Yes it is possible to get rich on a middle class income, but it’s not easy. I have to admit, even while typing this title, even I started to get dubious about the chances of such an ambitious goal.
So why am I typing this article if I question it myself? Because I did it, so why not you too?
I come from a scrappy background, where just getting to middle class was triumph in and of itself. I’m not going to go off on that tangent because I don’t believe that it helps much for the purpose of this article, so we’ll just leave it that I never expected to be in the middle class or being able to accumulate wealth of any sort.
The terms “wealth” and “rich” are a very relative terms, and I’m sure to many my definition of rich, isn’t even close to what they would describe as “rich”.
So that begs to question, what is my perception of “Being Rich”?
My definition of being entry-level rich for the area I live in is having a net worth over 1 million (1.6 million is my personal goal). Having 1 million dollars would pretty much put one in what I consider the minimally financial independent point were one wouldn’t have to work anymore. While life wouldn’t be extravagant, it would be comfortable and good enough.
Okay, enough talk about me, so how does one get rich on a middle class income?
- Playing the wealth accumulation game.
- Do what you have to do to save as much as possible.
- Grow your money
- Tracking your Goals with an application or as in my case a spreadsheet I created in Microsoft Excel.
- Never give up. By this I mean even when the market dips 40%, stay the course.
- Continue to learn or invest in balanced mix of index ETFs that fits your risk profile.
- Instead of spending money on a hobby, make wealth accumulation your hobby! Perhaps starting out in real estate, mutual fund or stock market investments? Knowing that it’s your hobby money…
- Believe that you can and follow through. You will most likely make mistakes, but that’s okay. Consider it part of the learning process. After all, you probably weren’t able to ride a bike the first time without falling at least once either. Why is learning in any other area any different?
Things that I have done to push me over the edge in accumulating wealth:
- At one point I worked a 2nd or more jobs.
- Later (and currently) I’m working 1 job, but still participating in my own businesses.
- Real estate. It’s at least 1/4 of my wealth.
- Paper investments like stocks, mutual funds, etc.
Why not try to create a cheap business instead of watching a reality show. You’d be surprised what you can do if you have focus and follow thru!
This is what I did and what I’m doing!