6 Ways The Middle Class Can Become Wealthy

In this video, we're going to discuss how the middle class can escape the financial rat race.

As the middle class continues to shrink, it becomes harder and harder for people to earn a good income. But there are ways to escape the financial rat race! The good news is that you don't have to leave the middle class income range to achieve a level of financial independence.

In this video, we're going to discuss how the middle class can build a strong foundation for a bright financial future. If you can avoid some of these middle class money traps then you'll be on your way to financial freedom.

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Here are some key aspects of the middle-class financial rat race:

Income and Expenses: Middle-class individuals or families often have a moderate income but face various financial responsibilities and expenses, including mortgage or rent payments, education costs, healthcare expenses, and more.

Financial Goals: In the middle-class financial rat race, people aim to achieve financial goals such as homeownership, saving for retirement, funding their children's education, and building an emergency fund.

Debt Management: Many middle-class households may have debt in the form of mortgages, student loans, credit card debt, or car loans. Managing and paying off these debts can be a significant part of the financial struggle.

Job Security and Career Advancement: Middle-class individuals may need to continuously work to maintain job security, secure promotions, and advance in their careers to increase their income and improve their financial situation.

Saving and Investing: Building savings and making smart investments are essential to escape the financial rat race. The middle class often seeks to invest in assets like stocks, bonds, real estate, or retirement accounts to grow their wealth.

Balancing Lifestyle and Expenses: Finding a balance between enjoying a reasonable quality of life and managing expenses can be a constant challenge for those in the middle class. Decisions about spending, saving, and budgeting are part of this balancing act.

Economic Uncertainty: Economic downturns, job loss, or unexpected expenses can disrupt the financial stability of middle-class households, forcing them to adapt to changing circumstances.

Social Pressure: Social and cultural expectations regarding material possessions, status, and lifestyle can sometimes contribute to the sense of competition and the desire to keep up with others, which can intensify the financial rat race.

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Disclaimer: This video is for entertainment purposes only. Everyone's situation is different so do your own research before making any decisions with your money.

[jasonluckey]

Thank you for the stoic philosophy folded into this recipe. Perfect.

[gregvanommeren]

The name of the game is living below your means (avoiding lifestyle inflation, avoiding FOMO, forced scarcity) and making the saving & investing process as easy/simple as possible

[Campos]

I’m trying too. Finally getting a good income plus a raise and trying to limit my spending on unnecessary items. The one thing I haven’t given up is cars(it’s my hobby) and a $1, 050 car payment(yeah I know 🙄). I’m hoping to retire in 10yrs at 48-50 in Mexico and live off $1, 600/mo.

[lucasjohnstone]

I went from making below that to above that in the course of 3 years and I am so thankful that I had the right mentorship.

[briangleeson]

Thank you for the videos. I have recently been taking a more proactive look into my retirement planning. I've been getting a lot of good info from your content.

[marcin]

Words of wisdom! 😊 Nicely summarized Jarrod!

[Zombiebeast]

I started with a salary of about $32k 4 years ago. I am now at $53k and hoping to be $65-70k in the next 6 months with a promotion.

[michellezheng]

My favorite YouTuber, very educational

[anantsharma]

Hello Jarrad!!I wait eagerly for your videos man.Although it does not apply directly to the place where I belong(I'm from India), I thoroughly enjoy your videos because of the underlying philosophy.Like I almost daily watch your video"Why I sold all my individual stocks". Love your honest and simplistic approach.Kudos man!!You are doing a great job.

[loakland]

Excellent lessons Jarrad. Another well done video.

[thefinancialneurologist]

Love your videos! My goal is to retire at age 50, I'm a physician but I don't spend like one, though I do focus on experiences such as eating out and traveling. Reading "Die With Zero" by Bill Perkins really changed my perspective on focusing on splitting my life into time buckets and retiring early.

[OnCashFlow]

Great video, but yes you absolutely can escape the rat race. However, you have to play a different game than everyone else though. Nothing crazy, but different.

[MechEB]

Question on HSA - I usually don't withdraw from HSA for medical. It's smart to pay it off in cash and save that bill for a deduction in the future... That said... Should I reconsider this year considering inflation? It makes sense to save the bills for a reimbursement and just let that HSA sit and grow... But wouldn't most gains be eaten by this ridiculous inflation anyway?

[TA-npmc]

My 4 year old phone doesn't charge with a wire and can only wirelessly charge. I can't send pictures and I have to have it on speaker for anyone to hear me. It still "works" 😂 I just don't want to pay another 1k on a phone when I can still make this manage. I plan on retiring by the time I hit 40-45.

[CaedenV]

The whole keeping up with the Jones thing is too real. Even the most put together person is a wreck in some area of life lol.
The typical person can be successful in 5-8 areas of life, while keeping other areas functional enough to not cause major concerns or issues. So even for a neurotypical person, that is a very limited set of things they can be good at. Very few people manicure their social media because they are trying to make you feel bad, they are focusing on the few things that went their way and take some pride in to make up for the rest of their lives. 😅
And because of that, I never begrudge people showing off their baby, or celebrating a raise, or showing off an achievement. It is their way of saying "welp, I don't have everything, but I can find some value in this", and failing to celebrate that out of jealousy is often a misreading of the room.
But there are a lot of us who are not neurotypical. I'm blessed and curdes with adhd, which doesn't mean that I can't pay attention, it means that I can only shift my attention between a few things. Meds don't expand much on the number of things I can focus on, it just gives me a little more agency on the what and when of my focus. For myself, I find that I can focus on 3 aspects of life with outsized gains in success in those areas... And for periods of time I can add a 4th, but at the detriment of the other 3.
So heck yeah! My finances are growing well, and I'm making great decisions! And I'm proud of my successes in those areas! But work, family, and finances are kind of my world, with little time at all spent on hobbies or friends...or health, or diet and exercise, or home maintenance, etc. You get the picture, outsized success in a few areas, and pretty hopeless in others. But most of my life before my adhd diagnosis was spent chasing mediocrity in everything and failing at everything. It wasn't until I trimmed my focus significantly that I could be good at anything.
The other edge to the adhd sword is that I don't really get to choose my focus. Meds don't make me focus on more things with any long term success, it merely gives me a bit more agency on the what, when, and speed of transition of that focus. Trying to be normal because I'm on meds is an experiment that failed spectacularly! It doesn't remove the adhd, it just alleviates some of the worst symptoms. But this means that what has my attention is typically an emergency. We have some long running health concerns, so when those became apparent my focus was on finances, because $5k for your loved ones being institutionalized for a week isn't cheap, and it will happen again, and I'm going to pay again, so I need to be in a position that my being unable to pay costs someone their life. It is an appropriate amount of long term trauma that keeps finances front and center until my adhd brain looks at the numbers and says we are ready.
... And that is the other, other fun of adhd. When we do get to the point where our finances are secure, I am guaranteed to lose track. As obsessed as I am over them now, 10 years from now it will be equally impossible to think about them if I think I am OK. So setting things up in a way where I am not going to regret things when inevitable oblivocomes is important to not sabotaging my future. And the point is to prep for a time where I am needed at home a lot more to provide care, so I need to be able to focus on that when the time comes. I can't be floundering with a half done financial plan that made sense 10 years previous while I'm trying to keep my wife alive and happy. That time is sacred, so all the more reason to obsess on finances today in prep for that.
All that to say, even normies need to focus on a limited selection of things to find success. If you are plagued/blessed with adhd, ocd, bipolar, or whatever else, it isn't the end. It isn't some insurmountable issue that will prevent you from having a good life. Learn what you are dealing with, work with it instead of against it where you can. Get the support and meds you need to stay functional. And understand and plan around your shortcomings as well as your strengths. It can all still work out. Just don't compare yourself with others, because chances are they are massive screwups just like we are, they are just better at mitigating their weaknesses than we are so it doesn't show as obviously.
I remember sitting around talking with some parents of one of my kids, and I started talking about adhd struggles with them. They commented about how uncanny it was that we always find out who our fellow adhd people are, and I just laughed. I mean, we are sitting in a restaurant and everyone else is sitting calmly eating their skyline... And there we were with our kids sitting in weird positions, and all of the adults with unkempt hair and faded clothes that we hadn't bothered to throw away yet because "it's not that bad" hahahaha. I mean... We kinda stick out unless we are putting in an effort to hide. We know we are a mess in most areas lol. But we are all stars in our niche fields too, and doing just fine for ourselves. Ya don't need to keep up with the jonses. You just need to limit your focus, find your people, and enjoy life from time to time. Success is relative, and the most important thing is proper expectations, possible goals, and enjoying the process where you can.

[mikefritts]

I naturally do this except I save way more 50 % savings, 22 percent retirement, literally isn't that hard 2 do, if u spend it your broke and gotta make it work till next check, so just always pretend your broke😂, make it work, the more u save the easier it gets, to many people want to much silly stuff, new cars clothes, tvs phones, all which when your in a pinch you'll sell for half price 😂,

[FernandosendMail]

I enjoy watching all your videos. Explained in very simple language, backed with data and full of very actionable advice. In this day and age it’s hard to find like minded individuals that focus on the long term and enjoy living in a frugal present.
Hope to see more of your videos in the future, kudos!

[danf]

absurd... very few people ever get raises or regular raises... you have to change jobs or and careers. come on man

[kelvinreyes]

It's the easiest time in history to become wealthy! #noexcuses

[commonsenseisntcommon]

Everyone was better off before Bribenomics!!!