9 Things That The Poor and The Middle Class Get WRONG About MONEY

***In case you have not yet read our article on The Poor, The Middle Class, The Rich, and The Abundant, take a quick look at our previous article entitled, “Why The Poor and Middle Class struggle.” Reading that article will help set the context, and lay the groundwork for what we are jumping into today. If you don’t take the time to read it, you run the risk of fundamentally misunderstanding this whole article. When we reference the Poor, Middle Class, Rich, and Abundant, we are not simply talking about financial standing.***

We need to fix what is wrong if we want things to go right.

When about to endeavor on a journey, it is wise to prepare ourselves for potential elements and threats.

To have what is right show up in our lives we have to fix what is wrong first.

If you are in adversity and pain, this article will come as a boon to you and your situation.

Or perhaps life is pretty darn good right now, and you are feeling a little like this. If that is the case, you may be wise to take some advice from the Former President of The United States, John F. Kennedy who said, “The time to repair the roof is when the sun is shining.”

There has been much debate about what makes the difference between “the have’s and the have not’s”. Most of this commentary ends up in finger-pointing which is typically less than productive and does not move anyone forward.

This article will do just that, help you and me move forward in productive ways. It will also pull back the curtain on some of the critical elements that create and build wealth. At first glance it may seem common sense, we may even have an intellectual understanding of these points. However, the challenge in life and in money is to bridge the gap between what we may intellectually know and what we actually do and implement. Oftentimes there is a great distance between what we know and what we do. An honest and critical evaluation of self will bring to light newfound insights and execution steps.

What are these 9 Mistakes that the Poor and the Middle Class make?


1. Choices

The Rich and the Abundant make different choices than The Poor and Middle Class. I think we all know, but tend to forget that the decisions that we make, even the seemingly small and insignificant ones, will determine the quality and direction of our lives. We would be wise to start, if we have not already, to identify what choices we are making now that are not taking us in the directions we want to go. Then to identify those choices we can make that will take us where we ultimately want to end up. Read on for more details about these choices . . .

2. Attitude

The Poor and the Middle Class do not see, or believe, that the stepping stone to their future is right here, in front of them. It is found in the present. They fail to see that they can do something now. Far too many people have turned down building a business, or investing in real estate because it would only create “ONLY” a few hundred dollars of monthly residual income. If a person was to take action and increase their residual income by just a few hundred dollars a month. A few years down the road that person could quit their day job if they wanted to, get out of debt, go on that trip they have always wanted, or a host of other life-fulfilling activities. The Poor and Middle Class underestimate the power that little steps can end up creating big results.

mike-wilson-1831963. Lack of courage

When The Poor and the Middle class come across “The Deal of the Decade,” they back down. They give in or give up. Why? because they have not invested in themselves to be able to trust their decisions. They are so mentally tired from making poor choices again and again that it becomes a self-fulfilling prophecy.  It’s important to understand is that we aren’t born with endless courage, but something that is learned.

4. Investing in their Education

I am not merely speaking about High School or a University Education. I know tons of people who went through higher educations programs and haven’t picked up another book for years!  Sometimes the Poor and Middle Class are closed off to learning in new ways. One thing I have discovered is I can either invest some money to learn and be trained by a mentor. OR I can miss out on, and even lose money, by just trying to figure it out on my own.

As Brandon Broadwater puts it, a person can, “Spend your money learning, or lose your money learning, either way you’re going to learn.” Worse yet, most of the time when trying to figure it out on your own most people will have inconsistent, hit or miss, results. The middle class, and certainly the poor do not put in the time to learn about money. Rather they spend most of their time working for it.


5. Financial Investing

Far too many middle-class investors only play offense in their investments. They focus solely on asset and materialistic accumulation rather than focusing on critical aspects such as cash flow. They risk losing all of their “nest egg” to the poker players on wall street, they do nothing to invest in assets that are insurable. Instead of creating income producing assets, they tie their money up in mutual funds and 401k’s.

To paraphrase a Warren Buffett quote, “Middle Class investing is like waiting for sex until you are 50.” Meaning that if you are waiting until that magic day when you have “enough” money saved up is going to have you always chasing a horizon, one that you can never reach. I know plenty of retirees who, even after accumulating a significant sum have trouble spending that money because they want to leave it to their kids. Or they postpone and tie their money up for years when they could be diverting that money into things like a self-directed IRA to buy real estate, or starting a business that can not only be “your retirement” but also provide income while you are enjoying your working years.

By contrast, let’s talk a little bit about how the poor handle their “investing.” The Poor end up taking the approach of hoarding money so they can spend it on consumer items. They live in a mindset of scarcity vs one of abundance. It is safe to say, that most investors who have a Poor mindset do not save or invest in their future because they are too worried that they may lose what they now have. They will not let go in order to gain.

So what do the Rich and Abundant do?

They invest in assets that are insurable and have considerable downside protection, as well as asymmetric risk vs reward.

What do we mean here?

An example of an insurable asset would be real estate. If the real estate burns down, they have insurance for that.

An example of investments with downside protection would be call options, structured notes, or a properly constructed life insurance contracts.

Asymmetric risk vs. reward means that a person could be wrong, or lose 4 out of 5 times, and still get their money back or come out ahead. Most poor and middle-class investors take literally 100% of the risk in their wall street investing in hopes of a return. The Rich and the Abundant make sure that if their investment goes south they can recoup the vast majority, if not all, of the return.

The Rich and the Abundant search for investments that are backed by insurance or a tangible asset.

To better understand the investing mindset of the Rich and the Abundant, we need to think and operate like a bank. For example, a bank takes your money in a CD and gives you 1% return, for 1-3 years. They assess a penalty to you if you pull your money out early. So they are locking you in for a set time period (Bank 1, You 0). They in turn loan that money out at 3%-12%+ (Bank 2, You 0). Then at the end of your term you walk away with a few extra bucks (You, finally, 1) and the bank has likely made 100%-1,000% on your money. End result (Bank 3+, You 1).

So how do we do that?

Let’s say that you have cash sitting around and an associate approaches you about using your money to buy land and start a car wash business. You could structure the deal so that not only will you make a healthy return of interest on your money as long as the business does well, but you could also be the sole owner of the land and buildings if the business goes south. That way if the business plan works, you get a healthy return. If it doesn’t you have a real, tangible asset you can sell to get your money back.

This is just a quick sample of how the rich and abundant think, and use their money for investing.

If you are investing in Real Estate, don’t fall in love with the paint color, or the appliances, fall in love with the numbers.

When everyone else is freaking out because of a market crash, the Rich and Abundant have learned how to mitigate risk and are excited because everything just went on sale. To learn more about that, do a quick search about Sir John Templeton, and see how he made his BILLIONS.

Rich and Abundant people learn how to manage risk, and even use it to their advantage.

To again quote Warren Buffett, “Be fearful when others are greedy, and be greedy when others are fearful.


6. Pay too much in taxes

The Rich and the Abundant pay less, as a percentage, of tax. While the Poor and Middle Class pay, as a percentage, the highest amount of tax. Love him or hate him, take Donald Trump for example. His team of experts have used IRS tax codes to their advantage so that he has not paid federal income tax in years. The man is worth Billions and Billions of dollars and he has not paid Federal income tax in years. How? Because he and his team know the IRS tax codes to their advantage.

The Rich and the Abundant know the power of using a corporation or a business entity to their advantage.


A business owner has a powerful tax benefit. See the example below for illustration.

Employee vs Business Owner

Love it or hate it, this is how IRS tax code (and tax code in many other countries) works. So you might as well make use of the gift that is a business entity. However, owning a business is not the only way to lower your taxes. Talk to a qualified Accountant or Attorney. Don’t endeavor to go the DIY approach on this one. I know far too many people who are stepping over dollars to pic up dimes. They don’t want to spend a few hundred dollars for professional advice and they miss out on thousands of potential tax savings.

7. Don’t Understand Spending Patterns

Poor and Middle Class spend money they don’t have to make people think they are rich. The Rich and Abundant don’t always ride in flashy cars or wear expensive clothes because they don’t want people to know, or don’t care if others know that they are rich. So much of what we do comes down to status.

We may have the goal to be a millionaire so that we can finally spend quality time with our family. It is not really about the money it is about the emotion and the freedom to do what you want.

What if you could change your spending patterns and still achieve the same results?

The Abundant understand the psychology of money and spending patterns.

8. They have little to no Staying Power

The Federal Reserve has stated that  “52 percent of Americans would not be able to cover an emergency of $400.” Other sources have stated that 76% of Americans live paycheck to paycheck.

These are both examples of a lack of staying power.

So what does “Staying Power” mean?

Staying Power

Or as Brandon Broadwater has said, “The seeds of our actions need time to come to fruition.”

If you are starting a business you should probably shouldn’t quit your day job right away. If you are going to invest into the stock market, you should probably not invest your entire life saving and all of your available credit into the next hottest stock.

About the only thing that most financial gurus can agree upon is that it is wise to have an “Emergency Fund.” 3 months to 1 year of monthly living expenses saved up.

The Rich and Abundant do this by creating residual income, as well as multiple streams of income. That way if one of their streams of income dries up, they still have several others.

How do they do this? Most prevalently the Rich and Abundant own cash flowing real estate. They also own businesses, annuities, dividend paying stocks or bonds. All of these can produce a paycheck. Month in and month out, increasing their Staying Power.

9. The Poor and Middle-Class Lack Proximity

This is by far the biggest mistake that is made. Now with social media, it is becoming easier and easier to gain proximity. I don’t think that people stay in Poor or Middle-Class mindsets because they want to. They don’t stay Poor or Middle Class financially because that is what they have always dreamed of. It is because the people they hang out with and associate with are likely Poor and Middle Class too. They just simply need to be “shown how” from someone who has already done it. To be “show how” from someone who already lives in the Rich or the Abundant quadrant.

They just simply need to be “shown how”…

It is much less prevalent today as it once was, but it used to be common practice to become an apprentice to learn a skilled trade such as carpentry, blacksmithing, etc. Apprenticeship is however, still alive and well today in the medical profession. A person does not become a doctor unless they have done their “residency.” A soon to be doctor does not do residency because they don’t know what they are doing. They have spent years and years in schooling to learn and understand their trade. There is are elements that cannot be taught in a textbook, they can only be learned from working closely with, and being an understudy to someone who is a master at what they do.

Now if you are going to become something other than a Doctor, or another skilled trade, you will likely have a difficult time finding a person who is willing and able to have you be their apprentice. It is near impossible to find a mentor who is not only masterful at their trade, but who has the ability to teach what they do. There are plenty of top producers out there, but it is rare to find one who can teach how they achieved their success. This challenge is only compounded when everyone who has attended a weekend seminar, or read a book is calling themselves a coach or a guru.

This is where Brandon Broadwater and Master Your Power Within™ comes in.

Brandon and the Master Your Power Within™ team handcraft programs and courses to help students become masters in real estate, business and entrepreneurship, and master teaching.

Far from being an out of touch academic or philosophical lecturer, Brandon Broadwater teaches exclusively on topics with which he can be, and has been determined to be a masterful practitioner. He offers students of Master Your Power Within™ that proximity and mentorship that is critical to achieving success in the aforementioned areas in the most direct manner possible.

We will come to find that either we figure the money thing out and we get more freedom in our lives, OR money is going to drive us. AND will dictate most of our decisions.


Sir Francis Bacon wisely said,

“Money is a good servant, but a bad master.”


Now that you’ve learned the “9 Things that The Poor and Middle Class get wrong about money”. What are you going to do differently?


Tell us in the comments.


If you want to help others avoid these money mistakes, share this with a friend or on your social media.

Come join us at an event, hop on a results coaching session, or follow us on social media to start or continue your transition from the Poor and Middle Class to becoming Rich and Abundant.

From Broke to 6-Figure Income: The Prosperity Quadrant™

The journey from surviving to thriving lies in the mindset. If we don’t figure out some clear distinctions about 4 critical mindsets laid out in the Prosperity Quadrant™, we will surely fall short of what we could be, and do, and accomplish. We will certainly find ourselves struggling more than we need to.

Chances are pretty good that you or someone close to you falls into some of the traps that we will cover in the article here today.

The Prosperity Quadrant™

Prosperity Quadrant™

Master Your Power Within® Booklet with Prosperity Quadrant™ image.


So, what is this Prosperity Quadrant™? Here is a video of Brandon Broadwater, CEO and founder of Master Your Power Within® explaining a little bit about what we are talking about here today.

Below is a breakdown of The Prosperity Quadrant™. It is important to note that we are not solely talking about a person’s financial status, but even more so about their mindset and attitude.

The Poor

Those who are in the poor quadrant may find themselves constantly struggling to be able to keep their relationships together. They likely base their life decisions on circumstantial situations, rather than rock solid principles. The poor find themselves lacking and wanting in just about every facet of their lives. Their money will always run away from them because of mindset and patterns of spending. Their lives are dominated by scarcity. They likely have not achieved any high level of success in their endeavors. They are imprisoned by their attitudes and oftentimes their financial and physical situation.

The Middle Class

The Middle Class are those who have some aspects of their lives put together. For a financial example, a Middle-Class person is likely someone who has a strong steady job that has provided them with a decent income. However, they are likely spending beyond their means in order to impress others or to convince themselves of some sort of internal inadequacy or shortcoming. The middle class will do things to keep up with appearances, they are often driven by emotions and the views of others rather than working from a sound base of knowledge. The middle class may spend more on a home or a vehicle because of the way it looks, rather than what makes fiscal sense.

How can you know what someone’s priorities are? It is where they spend their time.

The Poor and Middle Class may say that money is not important. But they spend most of their time working for it. Their mentality is incongruent with their actions.

The Rich

The Rich are those who have achieved a certain level of success or status. They have probably accumulated a great deal of wealth in a financial sense, or a particular level of wealth in some aspect of their lives. Perhaps someone may be rich in their relationship with their children, but it could be in detriment to the relationship with their partner or spouse. Perhaps someone may be rich in aspects of personal health and fitness, to the detriment of their ability to connect with and influence others. The rich have indeed conquered foes on the field of battle, however, they may fail to realize that they have not yet won the war.

The Abundant

The Abundant, are those who have breakthrough success. They are those who live a life of harmonious balance. Those who are Abundant get on the other side of leverage, with both their money and their time. A key misunderstanding about those who are Abundant is that they may devote an equal amount of time or resources to all important aspects of their lives at all times. This is not so. A harmonious melody often has crescendos, ebbs and flows, even times of silence. This is what living a life of Abundance is like. Not sacrificing the relationships for the cause of making money, however realizing that money is still a very important and healthy part of life.

Those who are Abundant typically have access and proximity to knowledge, which is foundational and rock solid. The Abundant live a life of principle and as such experience a great deal of joy. When faced with adversity or tragedy, the Abundant will be able to keep perspective as to what is most important, and they will “stay the course.” Living a life of Abundance is something we all ought to strive for. As Brandon Broadwater says, “The Rich may have all the things that money can buy, but the Abundant also have those things which money cannot buy.”

The Ultimate Measurement Tool

The Prosperity Quadrant™ can be a great measurement tool, in documenting our progression and success. It can help us identify where we are at in our transition to greatness and abundance. By understanding and utilizing the quadrants we can better identify errors in our thinking and attitude. Oftentimes if we catch those thinking or attitude errors soon enough, we can prevent them from manifesting in our daily lives.

For more clarity on Abundance and the Prosperity Quadrant™, come to one of our live events, request a Results Coaching Session, or simply follow us on social media.

As Brandon Broadwater mentioned on the video, Master Your Power Within® is a company that works with individuals to help them transition to a life of abundance. Master Your Power Within® has literally helped thousands of people change their life for the better.

Whether that means increasing your income, investing in Real Estate, improving the relationship with your family and loved ones, Fixing Your Health, or finding out spiritual matters and principles that will improve the quality of your life. Brandon Broadwater and Master Your Power Within® can help. So come join us at a live event, or on a Results Coaching Session.
See you soon!