The Difference Between Middle Class, Rich and Poor is an important concept to understand the basics of financial growth.
Many people believe that the difference between the middle class, rich and poor is the amount of money they make every month, the amount of money they save every month, or the amount of money they have to start with.
That is often not the case. Below are the differences that I have found out from experience: –
The difference between the rich, poor, and the middle class is the mindset regarding the purpose of money. Let’s try to understand it…
Poor people
Poor people think that the purpose of money is to earn money to pay bills. Poor people believe that the whole purpose of their life is to earn money and give it to someone else’s (pay the bills). So, they keep earning and they keep paying, keep surviving from paycheck to paycheck. Around 40% of people around have this mindset.
Middle class
The middle class thinks that the purpose of money is to earn money so that they can build a credit history they can borrow money from banks to buy things that they cannot afford. Examples are the people around you, people reading this blog, people who buy things on credit, people who buy car/luxury cars on loan, people who buy furniture on loan, and people who have good jobs, and good credit history so that banks can give them a personal loan to go on a holiday. Around 49.9% of people around have this mindset.
Rich people
Rich people think that the sole purpose of money is to multiply money. Rich people buy luxuries last. Wealthy people invest and multiply money so that they can have more money. Wealthy people invest in multiple streams so that they have multiple sources of income. Rich people borrow money so that they can make more money from it by investing and getting returns that are much more than the interest on that loan. A good test to find whether someone is middle class or rich is to ask them about the amount of loan they owe on the luxury car that they drive. A rich person will almost certainly never have a loan on a luxury car because they buy it last when they have enough streams of money to sustain the price and the maintenance of that car.
Disclaimer: Articles in this blog are just the author’s or authors’ personal opinions.
It may or may not be correct. Please do your own due diligence and seek professional advice according to your own personal circumstances. The author or authors cannot be held responsible/liable for any content in this blog.
