Reason Behind Poverty of Middle Class People

Sanjay, a 31 year old young boy But  he never feel that he is young.  Because of the tiredness of the office and the house bought on EMI.  He keeps giving him tension all the time.  Just 4 years ago, he got a job.  His father had also invested all his provident fund in getting Sanjay and his brother to do engineering from a good college.

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Now even his father didn’t have anything to ask for help. But what was the hurry to take Sanjay home? Just 2 years ago, he bought a new car.  What was the need to take so much tension? The answer to this is very easy.  If Sanjay didn’t take all this then how would his relatives and neighbors believe that Sanjay has become successful in life?

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How they believe that he become a big man? New car, his own house, branded clothes, expensive phone etc… etc. Can you see any success without them? After paying Rs 30,000/ for EMI of  house he bought , and Rs. 12,000 for EMI of car out of 1 lakh salary.   After spending on his needs, he used to save at least 20,000.  During this time, Sanjay’s parents fixed his marriage.   Since the son is an engineer, Father is retired from government job, so marriage should be grand and last year, his neighbor Mr. Sharma Even being a clerk in electricity department, Spent  Rs 15 lakhs on his daughter’s marriage.

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Sanjay’s father was on a higher post. So how can he get married for less than 20-25 lakhs? To save his father’s honor, Sanjay took a personal loan of 10 lakhs.  Now what? EMI increased to 55,000.  Then got married, expenses increased Sanjay became 50 years old. Now his son was also studying engineering So that he gets a secure job.  This middle class legacy will continue.

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So,  this was Sanjay’s story. Let’s see the environment of Raju’s house.  Raju was an average student. His father had a gold and silver shop in Delhi.   He had a lot of money at home but even today, Raju’s family Lives in his old house. His father has the same desire.  Which he had taken 4 years ago.  Whenever Raju asked his father for a car he used to say, this car is yours and take it whenever you need it.  For college , bus comes , right?  What is the need of car?

Somehow Raju passed BBA And started working with his father.  One day his friend told him about a property on highway.  Raju talked to his father about it.  His father liked this investment and this way Raju bought the first property of his life.  After renting this property,  Raju made more properties.  But Raju still lives with his family In the same old house.  Now he has his own XUV 700.  

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So friends, did you understand the scene? If you didn’t understand, you will understand and the scene will change.  I am going to tell you 8 such mistakes Because of which India’s middle class can never free themselves financially.  Life is going to change.  No.1 Marriage is a special moment in everyone’s life.  The union of two families.  The beginning of a new relationship.  Marriage is not just a tradition for Indians But an emotion. That’s why, from jewellery to clothes, Food, and many things like suitcase etc.   Their business is also based on this,  Maybe that’s why, Indian luggage industry has the biggest market and its CAGR is 18% , which is much more than many other industries and its 84% sales are in wedding season.

 This is how you can understand the trend of big fat wedding from pre-wedding shoots to honeymoon.  People forget their budget and take loans and get married .  No one gets a chance to complain for people, their wedding should be memorable because of this, people spend their years of earning money on a 3-day function.  Still, some neighbor or uncle or brother-in-law takes out some loss.  That’s why, it’s better not to get your finances ruined.  According to me, marriage should be celebrated like an intimate function.

With some special friends and relatives.  But still, if you want a grand wedding, execute it with proper financial planning.  Finalize your budget and don’t let it exceed so that the wedding doesn’t get ruined.

Netxt is online purchase of everything.  If you want to order food, there is Zomato, if you want groceries  there is Big Basket , Watch, washing machine, clothes Whatever you want, you can get it in one click from e commerce websites.   India is the 2nd largest E-commerce market in the world.   Where there are around 800 million consumers and annually, there is a huge transaction.  But the shocking fact is that 60% of it comes not from a big city,  But from 2 tier cities and small towns.  Where 80% of India Is middle class People are so crazy about online facilities.  That instead of buying groceries from a grocery store at 500 meters. They have started thinking about Ordering online. But these facilities are in America and other countries because Like our country, there are no grocery stores where you can buy vegetables practically.   We don’t need this a few days back, Rahul Kabra’s post was going viral Where he pointed out the difference between Ordering online and offline. 

He ordered the same thing From the same restaurant And purchased it directly.  He got the same thing online At Rs. 689 But after adding offline GST It was Rs. 512.  Which means You are paying Rs. 100 to Rs. 150.   It’s not about Rs. 150 It’s about the habit of ordering everything at one click.   Which has pushed us towards Compulsive buying.  Where we are just buying things, a middle class person never understands how big this psychological trap is.   This e-commerce trap has put a huge burden on their pockets. If you ever  peacefully calculate the monthly expenditure on these apps, you will know if you are Using these apps or not No. 

Next thing is Brands.  The game of status Brands are the biggest Illusion of the world.   Brands are those people Who make jeans worth Rs. 1000 Into Rs. 4000, Rs. 6000, Rs. 10,000 The bigger the brand, the more People wear it.   This is why people are crazy about brands. This illusion is the fault of the film industry.  Because of which celebrities always use the stuff of top brands.  But the truth is their lifestyle is like this.  They get paid for this show off.  But if you take Mark Zuckerberg, Barack Obama Steve Jobs or Bill Gates You will never see the name of big brands Written on their clothes Like it usually happens in middle class branded clothes. In his 90% interviews, you will see Steve Jobs In blue turtleneck and jeans Why is this? The main reason is that they don’t care about show off.  On one hand, middle class people start showing off their money on the other hand, super rich people don’t care about show off.  They consider it a wastage of resources. I laugh the most when I see Shoes and clothes on EMI in online shopping apps.  Meaning your clothes will also be of loan.  While running after the status symbol , we are creating a virtual world In which everyone wants to look more successful than the other.   It is better to explore the local market instead of running after the status symbol. 

 Become an Indian brand , many brands provide you cheap and good quality stuff but because of one tag you have to spend 3-4 thousand rupees.  

If you want to buy a house, take a loan.  If you want to renovate a house, take a loan.  If you want to buy a car, take a loan.  Even people are taking loans for travelling.  Loans are getting like vegetables in our country.  According to Times of India 67% people in our country are taking personal loans To fulfill their wishes.  74% people come from middle class Salaried background.  This scenario may seem normal to you.  But taking loans on small things and filling 10-11% interest is slowly emptying your pockets.

Let’s see with an example , assume that for any reason you took a personal loan of 1 lakh For 2 years.  So right now 10.65% interest rate according to that you will get an EMI of Rs. 5000.  The total amount you have to pay Will be 120,000.  You may not have any problem with this.  But If you give this Rs 5000 as EMI On its SI for only 2 years, then your saving will be 136,000.   If you consider only 12% expected return – means the money you wasted to show your status.

You can make more money, with this you can understand if you have any bucket list then instead of taking loan for 2 years you can do small SIP for 2 years.   Then with this money you can fulfill your dream.

Fighting for education. My son will become an engineer – Indian middle class people are welcomed like this. People are so crazy that even after selling their land , they are not lagging behind . Teaching in good schools, colleges there is nothing wrong in this.  But before spending lakhs on a dream every parent should ensure that this is their child’s dream Or they are putting their own dream on it.  In year 2022 For NEET Approximately 19 lakh children appeared and for JEE IIT 10 lakh and in civil services 11.35 lakh Means 40 lakh Only. 10% of them are successful.  But it doesn’t mean that no one should try for these exams.

But before choosing any path you should check your child’s Interest, skills and monetary status. If you want to become a doctor, engineer Or IAS, IPS officer because you really like that field , then it’s fine.  But if you see it from a professional angle , means by earning money,  Then there are many other ways to earn money where you can earn more money.  In UP, for 10-12 years there was a clerk level job but it was filled by 3700 PHD holders. Means you can think what is the value of our formal education.  Your skills and success Is not dependent on a paper degree.  If you want to learn something, you can learn it from yourself.  From book reading, podcast , from people, courses etc.

This is called self-education. An average family spends 15-50 lakhs on their child’s education Which is one of the biggest expenses in their life.  If you see some other people, this expense goes up to 1 crore, but the question arises does this expense provide the same value and skill?

Maybe not that’s why I request all students and parents.  Don’t decide your son’s future by looking at Sharmaji’s son.  Do what is really good for him.

After house, marriage and education, the biggest liability which middle class people have is car.  Last year, car sales increased by 8.2% and record 4 million Means 40 lakh cars were sold Increasing petrol prices and increasing car sales.  This clearly indicates how middle class people take financial decisions without calculation and keep pushing themselves towards poverty.  I am not going to tell you how renting a car can cost you a lot because you can easily find that calculation on the internet.  But we will discuss when it is wise to buy a car and when not the first point.  What is your daily average travel ?  If it is less than 30 km, then definitely cab will be best for you.  And it will be very cheap.  If your average travel is more than 30 km then you have to buy a car.  But which one? The one which you can afford.

Don’t buy a car just by looking at its on-road price.  Consider its annual maintenance cost, Insurance and ensure your parking space.  If you want to be more budget friendly then you can check used car options.   Finally, whether you buy a car in cash or get it financed If you can comfortably bear the EMI burden.  Then it is a good idea to buy a car.  But if you are putting yourself in a financial burden and buying a car then definitely this car is useless.

Middle class is the 80% consumer of the world’s 80% products and services Businesses Whether it is toothpaste, car or schemes of home earners,  Everyone targets them.  Why? Because we believe in instant gratification, we just need everything as soon as possible. In India, YouTube has the most trending videos – How to earn 1 lakh in a day.  How to earn 50,000 at home Internet –  is full of such schemes and methods and youngsters who just want an iPhone like their friends,  Branded clothes and expensive cars, they get trapped in these schemes.   According to RBI, in 2023 about 3500 crore financial scams were recorded in which investment scam Part-time job scam QR code scam .  Why does anyone make us fool so easily ?  We stop our hard-earned money With a smile .  The hard work we do to register these complaints and to punish such frauds.  It takes half the hard work.  To understand and invest Whenever someone tells you the easy way to earn money.

Then you get alert use your senses. Without thinking Don’t do any transaction , neither in betting apps nor in intraday trading nor in MLM schemes. Because everything that promises to give you more money in less time It is gambling. I have never seen anyone Becoming rich by gambling If you like it Then like it quickly No.

First spending then investing often you have heard philosophers that rich is becoming rich and poor is becoming poor.  But no one tells why is it so. Everyone makes the world hate rich people hate poor people. Poor people think rich people are thieves. Our mentality Has become so biased that we think rich people have done something wrong.  While the other side of the coin is rich is becoming rich by spending like a poor. Investing like a greedy while poor is becoming more poor by spending to look like rich and investing nothing at all.

 Means we middle class spend to look rich and rich people invest to become rich.  I had a friend who was very rich , his father was a successful businessman.  He always used to say when you invest Rs. 90 Then spend Rs. 10 on your desires.  But what we do after spending Rs. 90 .  We think of investing Rs. 10 , this is the biggest problem of middle class.  For us investment is an option and for rich people it is a need and they get the result of this investment.  Every generation and middle class people keep themselves busy in the world of virtual success and go on the path of poverty. Now a pro tip whenever you want to buy something whether it is branded jeans or latest Iphone or car or house.

Do follow these two rules :-

No.1 the 24 hour rule.  Whatever you want to buy Just stop for 24 hours.  First of all write those 5 things.  Which you can do with it.  Then in the second column write those options. Analyze If you still feel that you have to buy then go and buy.  After following this rule , you can reduce your compulsory buying by 70% .

No. 2 the 2x rule.  This rule is very helpful in reducing Instant shopping and unnecessary spending while buying anything Just remember.  Can you afford to buy it twice means If you are buying 1 lakh iphone then you should be able to spend 2 lakhs.  Even if you buy it on EMI.  So in short do whatever you feel like who saw yesterday.  This rule is made to keep middle class people busy. So that middle class people spend more than their capacity. Shopkeepers keep running but you have to take this decision what do you want do you want to keep yourself busy For the rest of your life Or do you want to get Financial independence.

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