5 Middle Class Habits Keeping You Broke
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When you’re middle class or lower class, there might be less wiggle room in your budget for error. In which case, it might not take much to throw off your finances.
With that being said, here are five things that can potentially keep them stuck.
1. Thinking that everyone is broke
I bring this up because whenever I give advice on how to save or build an emergency fund, or I watch other videos about this, there’s always that 5% or 10% who will jump in the comment section and say things like, “This is pointless, nobody has money to save.”
Of course, this is not true.
The truth is, there are people with room in their budget to cut back and save – while still enjoying the things they like in moderation.
Yes, we’re dealing with inflation. And yes, you can only do what you can do. However, thinking that everyone is broke keeps some people in a cycle of complacency. (Related: Get Your MONEY MINDSET BULLET JOURNAL and stop feeling like you can’t get ahead).
When you perceive hardship as the norm, you might convince yourself that saving money is unattainable and you might not even try.
Now, this isn’t to say that it isn’t hard to build a savings account – because it can be. Even so, the reality is that many middle-class individuals have successfully saved something through careful budgeting, disciplined spending, and even supplementing their income.
You can only do what your circumstances allow, and that’s understandable. But changing how you think can help you escape constant financial struggle and start making small improvements.
2. Worrying too much about looking cheap or broke
I like to read the comment sections on forums to see what people are thinking. And one thing that I’ve come across is people admitting that they’ve gotten themselves into hot water because they didn’t want to appear cheap or broke.
In other words, even though they knew they couldn’t afford to do or buy something, they did it anyway because they didn’t want people to know that they were cash-strapped.
Apparently, a lot of people think this way.
The best tip I can give for coping with this is to embrace loud budgeting. If you’re not familiar with this, loud budgeting is the concept of being more transparent about what you’re able to do and what you’re not able to do.
It’s not TMI or telling the nitty-gritty details about your financial life. Instead, it’s about being open and honest about not spending on things that don’t fit into your budget or align with your financial goals.
So instead of being ashamed of what you can’t do or what you choose not to do, you embrace it loudly and proudly.
3. Following your passion
We’ve probably all heard the statement, “Do what you love,” “follow your passion,” or the classic “If you do what you love, you’ll never work a day in your life.”
While this sounds good in theory, the reality is often quite different.
Some people are fortunate and able to support themselves doing what they love. But for others, following their passion has led to struggle and hardship.
A while ago I came across an article about the habits of people who have money, and there were many interesting points discussed. One thing that stood out to me was that a lot of these individuals don’t always follow their passion as a career path.
The reason?
Simply put, they know that their passion might not provide the income they need or want to care for themselves or their families. So instead, they pursue work that can offer more stability, and reserve their passion for hobbies or side hustles.
This way, they can do what they love without the pressure of relying on it as a primary source of income.
4. Reluctance to monetize skills
Now, I’m not suggesting that you turn every hobby into an income source. Then it wouldn’t be a hobby or a way to relax.
However, if you need extra money and have a skill, using that skill can be a great way to earn more and stay financially stable.
You might only need an extra $200 a week or so, so think about what you like to do, and then brainstorm ways to make money with this. (Related: Download my insider’s tips to making money as a freelance writer and leverage your existing knowledge to make extra money).
For example, maybe you love cleaning and you’re great at it. If so, you might clean a small office a week. If it takes three hours to clean 2000 sq. ft. and you charge $125 per cleaning, that’s an extra $500 a month before taxes.
If you want an extra thousand dollars a month before taxes, you can get two offices. One good thing about this type of business is that supplies are relatively inexpensive and you probably own most of the cleaning products.
5. Ignoring financial warning signs
Ignoring financial warning signs is like being on a road trip and noticing that you’re low on gas or that your engine’s making strange noises. These are signs that something’s wrong, yet you do nothing and end up stranded.
The same can apply when managing your money. For example, you might notice your credit card balance creeping up, and paying the minimum gets harder each month.
You have a choice: Either ignore this sign and continue to accumulate debt. Or, you can rethink your credit card use and take action (stop using it for frivolous purchases and maybe freeze the account to avoid adding to your debt).
It’s important to supplement or think about solutions as soon as you recognize warning signs. Waiting until you’re drowning only makes it harder to stay afloat.