There’s no official indicator when you step into the middle class, but you’ll see the
signs like owning a home, a car, paying for your kid's college tuition, and still having
some cash to spare.
To bring this video to life and make it more relatable, let me introduce you to Simon.
Simon is your typical Joe, he grew up in an average family, His parents were lower middle-class
and did occasionally struggle with the bills.
Simon went to an average school, graduated with a high school diploma, and thanks to
his average grades he managed to get into a decent college.
After four years in college he graduated, and thanks to his dad’s network, he managed
get an internship which led to a decent job.
Simon is nobody extraordinary, and because of his relatively poor upbringing, good financial
principles were never really instilled in him nor was it ever a priority.
As a result of this, when he got his first job and money started flowing in, he became
a little reckless with it.
Simon became a spendthrift.
As if trying to feel a void left in his childhood, he loved to buy the latest gadgets, take expensive
vacations, and dine out at fancy restaurants.
He had several credit cards, and he used them without thinking twice about the consequences.
He had never been good at budgeting or saving money.
One day, Simon realized that he had accumulated a huge amount of debt.
He had several credit cards with high balances, and he was making only the minimum payments
on them.
He was also paying high-interest rates on his loans.
He realized that he had to do something about it before it was too late.
Simon began to take a closer look at his finances and how he was spending his money.
He created a budget and set realistic financial goals for himself.
He also began to research ways to get out of debt.
He read books and articles on personal finance, and he sought the advice of financial experts.
He started by cutting back on his expenses, such as eating out less and cancelling subscriptions
he didn't use.
He also started looking for extra income opportunities such as freelancing or renting a room in his
house.
He also made a plan to pay off his debts by starting with the credit card with the highest
interest rate first, and then moving on to the next one.
He also made sure to pay more than the minimum amount due on each card.
Simon stuck to his plan and was able to pay off all of his credit card debt within a year.
He also paid off his car loan and student loans.
He felt a huge weight lifted off his shoulders, and he was proud of himself for taking control
of his finances.
With his debt gone, Simon was able to focus on saving and investing for the future.
He set up an emergency fund, started contributing to his 401(k), and even opened a Roth IRA.
He also began to invest in the stock market, and he was able to grow his wealth over time.
This short story shows that it is possible to dig yourself out of debt and become financially
well-off.
It, however, requires discipline, commitment, and a lot of hard work, but it can be done
with a proper plan, budgeting, and seeking professional advice.
Now let me share with you the principles that got Simon out of the financial mess, and into
a much better place.
Principle #1.
Wealth is first a state of mind Growing up Simon's parents regularly got into
heated arguments, and most mornings Simons dad would wake up with a frown on his face,
as if trying to hide despair he would smile at Simon intending to reassure him that everything
is ok.
On occasion Simon would hear his mom complaining over the phone about how life is hard and
how tired she is of their lifestyle.
The constant arguments, and seeing his parents unhappy had a negative impact on Simon's self-confidence.
And whenever Simon tried asking his parents about their situation, they would desperately
fake a smile, and say everything was OK.
Watching this from afar gave Simon a faint idea of how life was, and this mental image
would shape his mindset, behavior, actions and lifestyle for a very long time.
This is also one of the reasons why he felt the urge to buy a lot of things, most of which
he didn't need, all in a desperate attempt to try and fill some void left in his childhood.
The scars left on Simon at a young age, dictated most of his adult life.
It wasn't until many years in the future after by chance, attending a seminar that his friend
invited him to, where he met a passionate motivational speaker, who had a similar upbringing
to Simon would transform his life.
The speaker talked about his hard upbringing, and these strategies he used to plough himself
out of the rough he was in.
A key principle that Simon took from the speaker Telling yourself daily that you are worthy
and deserving of success.
You see one of the key determinants of success is how did you see yourself, do you see yourself
successful?
or do you see yourself as a failure like Simon did?
transforming your mindset and believing that you are capable of achieving high level success,
is a key fundamental to transformation.
In the words of Andrew Young, “I have about concluded that wealth is a state of mind,
and that anyone can acquire a wealthy state of mind by thinking rich thoughts.”
And just like Robert Kiyosaki said, “The single most powerful asset we have is our
mind.
If trained well, it can create enormous wealth.”
Principle #2.
Your Five Friends Show me your friends, and I'll show you your
future, said a wise person.
If you didn't know you are the average of the five people, you spend the most time with.
Have a look at your network today, the people you surround yourself with, the people you
play with, the people you eat, chat and gossip with, and then ask yourself, are, or, what
value are these people bringing to my life?
If the answer you've got from the self-examination is nothing, then perhaps it's time you look
for new friends.
You should be prepared to leave or limit time with friends who add no value to your existence
and start hanging out with people who have a clear perspective on life, because your
friends reveal a lot about your behaviour.
If you make new friends that think about how they’ll turn every problem into an opportunity,
you’ll also desire to be like them.
It’s in the desire that new opportunities branch out and connections come through.
If you're thinking that this isn't enough to dump your old friends and get better new
friends, then remember what Aditya Mehta once said, "The mediocre have a very narrow perception
of reality, and in turn, their lives.
They see things as they are and not how they can be."
Let me tell you a story.
There’s this girl I fell in love with, and just to put it out their, she’s way better
off financially than I am.
Apart from her being so beautiful, I really loved the way she thinks.
I could be sitting there telling her how stuck I feel, and she’ll come up with an idea
that she thinks will get me through.
Even though sometimes I didn’t go through with what she’s offered.
But in hindsight, it was really good advice.
One time when we both needed some extra money but had no means of getting it, she came up
with the idea of a challenge that, we should each start a small business or venture, and
see who could come up with the most money by the end of the month.
To cut a Long story short, that was her way of saying, "Let's get this money,".
I guess that’s what helped me grow.
It’s the same way with your friends.
Having positive-thinking friends isn’t enough to level up.
You need friends who will make you act and yearn to see you grow.
You need friends who hate income security or stagnation and enjoy the discomfort of
growth.
In a nut shell, you need friends who will challenge you to grow, and who will celebrate
your victories.
Principle #3.
Specialized craft I still remember the excitement I had on the
first day I caught a basketball.
It felt amazing because even though I didn’t know a thing I was doing, I was pretty much
the best in our crew.
Later, my urge to get into the sport grew when I found my uncle with a photo of my dad
when he was on the junior basketball team.
That’s when I told him I do play sometimes, but surprisingly, he responded, "Don’t think
you’ll be as good as me son."
At that point, I didn’t bother standing up for what I wanted because I’m from a
culture that requires submission to be top notch.
I gave it up until I got to high school and still turned out to be pretty good.
I know this is not the best inspiration you’d want to hear, but the point is, when you focus
on what you think you do best, don’t let anyone tell you differently.
The more persistent you get, the more perfect you become, and sooner than later, you’ll
be one of the best.
Scott Adams once said that every skill you acquire doubles your odds of success.
Instead of giving up on your skill at the slightest discouragement, then going to try
out another, focus on what you believe in.
With time, you’ll get the desired exposure and you’ll be earning your bread, and before
you know it, this skill will transform into a highly monetizable skill.
Principle #4.
Be mindful of how you spend your time.
When I pass through the neighbourhood where I grew up as a kid, it still surprises me
how everyone remains so calm with no regard to how they spend their time.
One time I thought maybe they were just satisfied with how they were living, but again I got
the exact opposite answer.
In fact, they really lament being there, but they don’t know how to change and get out
of it.
One of the most valuable resources in the universe, that is universally distributed,
an equal among all, is time.
time is the most unarguably most valuable resource in the universe.
all of us have 24 hours in a day, but not all of us use these 24 hours equally.
some waste it, some don't know what they have, and if you utilize it to its full potential.
what do you do with your time?
think about it, this is probably the most important question in the universe.
If you manage to utilized your time, educating yourself in a craft or skill, learning the
fundamentals and principles, and finding real world applications for it, and hopefully this
is a skill that you can charge a lot for, and one that you enjoy too.
Then you're probably going to live a good life, knowing that one of the fundamental
pillars for existence is taking care of.
In conclusion.
While many people have the privilege of being born into the middle class, others have to
work their way up, which is totally understandable.
There is no shame in wanting more than what you have.
In fact, when you do get what you want, you’ll be an inspiration to the rest.
If you don’t want the same results as last time, then follow the simple principles I’ve
told you to transform your life, and hopefully generations to follow.
Thank you so much for watching, remember to fill the quick survey if you haven’t, and
with that said, have a great day.