The Difference

Do you know the difference between the poor and the middle class?

The poor have expenses only. He does not qualify for any liabilities like housing loan, car loan or credit card. Whatever the poor earns as income is fully used to pay his bills and expenses. The poor live in fear of losing money, try to be cheap and live frugally.

The middle class have liabilities besides expenses. The middle class guy even thinks that some of his liabilities are assets, that is, his house and his car.

If we have more money but increase our expenses and liabilities, we won’t be rich. The rich, poor and middle class go broke because they lose control of their expenses.

The following is a survey done by the US Dept of Health, Education and Welfare. By the age of 65, for every 100 people...

36 are dead
54 are living on government or family support
5 are still forced to work
4 are well off
1 is wealthy

The middle class have liabilities besides expenses.