Middle Class Money Traps That Will Keep You Broke Forever

Middle Class Money Traps That Will Keep You Broke Forever

Are you the unwitting victim of these money traps that rob your wealth causing you to remain stuck in the rat race of the middle class? Failing to avoid these traps is detrimental to your financial health and can keep you dependent on a paycheck. Many people function on autopilot unaware of these simple actions that are preventing them from creating the wealth they want. It can seem that there’s just never enough extra money no matter how much you earn to spend in a meaningful way like investing for retirement or making purchases that are deemed important. Avoiding these middle class money traps, especially number one, will help you break out of the rat race so you can financially support the lifestyle you desire.

[lockman]

For forty years I drove old cars and trucks. Lived in rough neighborhoods. Went to night school and worked weekends. Eventually I made my way up the corporate ladder. Moved every 3 to 4 years. Put up with loads of work related stress traveling as much as 40 weeks per year. I managed to live on half of my income and I invested the rest. Now I'm done (thanks to the pandemic) I no longer need to work. so I'm free. The downside is I traded the best years of my life kissing corporate butts. I wish I smelled the roses a bit more along the way.

[DonaldMark-nese]

Nobody can become financially successful overnight. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals. you have to contend with inflation, recession, decisions from the Feds and all. I was able to increase my portfolio by $289k in months. You have to seek for help in the right places.

[tammy]

It is very important to consider all your options. Working worked for me, but maybe not for others. I actually only worked 14 days a month by maxing out my paid time off of six weeks a year. I had a pension and a work investment plan, I used both. I worked another job on my paid day off, earning double the money for many years. I lived close to work and stores and did very little driving. Study, try new things. These videos are very helpful. Thanks.

[mxbadboy]

A true story. I was talking to a woman at work and she was telling me how she and her husband (they also have kids) were struggling financially. My heart ached for her. After work when I was pulling out of the parking lot I was behind her. She was driving a brand new high end car with temp tags. That is the stupidity of us in the middle class.

[Bad_Luck]

10) Not knowing what you’re invested in.
9) Actively trading.
8) Tax planning.
7) Being unwilling to make changes.
6) Not buying a house.
5) Not taking risks.
4) Spending money because you deserve to.
3) Claiming you don’t care about money.
2) Keeping the wrong career.
1) Thinking none of these will work for you.

[M]

You may reach financial security but you won’t unless you follow these 9 word: Spend less than you earn and invest the difference. How you do that is up to you. If you don’t follow those 9 words, I guess you will always be living paycheck to paycheck.

[bluemouse]

I'm 64 years old and made every one of those mistakes in this video when I was younger, it took me a long time to finally come to my senses and begin to think about my personnal finances, it wasn't till I turned 55 years old and it hit me, Damn I'll be 65 years old pretty soon and I don't have shit saved for retirement ! My father gave me advice when I was 21 years old but I ignored him, He said when you get paid, Pay yourself first, meaning put something in the bank even if it is only 20 dollars out of your paycheck, but I didn't listen and tried to live a lifestyle I didn't earn or deserve to have and lost a lot of money on fast women and slow horses !

[lanetomkow]

In my subjective experience, the things that have made made partially wealthy are these:

- Not fearing to move/relocate
- Not fearing to start another career
- Buying a house (investing in real estate)

Those things brought me to my best position in my life.

Father of 2 and husband to a wife that could work or spend time raising our kids. Whatever we choose, we have the freedom to make the best decision for ourselves.

Being able to make decisions best suited for you is the reward.

Good luck and God bless.

[paulbrown]

My biggest one was "I deserve this... (vacation, or car, or piece of clothing I don't need, or going out to lunch most days at work)." Many of those items ended up on credit cards that were not immediately paid off, which made it even worse. We have learned our lessons and have climbed most of the way out and are heading for financial freedom!

[MatthewVinson]

The first 100k is the most difficult one because it's looked at from a 1k perspective which means you need to 100x. That's waaay more difficult than 10x that 100k to 1M. Have a million dollars..Got it.. The best strategy that I understand is Voo for most of my portfolio let it grow for many years as your work. Then as I get close to retirement, transition some of it to high yield div etfs; VYM for example. Also I’ve been finding VIG to be a good balance to dividends and safe growth.

[darrelllee]

Car payments are the biggest trap. I am glad that you hit a little on that. First, vehicles depreciate in value so they are not an investment (with the exception of certain collector cars). So you are going to pay interest on a depreciating asset! Second, they are just expensive. You can get a good used car for cash and use that money elsewhere like on your house which is an appreciating asset.

[loganerb]

Love the video my only critique would be I feel that rule number 6 is true but only when the time is right… buying a home to early and/or in the wrong market can be extremely detrimental to your finances if you’re not careful!

[MorganBrown]

11. Spending all day watching YouTube

[thomasmatthew]

Good message with: 4.) Spending money on yourself because you deserve it. Rewarding yourself is super important, just make sure you really deserve it (whatever it is) and whether you want to accept that part of your "reward" is living with the financial burden from it. Otherwise go for it! Why else are you working?

[Ogema-]

I remember when my family was in a bit of a financial bind, Mom asked what investments were good. I said I have a couple of ideas but for most people, the best investment is maxing out your 401k match because it's basically an instant 100% return + it's also just 2x stocks, paying off your credit card, and buying a home in that order. It's simple math and thankfully we bought a home in better times so tapping into equity when everything was around 3% was a real lifesaver literally we went from going paycheck to paycheck to huge cash surplus with a stroke of a pen. Because yeah after 12 years paying for a house and a lower interest meant we were paying way below rent for the home.

[AmandaHugenkiss]

The best way to play the market is put the same amount in every paycheck, starting when you are young. If there is a substantial drop and you can afford it, increase your contribution while it's down. You may even find you can leave that higher amount permanently. Also, stay away from new cars, leases, and credit cards. Easier said than done but at least try.

[bellofigoitaliano]

Quick tip from everyone, if you live with your parents, you should be saving like crazy because you’re being sheltered from the inflation umbrella, your parents and time are the biggest assets you have when you’re young. Your parents are there to help you, don’t feel
Guilty for mooching off them as long as you’re e building your portfolio in the process.

[fredrickconte]

There might be an economical turmoil but there is no doubt that this is still the best time to invest.

[ExplorationRandomDestination]

I enjoy eating good food once or twice am onth and spend more on high quality food even though sometimes i eat junk. Feel like Eating good food is one thing worth paying for. You dont need organic everything but certain items it makes a much bigger difference buying organic vs not. Some pretty good lists exist as to whats wortth buying organic.
On another note I bought my first house at 28 2 years ago did some work and then rented it. This winter tenant turned the heat off going away and im not sure the extent of damage so far it seems minor but the long term is what im worried about. Besides that it has been one of the best decisions I have ever made. I am also starting a business/side hustle soon and am very excited to move forward in it.

[binagital]

The truth is, money is worthless until you put it to work. Successful people look for business to invest on and make more money.