What does it mean to be part of the middle class? Has this become a cultural identity or an economic identity?
The psychological implications of being part of the “middle class” have heavily affected our financial decisions. For instance, when people identify themselves as middle class, I see many of them make a common mistake: They fail to engage in the process of financial planning.
People don’t value their assets and this results in minimal if any financial planning. The mindset of being part of the middle class does not really let people expand their minds and focus on investments. If you don’t invest, how can you double, or triple your assets?
Being labeled as middle class can actually deter people from participating in financial planning. People should not be stigmatized by these labels. Instead they should be empowered to change their current economic status.
Picture by arun kumar