Escape The Middle-Class Mindset

Wealthy people have more money than you do; it’s true. However, that’s not because they’re smarter, more talented, or better educated than you are. Wealthy people got that way because they had the privilege of access to the right information. That’s the difference maker. Whether from family and friends, acquaintances and colleagues, or intensive self-study, they learned the secrets to building wealth.

If you’re a woman who was raised in a middle-class family or was taught to strive for the security of middle-class status, there’s little to no chance that your formal education instructed you in the ways of wealth building. Women in America learn all kinds of skills we hope will help us earn more money, but no one teaches us the how-to behind the systematic accumulation of assets. Those of us who don’t grow up around wealth find the concept elusive, and that which is unfamiliar to us generally makes us feel uncomfortable.

If the idea of wealth feels foreign to you – like it belongs to someone else – that’s understandable. In our society, there are relatively few institutions or organizations designed to help you learn about the subject. In fact, much of this information has for decades been the domain of (predominantly white) men. As a woman, you’ve likely been taught to pursue higher education, slowly climb the corporate ladder, and save money to create a life of stability and relative comfort. Unfortunately, diligently following those steps won’t get you the level of financial independence you so deeply desire.

When it comes to wealth, women have to play by a different set of rules, and we can’t rely on the advice we received from our parents or grandparents. Conventional wisdom does not lead to wealth, least of all for women.

Gone are the days when we all aspired only to make it to the middle class. As more and more people realize wealth is available to them, they move beyond what they were once taught was good enough and the best they could hope to achieve.?

Escaping from a middle-class mindset requires you to revamp outmoded beliefs and behaviors. You need to take ownership of the choices that will lead you to personal, professional, and financial success. Settling for life in the middle class won’t give you the financial freedom you desire. You can escape the middle class and build a legacy of wealth when you know what to do.?

Middle-class money myths

Our children are doomed to repeat our mistakes if we don’t confront and debunk the following myths:

? Myth #1: Student loan debt is good debt.

? Myth #2: A corporate career equals financial success.

? Myth #3: The bigger your home, the more wealth you will have.

? Myth #4: Investing in stocks is high risk.

Here’s a quick overview of ways to turn those myths on their heads.

1. Be discriminating and strategic when investing in higher education. Student loan debt is not good debt. Higher education can derail your life, as highlighted in a 2021 Investopedia article, so it shouldn’t be obtained by taking on large amounts of debt. You need to negotiate acceptance offers and consider all sources of education funding.

2. Be enterprising and flexible, and always have multiple streams of income. Identify your unique value in the marketplace so you can create multiple streams of income. You will need to become an evolving expert and to differentiate yourself in the marketplace. This will attract recruiters and employers and create an enterprise that can assist you in writing off your expenses and paying less income tax.

3. Approach the purchase of your first home as an investment property, not as a middle-class status symbol. Women must be discerning about loan terms and acquire assets that generate income, appreciate in value, or both. We must also avoid using our homes as collateral in an attempt to pay off other debt, or to use the money for buying things that don’t appreciate in value. Buying a large, expensive home with a huge mortgage won’t create wealth. However, purchasing real estate as an investment, and unlocking tax-advantages strategies of depreciation and deduction of expenses, is the Wealth Secret that one-percenters – those whose net worth is in the top 1% of the population – use to lower their tax burden.

4. Be an investor, not just a saver. Learn about the financial markets and how to research, analyze, and make sound investment decisions. Savings accounts won’t keep up with inflation. Put the power of great companies to work for you instead. Shift from consuming products to sharing in the profits of iconic brands that can provide you with growth and dividend income.

How do women translate their ambition and achievements into real wealth? The key lies not in earning but in owning. Make this shift from earner to owner so you can invest confidently and successfully.?

This move from middle class to wealth is possible for all women. It simply requires developing a wealth mindset and seizing the opportunity to learn how the financial markets work. It requires access to the secrets the wealthy have for too long kept to themselves.

This work and your success with investing start with changing your attitudes, beliefs, and behaviors – up-leveling your mindset. Investing isn’t just for the rich. Investing is how you get rich.

This is an excerpt from my most recent book, Wealth Secrets: A Woman Guide To Own and Secure Her Future. To learn how to ignite your wealth potential visit https://linktr.ee/wealthyu