Yahoo Finance I Grew Up Poor: Here Are 6 Steps I Took To Enter the Middle Class
Part of reaching the much-aspired “American Dream” involves achieving the financial stability and comfort that comes from joining the middle class.
Reaching that lofty position is no easy feat if you come from a disadvantaged background; but, according to those who have done it, all you need are the right financial strategies.
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GOBankingRates spoke with Adam Wood, co-founder of RevenueGeeks, and Max Williams, founder and CEO of HeroBot, about their experiences growing up poor and the steps they took to enter the middle class.
“It’s difficult to break free from the class into which you were born,” Wood said. “Very few people succeed in achieving upward mobility in comparison with their parents.
“No matter where you are born, going from extreme poverty to luxury can be difficult. I grew up in a lower-middle-class family where financial issues were common. When I was a child, my parents struggled to provide us with our basic needs. We were often hungry and lived in a small rented house.
“The experiences of our childhood shape our brains, affecting the way we think and act.”
Williams noted that his own path was marked by determination, strategic planning and a series of deliberate steps that transformed his life.
“I grew up in a modest household where financial constraints were a constant challenge,” he said. “My family instilled in me the values of hard work and perseverance, but breaking out of the cycle of poverty required more than just these qualities.”
Below, both Williams and Wood share the concrete steps they took that allowed them to transition into the middle class.
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Becoming Financially Literate
“The importance of handling finances with care has been instilled in me since I was a child,” Wood said. “Knowing and acquiring financial literacy was one of the most important steps in my money journey. Reading ‘Rich Dad Poor Dad’ changed the way I think about money. Investing in assets that generate income and minimize liabilities can help individuals build wealth and achieve financial independence, according to Robert Kiyosaki.
“First and foremost, I prioritized saving and investing. I believe that knowing how to manage money and not chase money is the most crucial thing for young people to learn. No matter how much money you make in your lifetime, you will always require more if you don’t understand the difference between saving and consuming.”
Learn More: Here’s How Much the Definition of Middle Class Has Changed in Every State
Getting an Education and Developing Skills
“The first step toward escaping poverty is education,” Wood said. “My parents prioritized education and worked very hard to pay for our education, even though they were on a tight budget. I worked very hard on my academics to be eligible for scholarships, and I took advantage of the few local scholarship possibilities that helped me pursue a higher degree.
“To sustain myself and get experience, I worked part-time jobs in addition to my classes during my time in college,” he said. “Education and skill development may be quite important for anyone hoping to advance economically.”
Williams shared the same experience. “Understanding the power of education was crucial. Despite financial difficulties, I focused on excelling academically. I took advantage of every educational opportunity available, such as scholarships, grants and financial aid. I attended community college before transferring to a university, which significantly reduced tuition costs.”
Maintaining Routines and Writing/Reading Habits
“The secret to success is to live a disciplined and consistent life,” Wood said. “I found that writing down all of my ideas, objectives, and daily schedules greatly improved my skills. Reading excellent books like Robert Kiyosaki’s ‘Rich Dad Poor Dad’ and James Clear’s ‘Atomic Habit’ also altered my point of view.
“Because I began to see the world from new perspectives, these things helped me break free from the cycle of poverty,” he added. “Your behavior and perspective can significantly change if you join a gym and engage in daily exercise. The most important step in accomplishing anything is developing an ideal mentality.”
Finding Networking and Mentoring Opportunities
“Having a mentor and following their counsel can be helpful on the path to middle-class status,” Wood said. “I would constantly go to my instructors, employers and accomplished members of my community for support and guidance.
“Great relationships and opportunities can be found through networking. Join trade shows and other groups for professionals, and don’t be afraid to ask for assistance or guidance when you need it. It is vital to establish ties with people who can provide guidance and support.”
Financial Planning and Discipline
According to Williams, budgeting and saving was instrumental to reaching the middle class.
“I practiced strict budgeting and prioritized saving. I set clear financial goals and created a budget that allowed me to save a portion of my income regularly. This discipline helped me build an emergency fund and avoid debt.”
Investing Wisely
“As I began to earn more, I educated myself about investments,” Williams said. “I started with low-risk options like savings accounts and gradually moved to more diverse investment portfolios, including stocks and mutual funds.
“This approach helped me grow my wealth over time.”
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This article originally appeared on GOBankingRates.com: I Grew Up Poor: Here Are 6 Steps I Took To Enter the Middle Class
