If you’re an ambitious member of the middle class trying to break into the upper echelons of society, what steps can you realistically take to reach your financial goals?
See: 3 Ways Upper-Middle-Class Retirees Stay Rich in Retirement
Read: 6 Genius Things All Wealthy People Do With Their Money
Making the following choices can help you reach your goal of joining the upper class.
Transform Your Money Mindset
To move from financial self-sufficiency to abundant wealth, you need to shift your money mindset. In an interview with Grow (CNBC + Acorns), self-made millionaire Grant Sabatier emphasized the importance of treating money as a tool for making wise choices, rather than just for purchasing items. It’s crucial to cultivate positive and solution-oriented thinking, as highlighted by Danielle Miura, founder of Spark Financials. This mindset would keep you on the path to the upper class even when circumstances turn unfavorable.
Look: Luxury Living on a Budget: 6 Tips for the Upper Middle Class
More: Net Worth for Baby Boomers: How To Tell Whether You’re Poor, Middle Class, Upper Middle Class or Rich
Revamp Your Financial Habits
As you shift your money mindset, reflect on and change any financial habits that no longer serve your aspirations. Investment advisor and founder of Standing Oak Advisors, Scott Eichler, pointed out that middle-class individuals commonly overspend, hindering the accumulation of wealth. Breaking free from such habits involves saving, investing, and maintaining a modest financial overhead. According to Eichler, the wealthy manage to grow their means by living below them, which allows wealth to accumulate.
Learn: The 5 Levels of Wealth and How To Get There
Embrace Good Debt
Differentiating between good and bad debt is crucial. Overreliance on bad debt like credit cards and payday loans can hamper your financial well-being. Conversely, good debt, encompassing mortgages and reasonable student loans, can offer powerful advantages if managed responsibly. Andrew Rosen, CFP and president of Diversified LLC, underscored that the wealthy avoid negative debts while leveraging good debt to invest in themselves or build businesses.
Invest In Yourself
To ascend from the middle class, invest in yourself by acquiring new skills and seeking career growth opportunities. It’s essential to avoid professional stagnation by seeking out ways to enhance your professional self, as advised by Andrew Rosen.
Collaborate With a Financial Advisor
Transitioning to the upper class may necessitate professional guidance to navigate the financial landscape effectively. By working with a financial advisor, you can effectively align your financial resources and make informed investment decisions that suit your goals and risk tolerance. Collaborating with a financial expert is key to making astute investment moves.
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This article originally appeared on GOBankingRates.com: 5 Financial Tips That Will Help You Make It to the Upper Class
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