Escaping the Middle Class Mindset: Come Out of Middle Class Trap, A Path to Financial Prosperity-NewsWiseStories
Escaping the Middle Class Mindset, Come Out of Middle Class Trap, A Path to Financial Prosperity
- Cultivate a Wealth Creation Mindset
- Expand your Financial knowledge
- Financial Goal Setting
- Embrace Challenges
- Diversify your income sources
- Wise Investments
- Develop Entrepreneurial Skills
- Live Below Your Means
- Networking and Building Relationships
- Go for Calculated Risks
- Upskill Yourself Continuously
- Develop a Strong Work Ethics
- Make zero or less Debts
- Give Back with Gratitude
- Invest to create Assets
Introduction:
The middle class term is different in countries and they are very important to any country. But, if I talk in general, middle class people are those who fall between the socio-economically lower and upper class. In income range of middle class people vary based on the location, income, cost of living etc, and it is difficult to give a particular income range to middle class universally..
Only income cannot be a single point of concept to specify a person in middle class.
What is middle class income in India?
Middle class income in India is categorised to three classes:
1. Lower middle class income in India
2. Middle class income in India
3. Upper middle class income in India
- Usually, Indian middle class income ranges from 5 lakhs to 1 crore.
It is considered that family income with 5 lakhs to 15 lakhs are lower middle class income in India or lower middle class income India.
Family income between 15 lakhs to 40 lakhs are middle class income India and 40 lakhs to 1 crore are upper middle class income in India or affluent middle class.
Family with 1.25 lakhs to 5 lakhs are aspiring middle class.
- India also has a poor class, where the family income is below 1.3 lakh rupees annually.
- Upper class people usually earn above 1 crore and that is also categorised to 3 sections:
1. Lower Upper class
2. Middle Upper class
3. Upper Upper class
What is Middle class mindset?
The middle class mentality is characterised by many of the points:
1. If you are too much satisfied if you achieve some what financial stability through some jobs or small scale business
2. If you have fear of taking risks or fear of failing if risk is taken
3. Don't want to achieve true wealth and financial independence
4. Don't want to start a business cause everyone at home will oppose. If you start, then get satisfied with some revenue
5. Stay away from politics. If you enter, become a successful politician
6. Study hard and get a job to settle
7. Don't get on the streets to do any kind of work or jobs
8. Never do anything wrong, and be a gentleman/woman always in front of everyone.
9. Always look for to work in someone else's business and work hard to go to the top positions.
10. Have your own flat or home, so no rent is to be paid.
11. Buy a four wheeler and promote yourself from a two wheeler
12. Spend money on buying liabilities, and many times on credit.
There are many more... Hope you got it..
How to escape from Middle class then?
Escaping from Middle class mindset needs shift in thought process, desires, willingness to embrace the change, continuous learning, upskilling and strategic approach for wealth creation.
In this article, let's explore some steps how to escape from Middle class mindset and how to become rich in India or how can a middle class person become rich in India:
1. Cultivate a Wealth Creation Mindset:
To come out of middle class, you need to change your mindset and work on to have a mindset to create wealth. Understand what is wealth and success and work on that to develop a positive attitude.
2. Expand your Financial knowledge:
Having a financial knowledge or literacy is a key thing to generate wealth. Spend time on learning about investing, personal finance, expenses and businesses. Spend time on reading books, attend seminars or follow the reputed financial experts to gain on insights, processes and financial strategies.
3. Financial Goal Setting:
Without goal, you cannot reach anywhere. Normally if you have to go somewhere and you know the destination, then you definitely find ways to reach there right? Similarly, this is also the same case. You need to establish some goals and then split them in to smaller so that they can be give a short term target date to fulfil. Regularly review those, follow them, and mark as complete when 1 by 1 completes. This will give you motivation and focus to work on next goal.
4. Embrace Challenges:
When you want to develop your mindset, you will find a lot of challenges. Just embrace them and view failures as new opportunities. This is an iterative process like learn, adapt, get feedback and resilient.
5. Diversify your income sources:
Don't rely on a single income source or income stream. This will limit you and you wealth creation potential. Explore different things like have a side business, investing in right mutual funds or stocks, real estate (my preference is commercial or land), create digital products etc.. My suggestion will be for you to build more and more passive income streams. This protects you always not to run out of money in case of any economical impact.
6. Wise Investments:
You need to invest wisely for generating wealth. Learn different investment options, research and analyse properly, look for professional advice if required. Have a diversified investment portfolio aligning with your risk appetite and financial goals.
7. Develop Entrepreneurial Skills:
Entrepreneurship or business creation mindset will make you rich one day. Innovation, problem solving etc are major Entrepreneurship skills. Analyse and assess the market, create a business plan, take calculated risks and work harder and smarter, adapt to changing market conditions, and ready to face challenges.
8. Live Below Your Means:
In the beginning, it is important to manage your finance very carefully to create wealth. Avoid unnecessary expenses, prioritise between needs and wants, and then save and invest to generate significant amount of wealth in long term.
9. Networking and Building Relationships:
Networking and relationship plays a vital role. Surround yourself with like-minded individuals, financial experts, and successful entrepreneurs. You can join professional groups in social media, attend conferences or seminars and participate in different networking events to increase your connections. When you build relationships, it opens doors for collaborations, new opportunities, and valuable insights which accelerates your path to wealth creation.
10. Go for Calculated Risks:
Taking risks does not mean taking blind risks or bets. You have to take calculated risks (informed, researched and analysed risks) to become rich. You assess your net worth, income, and expenses to get the real figure who much you can take risks without impacting your minimum living lifestyle. Come out of your comfort zone and grab the opportunities which have the potential for significant returns.
11. Upskill Yourself Continuously:
You need to learn continuously in this evolving and emerging world. Look for latest technologies or skills on demand in your field of interest. Acquiring a new skill will fetch you a promotion or may land you a new job with at least 20%-100% increase in salary or to build a business.
12. Develop a Strong Work Ethics:
Develop a Strong Work Ethic and proceed with a systematic and disciplined approach to get high quality results. Dedication, determination and persistence can land you in wealth zone.
13. Make zero or less Debts:
People do tend to make purchases different things (necessary and many unnecessary) on credit or debt as soon as they see discount or to show a status in society. If you sacrifice your short-term pleasures, and invest wisely then you will taste your long-term financial stability.
14. Give Back with Gratitude:
When you proceed with financial freedom or independence, give back to your community with gratitude. You can engage in noble causes or community services like volunteering, helping others, charitable donations, mentorship etc..
15. Invest to create Assets:
My personal advice to you would be not to spend too much in building the liabilities rather focus on creating assets. Small example would not to invest in purchasing flats in apartments in your early age. Rather buy plots wherever you are getting. Don't spend too much in purchasing new cars, rather look for public transport or on demand taxi service to save money if you still want to own a car, go for purchasing an used one with good condition. Like this many more are there. Hope you get it.
Conclusion:
Getting away from the working class attitude and accomplishing abundance requires a mix of mentality shifts, consistent learning, strategic preparation, and making a move by taking actions. By developing a wealthy mentality, extending your monetary information, diversifying your income or enhancing your pay, embracing challenges, taking calculated risks and upskilling yourself, you can break liberated from the constraints of the working class or middle class and clear your direction to monetary success. With above process and strategies we learnt how to become rich in India or how can a middle class person become rich in India
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