7 Biggest Money Mistakes Keeping You in the Middle Class
Many people want to grow their wealth but find themselves stuck in the same financial bracket. Why is this the case? Often, it’s not just about how much you earn, but how you manage what you have.
If you’re looking to break out of the middle-class mold and journey toward financial prosperity, understanding the money missteps you could be making could make all the difference.
Anything from making poor investment choices to a lack of financial literacy can slow your financial progress. Here are what financial experts identified as the seven biggest money mistakes keeping you in the middle class.
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“Many middle-class individuals either avoid investing due to risk aversion or make poor investment choices based on short-term trends or insufficient research,” said Taylor Kovar, CFP, CEO of Kovar Wealth Management. “Start by educating yourself on various investment options. Diversify your portfolio to balance risk and reward. Consider long-term investments like index funds, which historically have provided stable returns. If unsure, consulting a financial advisor can be a wise decision.”
“A common trap is lifestyle inflation — spending income increases, often leading to significant debt,” Kovar said. “This includes overspending on housing, cars and other luxuries, financed through loans and credit cards. Adopt a budget that prioritizes savings and debt repayment. Live within or below your means, even as your income grows. Focus on building an emergency fund and paying off high-interest debts. This approach not only secures your current financial position but also paves the way for upward mobility.”
