mark Zuckerberg and Bill Gates do not focus on luxury brands and the reason is that they know it is an improper use of their resources. They invest their money in a wise manner and keep away from the unnecessary expenses because to them, each cent is a step towards creating tangible riches. The middle-class people completely unaware of this reality. Instead, they spend their money in a way to look like they are rich, even on things that the wealthy don't do.
3. Quick riches
The middle class's way of life is to get rich quickly. They think of success as something that happens overnight, and they think of every successful person as having become wealthy overnight. Wealthy people understand that success takes years of persistence and dedication. One of the reasons why most middle-class people would not start a business is because they lack patience and commitment. The rich man of today has a history of multiple failures. After every failure, he recovers, takes a lesson from the mistake, and continues working with the same determination until he gets the result he wants.
There are a lot of talented and capable men and women who fell victim to this get-rich quick mentality and they all died prematurely.
4. Most middle-class doesn't know the difference between assets and liabilities
Buying a car is more appealing to most middle-class wage earners than investing. They believe that when an automobile is no longer in use, it can be resold. However, they were unaware that a car's worth did not increase over time. They believe that owning a car is equivalent to owning an asset. They judge a person's wealth based on the type of car they own.
This is not something with the wealthy. The wealthy are solely concerned with assets that rise in value and are willing to invest in them. The wealthy consider the best place to invest their money and how much a dollar in their wallet can produce over the course of a year. They invest in equities, real estate, and crypto projects that will grow in value.
A car is not an asset but a liability that can only decline in value.
5. Most middle-class think time and money spent on improving one's skills are a waste
This is where most middle-class made huge mistakes. They believe that investing time and money in learning new skills or developing existing ones is a waste of time and money. Wealthy people, on the other hand, understand the necessity of honing one's skills. They understand that applying information increases abilities, which decides the quality of one's work and, of course, higher income. While the middle class grumbles about spending money on books, additional courses, or capacity-building training, the wealthy invest freely. They understand that the more they learn, the more they understand, and the more they understand, the more money they make.
The wealthy have a very different worldview than the middle class, yet the middle class believes they are on the same path in life.
The image used is AI generated.