Middle-class people have many of the same traits that prevent them from ever changing their social status. Which traits are we talking about? You’ll find 17 of them in this article.
They never save
Someone who is middle class has enough money to live on but that’s all. The end of the month comes and they have enough money to pay their bills but never enough to put some money into their savings account. They never save so they never advance financially.
They work for an employer
It’s hard for a person to improve their financial position if they work for an employer. According to the Center for American Progress, “there are 16.5 million self-employed people in the US.” More people need to start working for themselves if they want to leave the middle class behind.
They’re single parents
Single parents have it tough. Single parents who live in countries where governmental aid is available might not live below the poverty line, but they certainly don’t have a lot of spare cash hanging around. Single-parent families find it difficult to leave the middle class.
They have too many expenses
Middle-class people tend to stay in the same financial position their entire lives because they have too many expenses. Their outgoing payments don’t match their income so they’re always playing catch up. The increased price of living doesn’t help and they buy too many things that they don’t need.
Their income is stagnant
We all need to have a payment increase from time to time because the cost of living is always getting more expensive. One common reason why middle-class people can never move up the social ladder is because their income doesn’t increase to match their monthly expenditure.
They’re in debt
Debt makes it almost impossible for a person to leave the middle class. Debt from student loans, backlogged rent or mortgage payments, or unnecessary credit card debt can choke us financially. It’s extremely difficult to pay back all the money and have financial freedom again.
They always pay installments
MoneySense says, “In-house installment payment plans offered by a store may charge high interest rates. Small monthly payments can add up and you may end up paying more than the original purchase price.” A person who always pays via installments will end up spending more money.
They pay rent
If a person can’t afford to put a down payment on a house, they may choose to rent for a time. Living in a rental apartment is cheaper but can work out more expensive in the long run. Renting means that you’re never investing in your own place to live.
They don’t have any investments
If a middle class person doesn’t have any investments, they’ll find it almost impossible to leave this financial group. For a person to advance financially, they need to have some assets, such as stocks, real estate properties, or bonds, to boost their savings.
They didn’t finish college
Having a college degree makes it a lot easier for a person to get a good job that pays well. Without one, a person may struggle to find work and may have to settle for lower-paying jobs. A person who didn’t finish college will always be middle class.
They don’t have a business
Figures from the Washington Post show “nearly 1 in 5 adults — 19 percent — are in the process of founding a business or have done so in the past 3½ years.” A person who doesn’t have their own business will find it very difficult to make more money and leave the middle class.
They didn’t finish high school
Finishing high school is essential for a person to go to college, learn a profession, and get a good job. Without high school studies under your belt, you’ll always be working at places that don’t pay very well, and you might find it difficult to even get a job in the first place.
They don’t go for training
To keep advancing in one’s career, a person needs to go on training days where they can learn the latest advancements in their line of work. Without training, a person can never reach a higher position at work and will always remain a middle-class person.
They have limited additional income
There are a number of benefits that a person can receive from their employer, such as medical insurance, a retirement fund, and paid vacation time. However, these benefits are not enough to change a person’s financial position and help them leave the middle class.
They live alone
“Statistically, it’s around 28% more expensive to live alone than with someone,” says Yahoo. A person who lives alone doesn’t have anyone to share the cost of living with. Living alone can make it very hard for someone to stop being a middle-class person.
People depend on them
A person might make enough money to pay for their own expenses, but if they have many other people relying on them for financial aid, that income won’t be enough. Having to provide financial support for someone who could work but chooses not to is a heavy burden.
They always use credit cards
People who pay for everything with a credit card often find it hard to leave the middle class. They’re always paying for things late and find it very difficult to catch up with their payments. Doing this can ruin a person financially. You should pay upfront whenever you can.