Table of Contents
- Introduction - Why You Have an Advantage Over the Wealthy Elite
- Advantage #1: Hunger and Drive from Having Less
- Advantage #2: You Must Learn Key Financial Skills
- Advantage #3: Freedom to Take More Risks
- Advantage #4: You Can Live Below Your Means Easily
- Advantage #5: Less Susceptible to Arrogance
- Advantage #6: Greater Appreciation for Wealth
- Advantage #7: Community Over Isolationism
- Advantage #8: Nothing to Lose
- Putting the Advantages into Action
Introduction - Why You Have an Advantage Over the Wealthy Elite
It may seem counterintuitive, but regular middle and low-income people actually have significant advantages over the wealthy elite when it comes to gaining financial success.
Financial success in this case means achieving financial freedom, passive income streams, and the ability to retire early and live life on your own terms.
While the wealthy have vast monetary resources, they often lack key traits and behaviors middle income and poor folks inherently possess that fuels the hunger, drive, and humility necessary to build wealth rapidly.
These innate advantages, mindset shifts, learned essential skills, risk tolerance, and appreciation for money can catapult regular folks to fast financial success surpassing even those born into or surrounded by affluence.
Advantage #1: Hunger and Drive from Having Less
The first major advantage regular folks have over the rich is hungry drive and determination.
When you grow up poor or struggle to make ends meet each month, it ingrains an unrelenting drive to better your financial situation. You are scrappy, determined, and obsessed with finding ways to increase your income, assets, and stability.
Conversely, those born into wealth are often complacent. They’ve “made it” without having to try. They expect money to always be there and take it for granted. This breeds laziness and lack of drive around money.
Studies show that over 70% of wealthy families lose their financial status by the 2nd generation as children squander inheritances. Meanwhile, over 80% of millionaires in the U.S. are first generation affluent — they had to work non-stop to attain success.
Clearly, not taking money and status for granted fuels the hunger middle income folks have to build wealth rapidly. Their energy around money far outpaces those born on third base. This focus and determination serves them well.
Advantage #2: You Must Learn Key Financial Skills
Another benefit regular Americans have is that lacking automatic wealth forces them to learn key skills to manage money effectively.
The wealthy can simply pay others to budget, invest, and handle their finances. Meanwhile regular folks must learn hands-on vital skills like:
- Budgeting - Tracking income and expenses, balancing spending
- Saving - Setting aside money each month
- Investing - Making money work for you over time
- Earning - Generating multiple income streams
These financial skills cultivate positive money habits and are essential wealth building blocks. Without inheriting cash, middle income Americans intrinsically develop money management abilities giving them an advantage.
For example, a 2021 study by Charles Schwab showed that 57% of middle class Americans have a written monthly budget compared to just 32% of the affluent. Budgeting fuels financial growth.
Advantage #3: Freedom to Take More Risks
Another innate edge regular people have is the ability to take smart financial risks more comfortably than the wealthy elite.
When you have little to begin with, you can afford to take more calculated risks with money. Failure may hurt in the short run, but won't destroy your livelihood long-term.
The wealthy elite have so much cash and assets that taking risky bets keeps them up at night. Fear of losing their fortune paralyzes them from taking chances.
Building substantial wealth requires reasonable risks along the way - like investing in growth stocks, starting a side business that could flop, moving money from low risk assets to higher returning ones during your prime earning years.
With less to lose upfront, middle income Americans are positioned to take more financial risks necessary to accelerate wealth. Meanwhile the rich play it safe and their assets grow slower over decades.
Advantage #4: You Can Live Below Your Means Easily
Another big factor that gives regular folks an advantage is that they are used to living frugally. They know how to live below their means.
When you don't have as much discretionary income, you learn how to save, set budgets, skip luxuries, and watch expenses. Your lifestyle expectations adapt.
Conversely, the wealthy elite splurge on big houses, nice cars, amenities, expensive vacations, and fancy schools for kids. Their lifestyle expectancy increases alongside their soaring net worth.
Yet living below your means is essential to building wealth faster. Money not spent can be invested and compounded.
For example, if you make $100k income and spend $60k on living costs while saving/investing the other $40k each year, you set yourself up for financial success much quicker than a wealthy person making $500k but spending $450k annually on their costly lifestyle.
Building wealth relies heavily on living below your means - something the non-rich intrinsically embrace.
Advantage #5: Less Susceptible to Arrogance
One hazard the wealthy face is becoming overconfident and arrogant around money - especially those who inherited their fortune or attained it quickly.
When you have millions in the bank, it can distort your perspective and judgment around investments and wealth decisions.
You start to feel invincible. You operate from ego rather than wisdom. This leads to risky speculative bets that can demolish wealth rapidly.
Meanwhile, middle income folks tend to be humble around money due to living paycheck to paycheck or clawing their way to savings dollar by dollar.
This healthy humility grounds your wealth building decisions and protects you from catastrophic risky choices born of arrogance. It's a key mindset advantage.
Advantage #6: Greater Appreciation for Wealth
Tied to humility, average Americans also have an advantage in appreciating wealth more - not taking money for granted.
When you grow up without affluence or fight to save your first $100k, you understand the value of each dollar earned or saved. You respect good fortune and monetary gains.
Unfortunately, trust fund babies and those raised in luxury often lack appreciation for wealth because it was handed to them without effort. This fuels excessive and irresponsible spending that destroys net worth rapidly.
Treasuring wealth also makes you think twice before risky gambles because you worked so hard for what you have. You protect it versus watching it trickle away through egotistical choices the wealthy fall victim to.
Advantage #7: Community Over Isolationism
Another benefit most wealthy folks lack is a built-in community and accountability around money.
Fellow middle income friends and family can provide moral support, wisdom and accountability as you take steps to improve your financial status.
Most ultra rich individuals find themselves isolated - especially from other wealthy people. They tend to lack a network that keeps them disciplined, motivated and on track towards good monetary decisions over self-destructive egotistical ones.
Advantage #8: Nothing to Lose
The final advantage regular Americans employ as they build wealth is having nothing to lose.
When you don't have millions in assets already like the wealthy elite, you can swing for the fences. You can take worthwhile risks without fretting about what happens if you lose it all - because you have little to begin with.
These "nothing to lose" and "all the upside" mentalities breed the innovative thinking and hunger that can accelerate wealth rapidly for those starting from scratch.
Meanwhile, the rich make more conservative financial moves to preserve their empire rather than taking chances for rapid returns. Their need to protect enormous wealth holds them back while middle income Americans move faster chasing the same status.
Putting the Advantages into Action
In summary, average Americans have 8 key advantages that position them perfectly to achieve financial success faster than even the mega rich:
- Hungry Drive and Determination
- Innate Development of Key Money Management Skills
- Freedom to Take Calculated Financial Risks
- Ability to Live Frugally and Below Your Means
- Healthy Humility Around Money Decisions
- Greater Appreciation for Wealth
- Built-In Community Support and Accountability
- Nothing to Lose Mindset
These innate edges breed the hunger, smart behaviors, risk tolerance and wisdom necessary to make rapid wealth building decisions.
You must now put these advantages into action with targeted steps like:
1. Track your money management metrics
Start budgeting, save aggressively each month, calculate your net worth - these provide motivation as you quantification financial growth
2. Develop multiple income streams
Use drive and determination to launch a side business while working a full time job, invest in assets that produce cash flow
3. Take calculated risks
Invest 10-20% of savings into growth stocks, cryptocurrency, peer-to-peer lending for upside
4. Stick to a frugal lifestyle
Skip luxuries and status symbols, live minimalist, pour savings into assets not liabilities
5. Limit arrogance as net worth grows
Stay humble, don't let early wins distort your perspective and lead to risky bets
6. Appreciate each dollar earned or saved
Respect every increment of wealth growth, don't take money for granted
7. Build a community to bolster financial discipline
Join online personal finance forums, share journey with friends to stay accountable
8. Maintain the "nothing to lose" mindset
No matter how much you earn, keep pushing harder to accelerate goals
While the wealthy elite have vast advantages, adopting this aggressive, focused mindset that middle income Americans innately develop puts you on the fast track to surpass even those born into rich families.
Stay driven, take risks, appreciate small wins, remain humble - converting these innate edges into financial freedom. The hungry middle class is positioned to achieve wealth rapidly using this blueprint.
.png)
.jpg)
0 Comments