Revelation about the Middle Class
Real Estate Determines Your Class
Why is real estate the most necessary piece? That’s the start of all this!!
Land is the only thing that’s always been here. Wars are fought to defend it. In the old days kings controlled all the land and those high up in government were granted land to manage villagers, grow crops, etc. so there were two classes: the rich and the poor. Only the elite owned land and became rich off of it. Poor people had to pay to live on the land and work it. In the old days the best chance you had to become rich was to marry up.
America came along offering poor people the opportunity to move and finally own land – wow! Now poor people were so happy to own land like the rich do that they gave emotional value to this asset rich people USE. Poor people made owning land emotional! Most poor people just wanted to live on their land and perhaps farm it, becoming an S. As more people came to America the land disappeared leaving just the joy of home ownership. The American Dream was born along with the middle class. Owning a home is expensive which forces you to work harder to pay for this “asset.” By working harder you get more money – what an easy formula! So then the rat race begins: “Well I was able to work hard enough to afford this home so let me upgrade to a bigger house since I have more money. Or I know I can always work harder so it’s OK to upgrade.” Working hard is the only formula the poor and middle class knows when they need more money for pay for increasing expenses. The middle class has even higher ones with their liabilities (houses, cars, etc.).
It seems to me that the middle class was created when poor people needed to earn more money to pay for all the expenses associated with owning a home. Unfortunately they did not know how to have money work for them or create assets. It’s like having a high-tech gadget with no instruction manual.
Since it’s emotionally empowering to own your own home, the masses are instructed to work very hard, earn money, save for a home. Then they continue upgrading their home as their income increased. Your home is your biggest asset! Hah!! We’re learning from Rich Dad Education that owning any SINGLE family house is a big problem. (Same with being a landlord of only a few single family houses). Your personal home will not put money in your pocket reliably (only strategy is cross your fingers crossed it appreciates). Real estate is a great asset when it has multiple units, land, etc.! So the rich know how to use real estate as an asset to continue getting richer and the middle class work hard just to earn enough money to buy an asset only to immediately misuse it as a liability!! Ahh!!!”
- Bad Credit Habits? The Face of the Modern Middle Class (lexingtonlaw.com)