FIX YOUR LIFE AND GET OUT OF DEBT! 💰 Break Out Of The Lower Class #Best Education Page #Online Earning

so today we're going to be talking about

how to break out of the lower class and

I just want to say the best way to do

this that I recommend to people is to

educate yourself or learn a more

valuable skill in order to earn more

money however this is not the strategy

I'm going to discuss in this video

because this is a way that anyone who is

in the lower class anyone who's not

making enough money can get out of their

current situation and get out of the

lower class so while I do recommend

educating yourself to earn more money

because that will help you in the long

run that's typically a long term

investment I mean if you decide to go to

college

that's a multiple year investment and

you can do things to improve your

situation in the mean time or in a

shorter amount of time so I wanted to

give more broad advice that would help

people in general aside from just

telling you to go out there and get a

college degree or get a certification of

some kind so this is a four step process

that should help you get out of your

current income situation if you're

someone who is falling into the lower

class if you don't have enough money if

your paycheck to paycheck and you just

can't seem to get by but the first thing

I want to do is actually define what the

lower class is so if we take a look at

the division of wealth here I kind of

drew this chart here as in that top

sliver there being the top one percent

so if you're in the upper class if

you're in the top 1% of earners

that's a household income of three

hundred ninety thousand dollars or more

and then we have below that as the upper

twenty percent that is the upper

middle-class that's a household income

of $100,000 or more but no more than

three hundred ninety thousand and then

we have the middle class the middle

class is the middle forty percent that

is a household income between 35,000 and

$100,000 and then we have the

lower-class and the bottom which is the

poverty line this video is this video

could help people in the middle class as

well who want to push their way into the

upper class or people who want to just

earn more money and be able to stop

maybe living paycheck to paycheck so if

you're in the lower class you're making

between 19,000 and 35,000 household

income and the poverty line is around

19,000 so below that you

or under the poverty line so it really

isn't necessarily me telling you how to

earn more money it's how to be more

responsible with the money that you have

it doesn't matter you could be in you

know you could be making $60,000 and be

paycheck to paycheck and you could make

$200,000 to be paycheck to paycheck

that's more on your financial education

and what you're doing with your money it

doesn't matter how much you make it

matters how much you spend and what

you're keeping and what you're doing

with your money so that's kind of what

I'm going to discuss with this video but

I want to throw a couple statistics at

you that were very surprising to me

first of all 49 percent of Americans are

living paycheck to paycheck so basically

all the money they have coming in goes

towards their expenses and there's

nothing left over at the end of the week

so what does that mean that means that

their one expense away one major expense

away from going into debt because they

don't have a savings their paycheck to

paycheck that just blew my mind that

half of the people out there wanting to

people that you see are one expensive

way from going into debt because their

paycheck to paycheck that is a problem

ladies and gentlemen that is a problem

and I think that if you guys are smart

about what you're doing with your money

you can avoid being someone who is

paycheck to paycheck so what does that

mean if 49 percent of Americans are

paycheck to paycheck what it means is

it's not just the lower class because if

we look at this the lower class is the

lower 39 percent but 49 percent of

Americans are paycheck to paycheck so

it's a division across all the different

classes it doesn't matter how much money

you make you could still live paycheck

to paycheck if you're irresponsible with

the money you're earning so don't think

this is just a problem for the

lower-class

you could be making a very small amount

of money but you might be responsible

with that money and as a result you are

actually saving money and you have

savings and you have a rainy day fund

and you are not what's considered

paycheck to paycheck which is good the

average debt per credit card in the

United States is four thousand sixty one

dollars and remember most of us have

more than one credit card so the average

balance being over four thousand dollars

is just astounding hopefully you're not

someone in that situation but if you are

I'm going to show you how to improve

that situation and how to stop living

paycheck to paycheck and kind of break

out of that lower class and maybe you

know make more money

so the first thing you can do that I

recommend is to pay off all of your debt

so how do you do this the first thing

you should do is make a list of

everything you owe write it down on the

list also write down the list of the

balances as well as the interest rates

and then pay off the high interest debt

first or do debt consolidation there

services out there

or they can collectively pool all of

your debt together hopefully at a lower

combined interest rate than you were

paying individually and then you start

making your payments you want to avoid

the trap of making the minimum balance

as far as the payment on your credit

cards because when you're doing that

you're paying mostly interest and barely

any principal that's a surefire way to

be paying that card off for many years

so you want to make sure you're paying

at least the minimum balance and

hopefully significantly more and then

what you also want to do is if you're in

the process of paying off debt if you're

in the process of paying off your credit

cards stop using your credit cards don't

use them at all okay so I just want to

give you guys an example here of what

credit card debt looks like if you're

someone who's not familiar so the

average credit card interest rates on a

low to high range the low range average

was thirteen point two four percent per

year and the high range is twenty two

point nine nine percent so let's say

you're someone who is in a serious

problem okay you have fifty thousand

dollars in credit card debt how much is

that burdening you how much is that

dragging you down is this the reason

that you're in the lower class is this

the reason you're not able to save up

money and maybe pay for a college

education or get yourself moving because

the thing is when you invest in yourself

that costs money so if you're someone

who wants to invest in a college

education you need to save up the money

to do that so maybe you're trying to

improve your situation but you don't

have any money

maybe it's because you have debt

dragging you down so if you have $50,000

at thirteen point two four percent

Interest you're paying six thousand six

hundred twenty dollars a year in

interest that's how much you're paying

every year without is one penny of

principal and a zero dollars of

principal right there that is all

interest or five four two fifty one

dollars a month for some people that's a

car payment a very expensive car payment

for others and maybe your your rent or

your mortgage depending on where you

live but let's say you're on the high

end you're on the high interest rate

average of twenty two point nine nine

percent at eleven thousand four hundred

ninety five

as a year before you even touch the

principle that $50,000 that's almost

$1,000 that's 958 dollars a month that

that person would be paying in credit

card interest because their $50,000 in

debt that is why it is crucial to get on

top of your debt before you do anything

else because that's where your money's

going that is where your money is going

if you if you are paycheck to paycheck

and you're in debt you need to get rid

of that debt and stop contributing to it

by getting rid of those credit cards

that is the first thing you need to do

if you're trying to improve your income

situation all right so now that you are

getting your debt under control what is

the next step the next step is to budget

your money so what do I mean by this

it's very simple I want you to collect

all of your bills your statements as

well as your receipts now if you're

someone who is not keeping these things

I want you to start doing that today

okay

get a shoebox hopefully a little more

organizing a shoebox get a system to

organize all of your bills all of your

statements and your receipts if you have

online banking you can get a history of

all of your statements and oftentimes

their itemized and you can sort them to

and see where your money is going if

you're not tracking it you have no idea

where it's going you can't just say oh

my money is disappearing because unless

you're getting it stolen from you like

the cash is physically being taken out

of your pockets then it's going

somewhere and you need to figure out

where your money is going okay then what

you want to do is determine your cash

flow so how much cash is going in and

how much cash is going out it's your

paycheck to paycheck it's all going out

if you're in debt more is going out then

it's coming in so if that's the case you

need to have less money going out or

figure out how to get more money coming

in but the first thing you need to do is

figure out how to get less money going

out because if there's a way to do that

that's a good way to get started and

then when you have more money coming in

it's more money in your pocket or more

money that you're going to be investing

we're going to talk about that in a

second

so what I also recommend is if you can

go back a couple months go back a year

if you're ambitious figure out where

your money is going figure out how much

money you're spending maybe you spend a

ton of money on the holidays maybe you

spend a ton of money in the summer going

to bars and doing things figure out

where is your money going what are you

doing with your money why is there more

money going out than there is coming in

and then what you want to do is list all

your expenses also remember that there

are monthly and annual

expenses so maybe you're someone who

pays your insurance every six months

maybe you pay for memberships to certain

websites certain services once a year

make sure you factor those expenses in

so if it's an annual expense divide it

by 12 and figure out what it would cost

you each month and then set aside money

for that but we're going to talk about

that in a second setting aside money for

planned expenses that's something else

you're going to have to do but I want to

show you guys something very important

here you don't many people don't realize

this but there's a difference between

fixed expenses and discretionary

expenses so what are fixed expenses

these are your necessary expenses these

are things you need to stay alive these

are things you need no matter what so

this is your mortgage this could be your

utilities so maybe that's your water

bill your power bill your gas bill

that's your insurance for your car your

insurance for your home that's any loans

you're paying back maybe you have

student loans

that's your household expenses that's

your groceries that's your car loan

things like that some of these fixed

expenses can be lowered for example the

amount you're spending on groceries the

amount you're spending on a luxury

vehicle if you have a car that is beyond

what you really need so then you also

want to look at your discretionary

expenses this is where you're really

going to find a lot of stuff you can get

rid of this is the optional expenses

guys this is the alcohol this is the

dining this is the entertainment the

luxury the convenience maybe you're a

smoker maybe you smoke you knows things

other than cigarettes those are things

that you are spending money on that are

optional expenses and if more money is

going out than is coming in you really

need to get control of your

discretionary expenses so I want you to

analyze your fixed expenses figure out

where you can lower those maybe you're

buying name-brand groceries and you

could settle for the do you know

whatever the store-brand is maybe you're

spending $100 a week on alcohol and

dining maybe you want to quit smoking

and you know save 10 bucks a day that's

where you need to find the money you

need to figure out where your money's

going okay and then eliminate stuff get

rid of stuff you don't need or you know

do less of it do less entertaining do

less dining once you've done that why

are you doing this I want to show you

guys what you're trying to accomplish

here you're trying to accomplish a

positive cash flow right now you have a

break-even or a negative cash flow if

you're in a bad situation so let's do

this as an example right here

this is

with $2,500 that comes in that's their

cash in every month okay and they're in

a paycheck-to-paycheck situation because

they have some debt they're paying $500

a month and credit card debt and they're

paying down their balance and then they

have two thousand dollars of expenses

all right so their first step if you

follow this is to get rid of your debt

so let's say over time they're working

on paying down their debt they get it

down to a $300 a month payment because

they're you know getting their balance

down and then they get to a point where

they have no debt at all they have zero

dollars in debt they're not paying any

money and interest now you have a

surplus coming in there you have a

surplus of cash that was originally

going towards debt that's now not going

towards anything so at first you are

spending it all on debt now you had a

two hundred dollar surplus once you're

getting your bills paid down and once

you're debt-free there's a $500 surplus

of money right there the second step

here was to budget your money that's

where you're taking a look at your

expenses so let's say you're someone who

has a lot of discretionary expenses you

have $2,000 going out so let's say

you're someone who decides okay I'm

going to quit smoking a pack of

cigarettes a day that's $300 a month

right there next thing you know you have

a $300 surplus plus your 200 because

you're down on your debt as well now you

have a $500 a month surplus now let's

say you figure out okay I have even more

discretionary expenses things I don't

need to be doing I'm spending a lot of

money on dining and alcohol you figure

out how to find another $200 a month

this is 50 bucks a week this is not a

lot of money that's one night out a week

for most people next thing you know

you're debt-free

and you found five hundred dollars worth

of discretionary expenses that you don't

need you now have a $1,000 a month cash

surplus but what do you do with your

surplus that's the biggest thing what do

you do with that the very next thing

you're going to do is set up a rainy day

fund because when do we use credit cards

we use credit cards when we're

overextended when we can't afford to pay

for something so you want to save up a

six month cash surplus enough money to

cover all of your expenses for six

months I don't care if it takes you a

year two years to save this up whatever

it takes you need this this is an

absolute necessity because you're

preventing the need for future credit

you're preventing this from happening

again and the way I wanted to show this

to you guys as well here if you take a

look at this what your idea here is to

burn the candle at both ends and shrink

both your debt

as well as your expenses but you want to

eliminate the need for credit cards in

the future and what you can do if you

need to draw from that rainy day fund I

recommend extending yourself a line of

credit paying yourself that interest

that's going to discourage you from

using it for things you really don't

need to this is for absolute emergencies

this is like you lose your job or next

thing you know your furnace goes out

although your furnace that's what I say

set aside money for planned expenses so

if you know your appliances or your roof

is going bad start setting aside money

for that and a separate account this is

like I lost my job type money okay this

is like dire straits I need to put food

on the table for my family this is not I

want the new iPhone or I want to go on

vacation and to discourage yourself from

doing that charge yourself a 20%

interest rate on that but pay yourself

that interest so let's say you have

$10,000 in there and you take money out

maybe you put 11,000 back because you

charge yourself interest and you just

build that cash cushion because you're

eliminating that need to use credit

cards in the future you're never going

to put yourself in this situation again

once you do that once you have a six

month rainy day fund what's the next

thing you want to do you want to invest

alright I recommend the first thing you

do is invest in yourself because what

you're going to do is you're going to

increase your cash in you're going to

increase how much money you're making

but with your most important part guys

you're not going to increase your

standard of living all right this is the

mistake that everyone makes this is the

step that nobody follows this is why

forty nine percent of Americans are

paycheck to paycheck because they

increase their standard of living they

make more money and they go okay I

deserve a nicer house I deserve a nicer

car I'm going to buy more things there

they're going to consume and as a result

they're going to have more expenses and

they're going to have more money in and

they're just going to break even you

could be breaking even on a twenty

dollar an hour job you could be breaking

even as a person making $200,000 you

could be making money as somebody with a

minimum-wage job it doesn't matter all

it all comes down to is your financial

responsibility at the end of the day but

I encourage you guys first to invest in

yourself the idea is to learn more and

earn more so what do you do you save up

you go get a college education you get

certified in something you start a

business you do something I've done I've

talked about this so many times on my

channel I

we throw new ideas that you guys as far

as things you can do to earn more money

so I'm not going to get into it in this

video just check out my channel you want

to maintain your standard of living

that's one of the most important parts

as we said as you earn more you want to

keep your expenses the same and you want

to stay out of debt and you want to

increase your cash surplus and what do

you do with that surplus you're going to

put any surplus aside cream what goes

into your rainy day fund in your planned

expenses into assets what are assets

that could be stock so it could be bonds

it could be buying houses you're going

to buy things that appreciate in value

another thing you want to look at is the

difference between assets and

liabilities if you don't understand that

you need to educate yourself on that I

should probably do a video on that as

well now that I'm saying that so I

probably will but you want to put your

money into assets things that appreciate

in value and then what you're going to

do is you're going to grow pennies from

dollars and reinvest that's called

dividends that's called earning a return

on your investment and reinvesting and

that's how people get freaking rich they

put their money to work they're not

working themselves and this is the big

picture guys this is how you go from

someone who is in the lower class to

getting out of your current situation to

being able to afford an investment in

yourself to being able to afford a

college education or certification then

you're going to figure out how to have

control of your money and then you're

going to have a surplus every month that

you're going to put into something

that's also going to grow in value

you're going to make money with your

money and you're going to get out of the

lower class you're going to get out of

your current income situation and there

it is that is the solution that's how

you get out of the lower class I hope

you guys enjoyed this video I certainly

appreciate those of you who stuck around

for the whole video I know this was a

long one

but it was packed with very good

information I think this will help a lot

of people and I hope you guys leave me a

comment below and tell me what you think

are you planning on following any of

these steps and if there's anything you

can add as far as tips maybe you're

someone who has been in a situation

where you were in debt and you got out

of debt let us know what tips you have

if you are new to my channel please

consider subscribing and as always I

thank you guys for taking the time to

watch this video

you

#Best Education Page #Online Earning

online earning,make money online, earn money online, online earning, online earning sites,

 make money online free, online money income, earn money online free, money online, best way to earn money online, online income site, money earning websites, best online earning sites, easiest way to earn money online, earn money payment bkash, online money income site