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In this week’s Independent Newsletter, we’ll get into:

• An accountant explains the 7 middle class habits keeping you in the rat race

• What’s happening at Carry? We’re hosting workshops on Paying Less Taxes for Business Owners, Tax Saving Strategies for Expats + Nomads, and Personal Finance & Taxes for US Visa Holders & Immigrants

Accountant Explains The Middle Class Habits Keeping You in The Rat Race

In her latest YouTube Video, Nischa goes into what keeps people tied to a job they dislike to sustain their current lifestyle, while their life goals and ambitions are left in the background.

Here are the 7 habits and how you can avoid them:

1. Working for less than you’re worth

It’s common for employers to pay their employees less than they deserve (like 3-4% raises which is less than the rate of inflation).

Middle Class Habit: Accepting this because it’s comfortable 

Level Up: Moving on and finding a new job elsewhere could be the best decision

Moving between organizations typically gives you a 10-20% raise. 

2. Buying more than you can afford 

When people get their first full time job, a promotion, or bonus - they tend to upgrade 2 things: leasing an expensive car or using a bank loan 4-5 times their salary to purchase a home.

1) Car

Middle Class Habit: Keep working and paying off the loan 

Level Up: Buy a car outright or make sure finance payments are within 15% of your annual salary

2) Home 

Middle Class Habit: Buy more home than you can afford

Level Up: Don’t spend more than 28% of your income on your mortgage payments 

If you’re a business owner, you may be able to write off parts of your home office or car - you can learn more with our free tax hacks guide here.

3. Relying on one source of income

By having one source of income you’re one incident away from not have any incoming cash flow.

Middle Class Habit: Just rely on your day job

Level Up: Diversify your income stream - start a side hustle, investing, etc

4. Ignoring the importance of saving for old age 

Not investing means losing out on money compounding.

Middle Class Habit: Letting a lack of resources or knowledge of what to invest in or what’s right for you, stop you from starting

Level Up: Start learning and seeking out different resources that can help you.

PS. Carry let’s you automate investing through our robo-advisor, full access to a financial advisor, and we have a boatload of other resources. Try it here.

5. Consumption vs Production

Money will come into your life (income) because you’ve produced some sort of value. And it will leave when you consume something (expenses).

Production - Consumption = Financial Health 

The average American has a debt balance of $96,000.

Middle Class Habit: Maintain this lifestyle 

Level Up: Recognize how this impacts your financial position and reduce consumption while increasing production

6. Ignoring Financial Literacy

Mastering finances has a huge impact on our lives whether we like to admit it or not. Financial wellbeing plays an equally important role in our enjoyment of life.

Middle Class Habit: Don’t bother developing a knowledge base which makes it harder and harder to start.

Level Up: Understanding tax rules, what your income and expenses are, how to get the most value out of your money.

7. Doing what everyone else is doing

We’re under pressure to spend whatever your income level is.

Middle Class Habit: Buying to impress others rather than for your own happiness.

Level Up: Figure out why you’re making money and working hard. What do you want to achieve and how do you want your life to look.

You can watch the full video here:

What’s Happening at Carry?

Here’s what you can expect in the coming weeks

See the full list of events here. ⏰

Want More?

Still can’t get enough? Well, we’ve got you covered!

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If you want more resources on building wealth as a solopreneur/entrepreneur, check these out:

• The Solo 401k handbook 

• Common Solo 401k FAQ

• What is a Solo 401k?

• How to Open a Solo 401k

• Solo 401k Contribution Calculator