When you come from the middle class, you know from being a part of this segment of society that it’s more than just about the income bracket your family falls under. When looked at it only from that angle – neither rich, nor poor – being in the middle class doesn’t sound like it has any implications. But, it does, of course it does! To put it simply, being middle class is a way of life. There are certain aspirations, rationales, and spending patterns that belong solely to the people who hail from this class, and no matter how far we go in life, a lot of the values hammered into our brains as children don’t ever leave home.
1. Your earnings will always be a concern
Growing up in a middle class household surely taught you the value of money the way no economics lesson could. You know the power of a single rupee that is scrimped and saved at the back of the closet until it turns into a wad of cash used in emergencies. You also know the anguish that comes with a rupee that’s misspent, or the intense deliberation that goes into each purchase. When you start your own business, you’re no longer coddled by the regular salary that appears in your bank and the payment message that appears on your phone dutifully on the 1st. As a result, your financial safety will always be in the back of your mind (and the front too). Though being prudent is always good, the constant fear of not being successful or rich enough can stop you from making certain business decisions that require bravado, making you lose out on otherwise lucrative opportunities. Not having a safety net can be terrifying, but not letting your business grow to its potential could be worse.
2. Your future’s uncertain, and so is your child’s
When you’re not born with a silver spoon in your mouth, you’re privy to each sacrifice made by your family to get you the kind of future they envisioned for themselves. As a result, you’re also fairly clear about the kind of future you want your child to have and often remind yourself that you never want to deny the tiny rascal any opportunities that can add value to its life (such as studying abroad – oh, how you envied that rich classmate of yours!). But with running your own business, you can’t necessarily guarantee that you’ll make every dream come true, because for a fair amount of time, you’re not even sure if your dreams are coming true! As a result, you end up putting undue pressure on yourself and allow each and every failure to leave its mark on your decision making.
3. Your investment plans may be on pause
Mutual funds and ULIPs are the heroes of the middle class, so you probably know a fair bit about why investments are important. However, with starting a new business and being so unsure of your earning capabilities, you may end up putting your investment plans on pause. This is, perhaps, the largest risk you can face as a businessman in his 30s. Your voice of reason may counsel you about the merits of not cutting down the spendable money in your account when you don’t know how much you can spend, but this voice is being far from practical, or reasonable. Thinking about the future is just as important as thinking about the present, especially when it comes to finances. Investing in an insurance plan to protect your family can go a long way.
With a good investment which includes a sound insurance plan, you can protect your family and continue to meet their needs even in the worst-case scenarios.