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And honestly, a lot of it comes down to afew cash flow mistakesthat are holding them back.
Thats just not gonna cut it if you want to build real wealth.
Youre Mishandling Your Paycheck Timing
The biggest issue Lokenauth notices is how people handle their paycheck timing.
Theyre living in this paycheck-to-paycheck cycle, even on decent salaries, he noted.
Lokenauth said he personally made this mistake early in his career.
His money would hit his account and poof it was gone within days.
The thing is, wealthy people think differently they immediately move money to investments before touching a cent.
Theyre financing new cars, buying the latest phones and upgrading appliances they dont need, he said.
Thats $45,000 that couldve been generating returns in the market.
Seriously, it hurts to see.
But most middle-class workers are stuck in the employee mindset, limiting themselves to trading time for money.
You Misunderstand Good vs. Bad Debt
The middle class also tends to misunderstand good versus bad debt.
It makes me want to bang my head against the wall, he said.
Hes watched countless people justify unnecessary purchases because theyre getting 3% cash back.
The math just doesnt work out, he added.
Theyre spending $1,000 to save $30, then wondering why they cant build wealth.
Most middle-class folks are still manually transferring money when they have extra.
Spoiler alert: They never do, Lokenauth said.
My wealthiest clients have systems that automatically move money before they can touch it.
Youre Deep in Lifestyle Creep
The middle class also has this weird relationship with lifestyle creep.
According to Lokenauth, every raise turns into a bigger house or fancier car.
He did this himself got a $10,000 raise and immediately upgraded apartments.
Now he realizes that was pure insanity.
Lokenauth observed that the key to building wealth is keeping expenses flat while income grows.
He explained that the middle class typically monitors their money monthly, while the wealthy track it daily.
Theyre reactive instead of proactive, always playing catch-up instead of planning ahead, Lokenauth remarked.
Thats why I now check my accounts every morning with coffee its completely changed my financial game.
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