I’m going to tell you a classic story of working-class mind set.
It’s the kind of mindset that only cares about how much you make, but never gives a thought to what really matters…their net worth.
My coworker was telling me a story today about someone she knows who is always bragging about how much money she makes. The individual in question earns $80,000 a year, which is a very respectable income that is higher than the national average.
There is one very important caveat, however. The $80,000 is earned from two separate jobs, each paying around $40,000.
This mentality is classic working class thinking, for a few reasons:
1. Her income is not earned by having two careers – it is earned by having two jobs.
You could practice law during the day and teach at a university in the evening – this would be an example of having two careers as opposed to two jobs.
If this person loses one of her two jobs, her income would immediately be cut in half.
2. Bragging to your friends about how much money you make is classless! It’s something working-class people do.
And unfortunately, it’s a symptom of not understanding anything about wealth.
Wealthy people talk about money in terms of net worth – not salary.
I know someone personally that currently earns less than $50,000 a year and has a net worth of $200,000. That may not be on the level of anyone on the Forbes 400…but it’s more than the majority of the country.
The reason someone with such a humble income has a six figure net worth? Ownership.
She purchased two condos years ago when she was doing well, and held on to them while they appreciated in value.
Don’t get me wrong – we all want to generate as much income as possible. But your net worth is the key.
The next time someone brags to you about how much money they make…ask them how much their net worth is!
My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.
Click the image of the book at left to be taken to its Amazon page.
(Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)