If your family earns somewhere between about $48,500 and $145,500, depending on where you live, you’re probably in the middle class. Nowadays, being middle class often means working a regular 9-to-5 job every week. But unlike before, a middle-class salary might not be enough to retire on or build wealth.
Whether you’re tired of your daily commute or dreaming of traveling the world, there are ways to stop living paycheck to paycheck. By following a few simple steps, you can aim for greater success and maybe even find financial freedom.
Create a ‘Goal-Focused Financial Plan’
Starting with a goal-oriented financial plan sets the stage for success and breaking free from the middle-class rut,” explained Steve Rose, the brains behind.
Your plan should have clear, achievable goals, like saving up for retirement or clearing debts,” he advised. “Also, keep tabs on your spending using budgeting tools and review your finances regularly to ensure you’re making progress.
By taking these steps, you can ensure that your money is actively contributing to your goal of moving beyond the middle class.
Get on Budget
According to calculations by the comparison team from CasinospotFR “Having a budget is like laying down the groundwork for your financial journey. It’s crucial to keep tabs on your income and expenses, pinpointing areas where you can trim costs and channel more funds toward your financial aspirations,”
And here’s the thing: Your budget isn’t set in stone. It’s meant to flex and adapt as your financial circumstances shift.
Now, let’s talk about setting up an emergency fund. “An emergency stash can be a lifesaver during unexpected money hiccups, like losing a job or facing a medical crisis. Aim to squirrel away three to six months’ worth of living expenses in a separate savings pot,” advised Ryan.
Consider a Side Hustle
Echoing this sentiment, Jay Zigmont, PhD, CFP®, founder of Childfree Wealth, chimed in, saying, “Shoot for having three to six months’ worth of expenses saved up for emergencies. If your income is a bit unpredictable or you’re self-employed, lean toward the six-month mark. But if your job’s pretty stable, three months’ worth might suffice. Keep this dough in a high-yield savings account.
Now, let’s discuss the power of a side hustle. “Dabbling in a side gig can pump up your income and lay the groundwork for wealth-building. Choose something you’re passionate about or that has potential to bump up your earning potential. Think freelance writing, tutoring, snapping photos, consulting, or even kick-starting an online biz,” advised Rose.
Invest In Yourself and Your Future
Shawn Breyer, owner of The Hive Law, chimed in, saying, “To start amassing wealth, consider picking up a side hustle in your free time. It could be anything from freelancing to crafting a product or service that solves folks’ problems. The end game? Crafting a biz that could eventually replace your current income.
Whether you’ve got oodles of free time or just a smidge, there’s a side gig out there for nearly every situation.
Now, let’s talk about investing in yourself and your future. “Once your side hustle’s humming along, it’s time to put your money into assets that can churn out passive income. Think real estate, stocks, or other investments that rake in cash without needing your constant attention,” advised Breyer.
Pay Off Debt
Ryan added, “If your job offers a 401(k) or another retirement plan, make sure you’re kicking in enough to snag any employer match. Starting early and staying consistent with retirement investing can help you amass wealth over time.
He also underscored the importance of investing in assets that appreciate over time, saying, “Assets like real estate, stocks, and mutual funds can grow in value and bulk up your wealth. Consider teaming up with a financial planner to suss out the best investment moves for your financial dreams and risk tolerance.
Now, let’s tackle the debt monster. “Loads of debt can hold you back from financial freedom. Focus on squashing high-interest debt first, then tackle the rest. This move can save you bundles on interest and free up more cash to pump into wealth-building,” advised Ryan.
In a nutshell, reaching financial freedom is like scaling a mountain. You start at the bottom, take baby steps, and keep your eyes on the peak. It might not be a cakewalk, but with the right guidance and determination, you can conquer your financial dreams and bid adieu to the middle class.