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Poor vs middle class vs rich: How they earn and spend their money

poor vs middle class vs rich

It is the eternal question. Why are the rich getting richer and the poor and the middle class getting poorer? Let’s discover the fact: poor vs middle class vs rich.

You may have always thought that what makes a person rich or poor is only their income. Income influences the economic and life level of a person, but not as much as you imagine; There are many people with very high incomes and who are poor, and others with low incomes who are considered an upper middle class or even rich.

Quiet, I will not tell you philosophical stories about wealth and poverty, nor will I ask you to detach yourself from your material possessions and become a Buddhist monk to attain spiritual wealth; I’m going to talk about tangible things, with which you will surely feel identified and which can change your economic future.

At the end of this article, I hope you have learned to detect what your habits and beliefs about money are, and which of them you have to modify to achieve better prosperity and financial freedom. You will discover what the rich do to be rich.

But I warn you, I’m going to show you a new way of seeing the poor, a new way of seeing the rich, and a new way of seeing yourself. Maybe at some point hurt your sensitivity and your pride.

Poor vs middle class vs rich

So, before you start reading, I would like you to forget for a moment your prejudices and beliefs about money or social classes, and that you will face reading in a neutral way and with a critical sense towards yourself. I ask you to have your mind open.

Throughout the text, I will make a diagnosis of the typical habits of people towards money and why those habits determine their economic status. Well, I do not linger anymore, we go to the mess.

The poor

The poor

The definition of poverty is very different depending on the context in which we find ourselves. It is not the same for a poor person in Ethiopia, where misery and famine is the usual pattern throughout the population, if we talk about a poor person in Norway, where that person enjoys some social services and benefits, and also of opportunities to get out of your economic status.

Speaking in the context of the society in which we live, when I speak of a poor person, I am not referring to someone who lives on the street or practices begging.

The type of poor person I am going to refer to is the person who has income, which can be low or even medium or high. It may be that income comes from a job, or a pension or even a business. That person has a roof to live in, whether it’s for rent or property, and leads a normal life, let’s say.

However, even taking into account all of the above, that person is poor. He leads a life of financial calamity, is always suffocated by debts and continually brushes bankruptcy.

What is it that makes a person who has an income every month come to this situation? Is your income the problem? Why is that person poor?

Let’s go see it.

Habits of poor people

As I said, poverty is not directly related to the income of a person, but rather to their habits and financial habits.

Let’s see the most common habits of poor people:

They spend their money on trinkets. They buy things they do not need. A static bicycle that they used two days, that fantastic product to take out crunches that they announced in the tele store, the kitchen robot that stays at an incredible price if you collect the coupons of a magazine, all the shoddy contraptions that they sell in the stores of the Chinese … In short, they buy a lot of junk products of little use and that they do not need.

They hire unnecessary services. Digital television with the Liga package and all the extras of movies and series to then always see the same, the smartphone rate with 10 GB and unlimited calls to send four WhatsApp per month, the gym fee not to go, the registration to Some absurd club that does not contribute anything … A lot of unnecessary services and contracted without logic or control.

They buy all the products on offer, although they do not need them. They make the purchase in the supermarket without criteria, if they check what they really need to buy. They take advantage of all offers and promotions even if they do not need any of that particular product, simply because “it’s too cheap” or there was a 3 × 2 offer.

They frequent the bars. Drinking a beer in the bar with friends or going out drinking is nothing wrong, it falls within the usual leisure practices of our society. However, poor people exceed these events. They do not deprive themselves of their coffee or daily cafes in the bar, nor of their beers when it is served, and on weekends they spend whatever is necessary for drinks or dinners until the body endures, after all, life is two days, right?

They use the credit card. When something appeals to them, but they do not have enough money to buy it, they use the credit card at their discretion. And if they are going to buy an item, they finance it in the store with the excuse: “They Do not charge interest to me”.

They have no control or planning over their economy. They do not make a forecast of their cats or their income. They charge and spend driven by emotions and without thinking.

Conclusions about poor people

You’ve seen what I meant with poor people. They could be defined as perfect financial calamities.

Their habits with money make them continually on the margin of poverty; without money, without savings, without planning their economy or the future, but with a lot of trinkets, services and debts that sink them more and more into the well.

Sometimes, due to all this, the phantom of eviction or seizure hovers over their heads.

Do you think that improving the income of these people will improve their situation?

I have already said that the income of this type of poor people can be variable. That has a greater economic income the only thing that it will do is to buy more trinkets, hire more unnecessary and more expensive services, spend more money in the bars or raise the credit of your credit cards, all this following the habit of not planning your economy personal and not think about the future.

In any case, an increase in your income will not improve your financial situation. In the best of circumstances, the improvement of your income would bring you closer to the middle class that we will see next.

Middle class

Middle class

The famous middle class. The sustenance of the economy of every country. It is they who work and those who consume; those that move the economy.

But what makes middle-class people never escape from that circle that keeps them always dependent on a job?

As in the previous case, we would define the middle class person as someone who has low, medium or high incomes; does not matter. Someone who has a home, either for rent or property. And that their income comes from working for others, being autonomous or through their own company.

As you see, we start from the same base as in the previous case. However, we will see differences in the habits of middle-class people with respect to the poor.

Habits of middle class people

It is understood that middle class people have a comfortable life; Enjoy life and have all your needs covered. However, they look like slaves. Slaves of their jobs, slaves of their mortgages, slaves of their debts, dependent on public services …

Let’s look at the habits that lead middle-class people to find themselves in this situation:

They love to live above their means. The best house, a high-end car, the largest television, the last iPhone in the market … spend and assume debts up to the limit of their income, and beyond. The mentality of the middle class is the continuous search for luxury and opulence, and if possible, greater than that of its neighbor. This leads to an exaggerated consumption of all kinds of material and consumer goods.

They are mortgaged. The great symbol of the middle class is none other than the house in the property . Middle class people understand that the culmination of their journey in life is to have a home of their own and be able to be with a pool, common areas and parking space. A dream house with a nightmare mortgage, which will make them slaves for 30 years (or more).
There are also those who choose to live for rent – a more intelligent option in many cases – but there are those who again make the mistake of renting a house with unnecessary luxuries that increase the monthly payment.

Buy on credit. Have a good car, the best TV, the kitchen with the best appliances or spend the summer holidays in a dream place. Everything sounds fantastic, but it’s very expensive. But there’s no problem! Everything is solved with our friend credit. Buying all these products through credit is the usual trend. The car is usually the most typical object to finance. Another great symbol of the middle class. You’re nobody in the neighborhood if you do not have the new Audi model. The middle class finances their luxuries and caprices with credit.

They use the credit card. Another characteristic of the middle class is the indiscriminate use of the credit card. If they want to buy something but do not have money, they pass the card and voilà! It will be paid next month when it charges.

Conclusions about middle class people

As you see, middle class people are not too different from poor people.

They basically do the same thing: they buy liabilities and get into debt.

Middle-class people have better control over their finances and tend to be more proactive in their economy, however, they use their income to buy luxuries that they normally pay on credit. They mortgage themselves with homes and cars and buy quality products or services that are expensive.

They live at the limit of their income.

They trust that the weight of everything they buy falls on their salaries. But sometimes, their income diminishes or disappears, and that’s when the financial problems come.

Will higher incomes solve your financial problems? Not with higher incomes, the middle class people will not leave the race of the financial rat. They will buy better homes, incur bigger mortgages, buy better cars, buy more and better consumer products …

Earning more will not make them richer, it will only make them lead a more expensive life.

The sad thing is that most people are what they are looking for, to earn more to lead a more expensive life, thinking that this will give them more happiness, when in reality what they are doing is becoming more slaves. Slaves of your income source: a job or activity that you do not like and steals your life time.

Remember that everything you buy does not pay with money, you pay with the time of your life, the time you use to earn that money.

Do you feel identified with these things?

It is very possible that you like to lead that life. Better said, you still do not like it, but it makes you feel safe. At the end of the day, just like me, is what we have been taught since childhood as the right thing; the only way to do things.

Now I will show you how rich people act and those who have financial intelligence. You may decide to lead the same life as before, but at least you will see that there is another way of doing things outside of your financial comfort zone.

The rich person

The rich person

I do not know what this society has that always hates the rich. Well, unless he is a footballer, in that case he is idolized or forgiven for his little fiscal misgivings.

And this is curious to me because society hates the rich, but nevertheless, all yearn to be rich. Everyone wants to have a lot of money, but the only thing they do to achieve that desire is to play the lottery.

But the questions that I really want to answer is, what is that really about being rich? How much money do I know is rich? What does a rich man do to be?

What is promised is debt. Here I will tell you what the rich do to be rich. The mechanisms they use to increase their wealth and what their habits are with money.

To be rich is not just to have an immensity of money: to bathe in € 500 bills. Being rich is an attitude towards money , and you will see it here.

I know people who are rich without having big salaries. In the same way, I know people with large payrolls or companies and that is not rich, but they eat the debts and financial problems.

Being rich is an attitude.

Contrary to what most people think, rich people do not live surrounded by great luxuries. Rich people really live a discreet life. They lead a very comfortable life without ostentation or surrounded by great luxuries. Really rich people even become austere.

The idea of ​​wealth that has been instilled in us by children through society and television is a lie. So it is that the poor and the middle class long to be rich just to cover themselves with luxuries. And most of what they do is play the lottery, thinking that money will make them achieve their dreams, but reality proves something else.

A person who gets a large income, if you do not manage your money well, if you do not have good financial habits, sooner or later you can end up in bankruptcy.

So is.

It is the habits of a person that can make you rich. Maybe not millionaires, maybe not with a life of extreme luxuries; but with a very comfortable and free life. A life financially solvent and far from the “race of the rat” of the middle class.

Habits of the rich people

Rich people can be salaried in a company, self-employed or have their own company. But what defines a rich person is that not only depends on a single source of income.

In the case of the footballer who put previously, it may be rich today, but if tomorrow stops playing, it is very possible that your income level falls drastically.

Therefore, good financial habits can make your personal wealth grow over time, or remain solid in the face of a drop in your main source of income.

Let’s see the most common habits of rich people to achieve this:

Gain assets. One of the most important habits of someone financially intelligent, is to buy or create assets; all types. They can already be financial assets such as stocks, real estate assets such as garages, houses, land … Everything that puts money in your pocket through a periodic income: passive income. The rich buy “cows” that give them milk. This is the true secret of wealth.

They buy the whims at the end. Before buying the Audi, or borrowing up to the eyebrows, acquire assets that provide a series of income. It is those assets that pay their whims, not their payroll or their main source of income. But of course, you want to enjoy the Audi today, that’s why the middle class asks for a loan. The rich man buys the Audi when his assets can pay for it. Do you see the differences?

They take control of their finances. They budget all their income and expenses and dedicate part of that income first two savings and investment. Everything else is secondary. The first thing is to save to acquire assets.

They pay themselves first. Before paying their expenses, their bills, their obligations, they first pay themselves. At the beginning of the month they use that money destined for themselves for investment and assets. Why pay the phone bill before yourself? Are you not more important?

They invest in their training. They know that the best investment a person can make is to invest in himself. Spending money on training is the best investment you will make. Whether it’s a book, a seminar, a course … It’s the best money you’ll spend in your life. Remember that you are your greatest asset.

They look for additional sources of income. The rich use the money they save for investment to create new sources of income. They dedicate that money to buy shares, acquire a real estate property, invest in a business … There are many forms of assets. But the rich man does not abandon himself to the fate of depending all his life on payroll or business as the sole source of income. Dedicate a percentage of your money always to investment and the creation of assets that provide you with an additional source of income. Especially looking for new business, no matter the size. They venture to undertake new projects.

Conclusions about the rich

You’ve already seen it: assets, assets and assets.

There is no more secret. Everything is aimed at it.

A lifestyle, habits centered on the creation of assets that provide income.

The rich do not think in the short term. Do not think about earning a lot of money today, think about making a good estate progressively over time. Do not think of enjoying all the whims today, create assets that pay those whims and luxuries tomorrow.

The rich do not seek security. He knows that security makes him poor. The rich are formed and undertakes new projects. The rich man is not afraid to make mistakes.

The rich are not left to the fate of payroll or just a business or source of income. Try to diversify and increase your wealth. He does not wait for his salary to rise, he does not work harder at his job to earn more, or he waits for the customers of his business to rain down on him from heaven.

The rich man becomes rich by acquiring assets that provide a source of passive income, and he does so throughout his life. It focuses mentally towards it.

It will reach a greater or lesser wealth, sooner or later. Everything depends on your habits and abilities, but the wealth will come and it will be solid.

Wealth does not just consist of money. The rich man is not evaluated by the amount he has in a current account. The rich man is rich because of his economic lifestyle and financial habits.

The true rich, without any doubt, is a FREE person, regardless of the money he has.

Money is not earned by working, it is earned by thinking. If you win working, those who work from 8 to 5 every day, would be millionaires.

Final conclusion

You have already seen that a person’s income does not determine their economic future. It is your financial habits that do.

The poor waste their money.

The middle class goes into debt, entrusts everything to their salary and lives at the limit of it.

The rich save, invest and create assets.

If you want to achieve the free life that a rich person leads, you must change your economic mentality and your financial habits.

The life of the middle class provides false security and comfort. The life of wealthy people carries a little more risk and uncertainty, but in the long run leads to a more comfortable, safer and freer life.

It all depends on whether you are willing to pay the price to get it.

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