Number 4:
They waste massive amounts of money trying to impress others.
The“ keeping up with the Joneses’” cost the middleclass billions a year. Constantly upgrading their clothes, watches, cars, and homes to impress people who don’ t even care.
Remember this point:“ Dance like no one is watching. They aren’ t.” This is very true. They just don’ t care. They have their own lives and problems to worry about. They don’ t care what kind of car you drive or where you live. Stop trying to impress others. It is a waste of time and money.
Number 5: Buying toys first and assets second.
The middleclass has it backwards. They say this to themselves.“ I will buy all the things I want first, and then I will start saving and investing.” It doesn’ t work. By the time they buy the clothes, watches, cars, and houses, they are living paycheck to paycheck. There is no money left over to save and invest.
The people who end up wealthy buy assets first, and with the profit from these assets, they buy the toys.
I have never made a payment on my boat, Ferrari or beach house— my assets pay for them.
much, but you are still living paycheck to paycheck. Where did that other money go? Lifestyle creep.
When you got your first raise, you decided to buy your first home and took on a mortgage way higher than your apartment rent. You got your second raise and now you needed a nicer car, maybe a BMW.
You got your third raise and now your kids are not in the right school district, so you must buy a more expensive home in a nicer subdivision.
Are you starting to see what’ s happening? Every time you get more money, you are spending it to improve your lifestyle leaving you continually living paycheck to paycheck.
These six things combine to keep the middleclass in the middleclass. It is a sad situation, but it can be solved fairly easily by stopping the madness.
Be aware, I did every one of these things at one time or another and I turned my life around very quickly by stopping. You can too.
Number 6: They fall victim to lifestyle creep.
Do you remember in your 20s and 30s when you made very little money and lived paycheck to paycheck? Of course. You didn’ t make much money, so it makes sense.
However, it is 20 years later, and you are making 3 times as
MEET STEVE DAVIS CEO and Lead Consultant Host of the TWA Real Estate Investor Radio Show
You can find out more about Steve and Total Wealth Academy at www. totalwealthacademy. com. They offer a free sample class for you to try out. You can also find Steve’ s radio show schedule and podcast past shows. If you have a specific question for Steve, you can email him at steve @ totalwealthacademy. com.
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