Reasons Why Middle Class Are Broke  as per Psychology

Wanna know the reason why you still stuck in society as a Middle class person. Here we will cover all the reasons keeping you poor.

1

Social Comparison 

Social comparison leads to overspending. Whenever you compare your lifestyle with rich person you will always overspend.

2

Lifestyle Inflation

Have you noticed that as your income increases the expenses also increases exponentially. It is proven that middle class people tend to invest in liability.

3

Instant Gratification

Middle class people want instant gratification by buying things which they don't need. You need to patient and wait for right time  to buy assets, this determines success.

4

Financial Literacy

Lack of Financial literacy leads to bad financial purchases and decisions. You must learn about personal finance or hire someone who can handle it.

5

Overconfidence

Many people are overconfident towards their financial decisions. Your financial knowledge can be incomplete. Consulting to CA and Financial institutions is good.

6

Financial Avoidance

Avoiding taking any financial decisions can be very harmful for your future. Investing in different assets is very important part of any financial journey.

7

Avoiding Risk taking

Every rich person has taken certain amount of risk in their life. Avoiding risky decisions and playing it too safe keeps you in middle class segment.