The Incomes of the Middle Class

Reports from Wikipedia and the 2008 Census suggest that the middle-class income range is somewhere between $35,000 to

$50,000 per year. Read another set of studies, and these figures are between $22,000 and $65,000 per year. It’s no secret that it would be extremely difficult to live on either of these income levels in an urban area like New York or LA—much less feel financially secure. This experience is not what most people would consider a desirable situation.

The middle class is further divided into the upper and lower middle class. The upper middle class usually consists of people who have substantial assets and household earn- ings of over $1 million per year, although there is nothing to substantiate what makes $1 million the mark. I guess it just sounds good. Most people consider $1 million to be a lot of money—until they have it. Then they realize that it doesn’t go very far since a person’s decisions and considerations tend to change once he or she enters a new income bracket.

The people in the supposed upper middle class occupy noticeably higher positions in their offices and are considered financially more stable than many of their peers. This may very well be the case—until any sort of economic destruction occurs. Then we tend to see that even this group is unprotected. Admit- tedly, members of this group should experience a considerable rise in their incomes due to the economic growth of the nation in good times. They have higher disposable incomes than many of their counterparts in the lower middle class, which consists of people who have basic educational qualifications and an annual income of between $30,000 and $60,000. The lower middle class constitutes a large part of our country’s total population. This set frequently struggles to reach the upper middle class’s

level; however, when economic hardship takes hold, everyone gets pulled down.

A client of mine recently asked me via text message on the 26th of a recent month, “Grant, I have to net $10,000 to keep my doors open this month. How can I do this?” I happened to get his message during a Sunday football game, so I asked him, “Are you watching the game today?” He texted me back, “Yes.” I then replied, “What are you doing taking a Sunday off to watch the game?! You should be out distributing fliers, spending every second of every hour trying to create income in excess of what you need. And by the way, you need $100,000 in net profits—not $10,000.” “Sunday,” he responded, “is a day of rest.” Oh boy. I shot back, “It is for those that worked the other six days! The Lord wasn’t talking to the people who are short on funds and haven’t earned the day of rest. So turn off the game, get off your couch, and go get the money you need! Quit being a middle-class slave, and go create the income you need to secure wealth and financial freedom—for yourself and your household and your company!” I think he got the message.

My client is at risk because he has been operating based on what he needs and therefore is just “getting by.” Unfortunately, this middle-class mentality will not create financial security. The banks dried up on him; he could no longer depend on credit for his cushion, and he can now depend only on his actions. This is the problem with many members of the middle class. They go after what they’ve deemed necessary rather than ever going really big. Most people believe that a comfortable middle-class life includes clothes, a house, a few cars, vacation time, maybe an upper-management position, and some money in the bank.

However, depending on the period in history to which we’re referring, the term “middle class” has had a variety of meanings—many of which have been and still are quite contradictory. It has referred to the class of people between peasants and nobility, whereas other definitions suggest that the middle class had enough capital to rival nobles. We’ve clearly come a long way from that meaning today. For example, in

India, the middle class is considered to be those who reside in an owner-occupied property, whereas a blue-collar job makes you middle class in the United States—and in Europe, that makes you a member of the working class.

An important distinction that I’d like to make is my own reference to “middle class” as a mind-set rather than an income level. Someone who makes $1 million a year may still adopt middle-class thinking and actions. It is more of a men- tality that creates the trap that will fail you. The middle class is, in large part, a goal that will not provide you with what you truly want. It is “middle”—normal or average—synonymous with the terms we’ve already deemed as highly unattractive.

But what does middle class mean to most people nowadays? In February 2009, authoritative weekly publication Tfte Economist announced that over half the world’s population now belongs to this group as a result of rapid growth in emerging countries. The article characterized middle class as having a reasonable amount of discretionary income and not having to live from hand to mouth as the poor do. It was defined as beginning at the point where people have roughly a third of their income left for discretionary spending after paying for basic food and shelter.

However, almost no member of today’s middle class has one-third of his or her income left for discretionary income. This group is currently being hammered by something called the middle-class squeeze—a situation in which increases in wages fail to keep up with inflation for middle-income earners. At the same time, the phenomenon fails to have a similar impact on the top wage earners. Add to that the fact that much of the supposed middle class’s wealth has come from assuming debt and home equity calculations that were more ink than real money.

Persons belonging to the middle class frequently find that their dependence upon credit—worsened by the collapse of the housing market—prevents them from maintaining a middle- class lifestyle, making downward mobility a threat to counteract aspirations of upward mobility. This is the gravity, resistance,

and unexpected conditions I mentioned earlier. This group then experiences middle-class income declining as jobs are lost. And for the first time in our history, we are seeing more men lose jobs than women because higher-paid males are being let go in favor of keeping their less expensive counterparts. At the same time, the prices of necessary items—such as energy, education, housing, and insurance—continue to increase while wages decrease. This kind of squeeze always affects the larg- est groups of people in a given population. The wealthy don’t depend on income and debt, and the poor will receive help for which the middle class don’t qualify.

For most people, being middle class means having a reli- able job with fair to good pay, consistent health care, a fairly comfortable home in a nice neighborhood, a good education (whatever that means) for one’s children, time off for vacations (this is highly valued), and money in a 401(k) that is growing and allowing for a decent retirement. Yet all of this—taken for granted for so long—is now in turmoil, thanks to a housing implosion and credit collapse. The existing middle class is being squeezed and hopes, at best, to hold on to or recover past achievements. This group’s average income is steadily decreasing. Its members’ jobs are in jeopardy, and their savings and investments have been put at risk. The greatly appreciated vacation of the past will probably be more like a visit to the neighborhood park.

What is the point of me telling you all this? Ask people in the middle class if this feels secure or desirable—and although they may claim that they’re grateful not to be “poor,” they will likely tell you that they feel more like a member of the work- ing class than the middle class. Consider as well the fact that the dollar is worth less today than it was yesterday and will be worth even less tomorrow. Someone who’s making $60,000 a year pays $15,000 in taxes. If that person is lucky, he or she is left with $45,000 a year—which is really worth only $32,000— for a home, schools, insurance, food, car payments, fuel, medical emergencies, vacations, and savings. Does this sound desirable to you? Middle class was a dream sold to countless

Americans as a good goal toward which they should strive. Yet in reality, it is really only close to “good”—and probably better described as a mousetrap with a big fat piece of cheese on it.

I contend that the middle class is the most suppressed, restricted, and confined socioeconomic demographic in the world. Those who desire to be a part of it are compelled to think and act in a certain way where “just enough” is the reward. The idea that one would only have enough to be “comfortable” or “adequately satisfied” is a concept that has been sold—by the educational system, the media, and politicians—to convince an entire population of people to settle instead of strive for abun- dance. However, it only takes a bit of waking up to discover that it is a promise without fulfillment. Today the wealthiest 5 percent of people control $80 trillion, which is more money than has been created in the history of mankind. If you knew that you had the same energy and creativity to make it to the next level, wouldn’t you give it a try?

CHAPTER

Obsession Isn’t a Disease;

It’s a Gift

and the support you want. In this context, obsession is like a fire; you want to build it so big that people feel compelled to sit around it in admiration. And as with a fire, you have to keep adding wood to sustain the heat and the glow. You obsess over how to keep your fire burning—or it will turn to ashes.

To create a 10X reality, you have to follow up every action with an obsession to see it through to success. You need to stay seriously motivated to take 10X actions every day. Though people take action constantly, we know that much of this isn’t the kind of action that’s going to get them anywhere. Most are doing nothing or have already given up, and others retreat in an attempt to avoid failure and negative experiences. Huge segments of the population are merely operating at nor- mal levels in order to get by and fit in. Each of these groups lacks the obsession to see their actions all the way through to success. Most people make only enougft effort for it to feel like work, wftereas tfte most successful follow up every action witft an obsession to see it tftrougft to a reward.

If you become obsessed with your idea, purpose, or goal, you will become equally addicted to the idea of mak- ing it work. Anyone who makes it his or her mission to create long-term, positive 10X survival will have to approach each moment, decision, action, and day with this level of fixation. After all, if your ideas do not excessively preoccupy your own thoughts, then how can you ever expect them to preoccupy the thoughts of others? Sometfting has to absorb your thoughts every second of every day—so what should it be? Be obsessed with something. Make your dreams, goals, and mission your mind’s and actions’ dominant concern!

The word “obsessed” tends to have a negative connotation because many people believe that obsession with something (or someone) is usually destructive or harmful. But show me one person who has achieved greatness without being obsessed on some level. You simply cannot do it. Any individual or group that accomplished something significant was completely obsessed with the idea of it. Whether it was an artist, musician,

inventor, businessman, change agent, or philanthropist, their greatness was a result of their fixation.

Someone once asked me if I’ve always been as obsessed with success and work as I am today. I answered, “Absolutely not!” At first, I was—until about the age of 10. Then I let it go and didn’t become obsessed until I was 25. I have remained that way—to some greater or lesser degree—ever since, and I regret those years I was not obsessed with my dreams and goals. I can tell you that my life has gone much better since I’ve been pas- sionate about my dreams and goals—even when things went wrong.

I recently saw a television interview with Israeli President Shimon Peres. Mr. Peres was 87 years old at the time and had done 900 interviews over the prior 18 months. His obsession with his mission makes him seem youthful and energetic— despite his age. Even those who may not believe in his mission have to admire his commitment to it, which is evidenced by his claim that “work is better than vacation—and it is impor- tant to have a purpose to wake up each day.” Countless truly successful people agree with the sentiment that their careers do not feel like work but rather something they love to do. That is obsession at its best.

Children are a wonderful example of inherent obses- sion. They are almost instantly fixated with any task they encounter—learning, mimicking, discovering, playing, and utilizing their full energy for whatever captures their interest. Unless some part of their development has been delayed, no child approaches his or her activities without thorough obses- sion and complete preoccupation of whatever they desire—be it a pacifier, a toy, food, daddy’s attention, or an urgent need to be changed. In this way, we see how obsession is a natural human state. It doesn’t become a “problem” until a parent, caretaker, teacher—and eventually, society as a whole— begins suppressing this fixation. They often make the child feel as if his or her commitment to a goal is wrong rather than something natural and very right! At this point, many

children begin to assume that their intense interest in life and discovery—their innate commitment to be fully engaged— is somehow wrong or unnatural. They have essentially been bullied by others—who have long ago given up on their own obsessions—in order to change their behavior. This is when a person moves from higher levels of commitment and action to “average” levels.

Lest you think I’m talking about something with which I have no personal experience, I should tell you that I just had my first child. I will admit that although her obsessive nature rears its head at inconvenient times for me, I never want to suppress that. It is my fervent wish that my daughter becomes obsessed with whatever her dreams are, never gives up achiev- ing them, and then spends the rest of her life improving on them! I love the feeling that comes with being obsessed about an idea, and I admire seeing others who are that fanatical. Who isn’t moved by the people or groups that goes after the things in which they believe with all their heart—who is so consumed by their ideas that they wake up to their dreams each day, work on them all day long, and then go to sleep and dream about them again all night? As soon as other people see the intention, conviction, and commitment in the passion- ate individual’s thoughts, eyes, and movements, they quickly get out of the way. I suggest tftat you become obsessed about tfte tftings you want; otfterwise, you are going to spend a lifetime being obsessed witft making up excuses as to wfty you didn’t get tfte life you wanted.

It is unfortunate that people with this kind of voracious obsession and fierce drive are categorized as off-balance, work- addicted, obsessive, and a whole litany of other labels. What if the world saw a person’s unwavering passion, undying obsession, and a bonfire-like desire to see through his or her goals as gifts rather than as defects or diseases? Wouldn’t we all accomplish more? Why do people have to turn a passion for excellence and an obsession to succeed into something negative?

It’s interesting, however, that once the obsessed finally do become successful, they’re no longer labeled as crazy but instead as geniuses, exceptions to the rule, and extraordinary. What if the world admired, expected, and even demanded that we all operate every single day with an obsessive focus on our goals? What if we punished the people who didn’t act with passion and commitment and rewarded those who saw their projects through to the end? Our society would be overwhelmed with inventions, solutions, new products, and increased efficiency. What if the world encouraged obses- sion instead of judging it? What if the only thing standing in the way of your greatness was that you just had to go after everything obsessively, persistently, and as though your life depended on it? Well—it does!

Would human beings have made it into space if a team of people hadn’t been obsessed with making it happen? Can a country become great without its leaders being obsessed with greatness? Would any remarkable leader water down his or her dreams and encourage the team to adopt a “take-it-or-leave- it” attitude? Of course not! Do you want your team drugged, lethargic, and robotic or obsessed with a positive outcome and victory? Never cut anything, never dilute greatness, never pull back on your horsepower, and never put a limit on your ambi- tion, drive, and passion. Demand obsession of yourself and all those around you. Never make it wrong to be obsessed; instead, make it your goal. Obsession is what you will need to set 10X goals and to follow them up with 10X actions.

Remember as well that making the goal too small won’t allow you to gather the right fuel or take the right amount of action to break through the resistance, competition, and changing conditions. Nothing great will ever happen with- out someone becoming obsessed with the concept—and then staying obsessed while approaching each task, challenge, and moment as vital, necessary, and a must. The ability to be obsessed is not a disease; it is a gift!

CHAPTER

Date: 2016-04-22; view: 633