Some people in the middle class think they are rich, because they might make a good salary at a good job.
Maybe they make a six figure income, but what they buy with that money is what keeps them stuck in the middle class.
Instead of buying little inexpensive thingys, the middle class buy LIABILITIES.
Remember I said that a liability is something that costs you?
Well, the middle class buy things like big houses, nice cars, vacations, and pay for them on credit that they pay for every month. Each month it’s a new thing, but it just adds a little bit to the monthly bills or expenses.
For example, let’s say someone in the middle class makes $15,000. They pay their monthly expenses like the mortgage (or rent on a fancy apartment) and food and lifestyle with $7000, but then a car costs 7000 dollars down and a few hundred a month.
Then a watch that costs a little bit per month, a vacation that costs a little bit per month, etc. etc. Until they are living on the credit cards that they pay a part of every month.
After a while, their monthly debts catch up to their monthly income, and then they are trapped with what I’ve heard called
“Golden shackles”.
They keep buying LIABILITIES that cost them every month, and then they are trapped by the very things they bought to make them happy.
Now, they are stressed out because they HAVE to make more money next year for the kids schools, or the next vacation, or whatever.
And they put THOSE liabilities on the credit card.
The poor and the middle class get trapped because they also get into a situation where the only way they make money is by trading their TIME for it.
Either their body or their knowledge get traded for the money they make, and there are only 24 hours in a day.
Whether you make $10 an hour, or $1000 an hour, you still have to trade that hour for it. A fast food worker still has to serve food, a dentist still has to see patients.
This is when the 2nd job comes into play. It’s a short-term band-aid to a long-term problem, because there are only so many hours in the day.
Often people with jobs end up being workaholics, waking up just to go to work and pay bills. The added money isn't a solution, just a bigger way to be trapped.
A lot of people think that education and knowledge are the solution to any problem, but they are mistaken.
Education and knowledge must be applied.
“The only difference between what you have and what you want is applied knowledge.”
First you have to gain the knowledge, then apply it.
After you finished reading this, you'll be prompted to take action, and visit a website for more education and knowledge. I hope you choose to take the action and apply what you learn.
For example, earning more money isn't always the solution. I want you to know that you can make a lot of money, but still be a poor person because of how you spend it.
It's not what you make, but HOW you make it, and what you do with it after wards.
But here’s the critical difference for the wealthy:
The Wealthy do something completely different.