For some, no matter how hard they try, they cannot escape their financial orbit. This is the concept of upward mobility. For most countries or groups, upward mobility has remained stagnant. In this department, the United States lags behind other developed nations.
Have you ever wondered why is it so difficult to move up the socioeconomic ladder. It does not matter the class that you are currently in, to break into the next class is difficult.
Let us take a look at why it is so difficult to move from a lower financial orbit to a higher financial orbit. For simplicity, we will break the different financial orbits into lower class, middle class and upper class. Let us use moving from the lower class to the middle class as an example.
At Birth
When a child is born, many in the middle and upper class receive monetary gifts, parents/grandparents open 529 accounts, and the child is enrolled in a reputable daycare. On the other hand, the average child that is born into the lower class remains at home with family and rarely do the parents begin saving for college in the early years. Before these children enter elementary school, they are on completely different arcs.
Elementary To High School
By the time these two children enter elementary school, the middle class child has had years of daycare and pre-kindergarten training. On the other hand, the child from the lower class family has had some home schooling but not to the level of the child in the middle class. Further, based on where they are living, the child in the middle class will attend a higher ranked elementary school, middle school and high school, if not a private school. Now, look not only at the quality of education but also the type of connections that are being made and the circle of friends. There is no comparison.
Post Secondary Education
Let us assume that the child from the lower class family overcomes the barriers and attends the same university as the child from the middle class family. The child from the lower class family, on average, will take out more student loans and will almost always work during school. This inevitably means that students from the middle class and upper class are able to spend more time studying and participate in activities that potentially enhances their resume. Recall the students who are able to participate in unpaid internships.
Although some middle class and upper class students work while in college, the type of work tends to be different. These jobs tend to offer more connections and access. Recall the friends working in the cushy white collar jobs that give access to upper level management.
Even if students of middle class families do not spend their times studying and instead attend parties while in college, these social events are more than simply drinking. College parties are social events where relationships are being build. Bonds are being formed with like peers (other middle and upper class families).
Professional Life
Based on their background and experiences, realistically, who do you think will on average get the higher paying job? Recall those friends from high school, those parties where social relationship were being build, and those internships? Who will on average will have a more secure financial future?
The answer is clear. On average, the child from the middle class will be able to maintain their financial orbit and unfortunately, so will the child from the lower class family.
Why Is Economic Mobility Stagnant
Let us assume that the child from the lower class family overcomes all the barriers and manages to be in a high paying profession. Let us assume that he does everything correct (according to societal norms) and enters middle class orbit. Even with this great achievement and entrance into the middle class, individuals born into lower class families are less likely to build on this platform and exit the lower class permanently. Here, family and community plays a huge roll.
Family And Community
Consider the following factors:
- How does the child from the lower class family handles and interacts with family and friends who are not as well off?
- Are they seen as a sellout when they move to a better neighborhood or speak with a different vernacular?
- Are they at risk of being robbed when they return to the neighborhood?
- How about the envy and jealousy of their closest family members and friends?
- Do they succumb to the constant request for money or help?
- Do others in a lower financial orbit influences their activities and decision making?
If you are able to move into a new financial orbit, the above are all factors that individually you may be able to handle. However, these factors cause financial death by a million cuts. Over time, these different factors can have a detrimental effect on your financial future.
Have you ever wondered:
- Why do some professional athletes make the decisions they do?
- How do some individuals earn so much money and fall back into poverty?
- Why do some individuals who achieve success get involve with unscrupulous individuals?
If you have asked these questions and have yet to find an answer, you must look back to the community where these individuals were grown. Who were their friends? What influence does this community or members of this community have on them? And if this is still not clear, does Aaron Hernandez come to mind?
Escape Your Birth Financial Orbit
For most, to escape your birth financial orbit, you must first overcome all the odds and push on into the next financial orbit. Second, you must move away from your community. Moving away allows you to escape the potential negative influences and the mindset of your birth financial orbit.
Are you willing to take these steps? Are you serious about attaining financial independence and maintaining this status? Only you can take the steps necessary to achieve and maintain financial independence.
Upward Mobility
For some, no matter how hard they try, they cannot escape their financial orbit. Escape your birth financial orbit and continue on your journey to financial independence.
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