Are you guilty or have you been guilty of setting the worst goal ever for yourself? Chances are you have been guilty of this at one time or another, because the majority of people in western society strive for this goal.
What is it?
It is……………………….THE MIDDLE CLASS!
The middle class is the epitome of being average. It’s trying to be like everyone else, and in some cases trying to compete with everyone else.
Unfortunately this is the goal for most people living in the USA. The goal is to go to school, try to get straight A’s or at least close to it, participate in some extra curricular activities or some sports in high school, try to get a scholarship to a good college or university, obtain a bachelors or masters degree, possibly a PhD for some, just so you can go work for a big company, start out at a lower wage than what you were making while bar-tending part time during college, working your butt off at a job that you really don’t like, while kissing the rear end of your boss, just so you can have a chance at a promotion into management, all so that you can be comfortable, living an average life, living in an average house, living in an average neighborhood in the suburbs of an average city, while sending your kids to an average public school, taking average vacations, an average amount of time of once per year, to average destinations, flying in the average coach class of the airplane, staying in an average cramped hotel room, eating at average restaurants, only to return home from vacation back to your average life and average job!
Maybe you’re perfectly happy with this life style and you have absolutely no desire to improve your circumstances. If so, please keep reading because you need this information more than you know.
There are 4 reasons why shooting for the middle class should never be your goal and why you are often better off being poor than being in middle class:
- The middle class are the highest taxed
- The middle class does not qualify for most or any social programs
- The middle class has the least amount of control over their time
- The middle class still lives paycheck to paycheck like the poor
The middle class are the highest taxed
You might be tempted to disagree with me and tell me that the rich are the highest taxed people, and yet while it is true that the more money you make from a job, the higher percentage of tax that you pay, you are right there, but this is where it gets interesting:
The majority of rich people do not earn money from a job. The majority of the rich own their own business, and what more? Most of them have their businesses in a business entity such as a corporation or LLC. This allows them to make a crap load of money in their business, but write off their car, a part of their house, their trips, their vacations, and they pay themselves a very small salary from their business entity and they can end up paying very little if any money in taxes.
The majority of the middle class work in jobs, some of them high paying jobs, and they end up giving almost half of their money to the government before they even get paid. Those who are in the upper middle class making over $150,000 per year really get screwed on taxes.
The poor, well, just like the rich, they pay very little if any money in taxes.
The middle class does not qualify for most or any social programs
Unless you live in a socialist democratic country such as many of the countries in Western Europe, you will likely not qualify for any social programs at all, and if you do live in Europe, you are likely paying dearly for these social programs through your taxes.
The poor in the USA do qualify for free healthcare, free school lunches, discounted housing, and more.
The middle class, who live paycheck to paycheck just like the poor, sometimes resent the poor because they can get these programs while they as middle class folk cannot. They feel they should get those benefits too, or that the poor shouldn’t get them either because the middle class taxes pay for most of these programs.
The rich? Well, as we discussed, they don’t pay much in taxes, so they are not footing much of the bill for these social programs.
The middle class has the least amount of control over their time
Who works the longest hours? If you said that the rich do? You may be right in some cases, but in most cases, the ultra rich actually work fewer hours than the higher paid middle class. Even if the rich do work lots of hours, they still have control over their time.
With the middle class, the more successful they are in their jobs, the higher up they move in the company. The higher up they move, the more responsibility they have, the more responsibility they have, the more hours they have to work and the less control they have over their time.
The poor? Most of them work 40 hours per week, and quite a few of them work much less than that.
The middle class still lives paycheck to paycheck like the poor
One thing the poor and the middle class have in common? They both live paycheck to paycheck. As the middle class work their way up in income, their expenses usually go up with it (sometimes faster). Their debt usually goes up too. Even the high end of the middle class lives paycheck to paycheck. Let’s look at California. The high end of the middle class there is around $130,000/year right now. That may seem like a lot of money to some of you, but consider this:
The average cost of a house in a San Diego suburb is about $650,000 right now. That will get you a 3 bedroom home in a decent neighborhood.
With principal, interest, taxes, insurance, and mortgage insurance, the payment will be around $4300 per month.
$130,000 per year is $10,833 per month. Take away taxes and you are at $7000 per month after taxes. Take away $4300 more the mortgage, about $700 for two car payments, that leaves you about $2000 left for groceries, insurance, entertainment, utilities, gas for your car etc etc. Do you see how easily that money can go POOF? Especially in CA where everything cost more?
Many of the rich have learned the art of making money on demand, so if they run out of money, they can literally run a sales campaign and make a lot of money in a short time. They don’t live paycheck to paycheck.
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What are your thoughts? Please comment below.