In a world, we find three types of people rich, poor and middle class. Out of these three middle-class people is one who suffers badly due to many reasons. In my childhood, my father used to say “We are from middle class family, we cannot afford it” at that time I could not able to appreciate the meaning of this sentence, but once I started earning a money I could realize the meaning of this sentence.
So, today’s talk is on middle-class people. If you are from middle-class family and always under stress, this article is for you. In this article, I will share various problems of middle class people. I will also provide remedies for the same.
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Why middle class people always remain under pressure?
A middle class people always remain under pressure. There could be multiple reasons for this pressure like Inflation, taxes, social responsibilities, financial responsibilities, low-income level etc. However, most common reason is financial problem.
As per my opinion, a middle class man increases his financial responsibility but he/she never tries to find additional income sources. As income is limited and spending is unlimited it will create a problem. It is like if you try to wear trouser with a size of 32 inchs, on your waste of 34 inchs one day your trouser will torn off. I would like to justify my opinion with evidence and explanation.
- Lack of financial knowledge
A middle class people don’t care about financial literacy. Even our education system does not emphasise much on financial education. No school is ready to teach how to manage finance and how to grow our money. Middle class people don’t even try to get financial knowledge.
I have heard many middle-class people saying that “Money is required to generate more money and without money I am unable to do anything”. So, my question to them is if it is the case how kids from middle-class family or poor family have become rich? We have many examples of middle-class people like Dhirubhai Ambani, Narayan Murthy, Steve Jobs, Bill Gates etc. who turn billionaire in their life with no or little money.
As per me it is not all about money it is about financial knowledge. A middle class people never learn how to make money from money? They keep their money in the bank or they purchase insurance policy thinking that they will have big corpus at the time of retirement. However, it is known fact that saving bank account or life insurance policy can’t beat even inflation.
- Increase in Spending without Increasing Income
A middle class people always purchase liabilities thinking it is an asset. They try to find out ways of increasing spending without increasing actual income. In order to fulfill the unrealistic dream of purchasing a big home, a car they take a loan and remain under pressure of EMI.
When it comes to increasing income a middle class person thinks of getting a new job with higher salary or promotion. They never think of doing business or finding additional income sources.
- Risk Adverse
A middle class person is risk adverse. He/she is not ready to take a risk in life. They watch Hindi movies but don’t understand dialog “कुछ पाने के लिए कुछ खोना पड़ता है”. They always invest their money in risk adverse options like fixed deposit, saving bank account and life insurance policy. They never explore other investment options like a stock market, mutual funds etc.
- No desire for learning
I have observed that middle class man always thinks that he knows everything. He has no desire to learn new things. On the other if you talk with rich people you will realize that they are ready to listen to you and they try to learn something from you. No desire for learning a new thing is another reason why a middle class person remains under pressure.
- Way of Thinking
Apart from house and money a middle-class man also inherits thought process from elders. A middle class person is being taught to be good employees. A process flow from beginning of our childhood is
Go to school –> Get good grades/results –> Get a good “JOB” –> Work hard –> Maintain good credit
We never understand that it is not your boss’ / employers job to make you rich. Their job is to give you a pay check . . . for work you have done & nothing more. You have to decide what you want to do with this money. You need to change your way of thinking. You need to come out from job mentality to business mentality.
- Ashamed of Small Work
I personally feel that a middle-class person is ashamed of doing small work. I would like to share one example of my friend. He recently lost his job, I asked him to start own business of selling small home based stuff. He refused by saying that selling stuff is a small job. I will be embarrassed and will not able to sell things properly.
Similar to my friend all middle class people are in the same boat they don’t want to become rich by selling anything. However, all rich people have become rich by selling products or services. Relaince, Tata, Vodafone, Airtel or Patanjali of baba ramdev all are earning money by selling product or services. But, middle class people are afraid of selling product or services as they feel ashamed of small work.
- No Additional Work
A middle class people are not interested in doing additional work. They are happy with 9 to 5 Job and limited income source. They remain satisfied and never move ahead in life. They see dreams but never try to fulfill it.
- Small Vision
A vision plays an important role in life. A middle class people suffer from No or small vision syndrome. They don’t plan things and they don’t know what to do next in life. They think of salary rise and promotion but never think of starting own business or making an extra source of income. If you want to reduce pressure in life you have to think big and act on it.
- Additional Reasons
In addition to above few other reasons makes middle class person life miserable.
- Increase in Tax burden
- Increase in Medical Cost
- Black Money
- Social Responsibility
- Work Pressure
Due to the reason mentioned above, middle class people remains under pressure and can’t make progress in their life. So, what can be done to overcome this situation?
How to overcome this situation?
I was also from middle class family. However, with grace of god and blessing of elders, I could able to surpass this class by establishing multiple source of income. So, I will be sharing proven tips which I have already tried and got success.
- First is you should increase your financial knowledge. There are multiple ways to do that. You can gain knowledge by reading books, joining course or by reading blogs.
- Plan for future by doing financial planning. If you have any query about financial planning refer to financial experts or planners.
- Come out from Job mentality and develop skill and entrepreneur attitude.
- Increase your source of income remember “Your paycheck can not make your rich”. In order to increase your income you can start home based business or part time business.
- Stay Hungry about knowledge. In short ready to learn new things in life.
- Please remember that “There is no substitute of Hard work”
- Increase your investment every month. Invest in good mutual funds or stocks using SIP route.
Friends, I have tried my level best to explain you problem of middle class people and probable solutions. Hope these tips will help you move ahead from the middle class to upper class.
Do share your views in comment section.