The Middle Class & why you DON'T want to be there!

The MIDDLE CLASS and why you DON’T want to be there!

By: Sean Flanagan

Do you dream of owning your own home with a white picket fence? Maybe a brick-wall? Or maybe a lot of land in the middle of nowhere?

What is the American Dream and what is being “Middle Class”?

Growing up my parents would say without skipping a beat, the middle class is having a good job and owning your home. Like most of us, this is a very traditional upbringing and something we have been taught by our parents. “Go to school so you can get a good job. Once you get a good job buy a house.” However, the world has changed over time and continues to change. As such we must change and adapt too. The notion of going into debt for a degree and going into debt to purchase a home when you are just starting off in life does not sound like an American Dream to me. 

Did you know the average cost of tuition at private nonprofit four-year is $54,880. If you’re like me and took five years to get a four year degrees (True Story!) That is roughly $274,400 in tuition payments. That doesn’t include the cost of supplies, food, room & board, etc. 

Or the average cost of a home in the United States today is $408,800. If you only put 5% down on the property you would have a home mortgage loan for $388,360.

Just with a college degree and buying a home you have amassed an impressive net worth of     

-$662,760 in DEBT! READ THAT AGAIN. Does this still sound like the American Dream?

Like you I also thought this was normal or what I was supposed to do. How could this be wrong? After all this is what my parents wanted for me. It’s not that my or your parents wanted us to go into debt and drown financially. This model is what worked for them when they were being raised. They grew up at a time when the bank had double digit interest rates and the cost of college education and owning a home was significantly cheaper. 

So what then am I to do? Not be educated and be homeless? [see what I did there]

Not at all, in fact today right now is the best time to capitalize on this opportunity. Post COVID the world has changed. Remember we have to change and evolve as well. How about investing in yourself? I would encourage you to learn how money works and understand the difference between a true asset and a liability. 

Why is it wealthy people buy assets and middle class and poor people buy liabilities?

It’s all in how wealthy people view money and how the middle class view money. 

Money is simply a tool and it’s only useful when it’s used. This is a game the wealthy know and play. 

Here is the formula to not be in the middle class “rat race” 

1.) Take your earned income

2.) Invest your earned income into assets that cash flow

3.) The cash flow from you assets you use to support your lifestyle

4.) REMEMBER acquire assets before liabilities ** <—- This is key**

“If you don’t find a way to make money while you sleep, you will work until you die.”

Warren Buffett

Have a great weekend!

The best investment on earth is earth.

~ Sean

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