How to Achieve Upward Mobility Without Inheriting

Our society forces you to achieve upward mobility. Because of inflation, people are forced to keep moving forward or be left behind. Staying the same as last year means that you are slowly being left behind. Inch by inch. It’s more important than ever to work towards moving up in the world.

It’s no secret that the rich will continue to get richer and the poor will continue to get poorer. That is a fact that will never change as long as humankind exists. No matter how much we try to change that fact, it will stay as a fact. That fact hurts me because I know that everyone in the developed world has a chance to change their circumstance.

However, not everyone in the developed world achieves it. There are many reasons why. One of which is because it is more expensive to be poor. Another reason is because people love to ignore the little wins that could lead to big results. When you’re just starting out, results are slow to show.

Everyone can take steps to achieve upward mobility. It is not complicated. However, it is difficult to get there. Some people are going to have to put in more hours and work smarter than others just to get the same thing. I am one of those people who put in unthinkable hours to get to where I am today.

I honestly have no idea how I had that much energy in my younger years to get to where I am today but I am so thankful that I did. There are simple things that you can do like save and invest in order to get to where you want to be. It’s a long journey but it’s definitely possible.

What Does Upward Mobility Mean?

Upward mobility means to move and rise higher to a place of higher social or economic position. To put it simply, it’s an increase in class. The increase in class is most likely achieved by having more money, though it can also be achieved by having more assets.

For example, you could be the poorest person in the world in terms of cash but if you have billions of dollars worth of real estate, then you are still very high up in class. You achieved upward mobility. When I first graduated from college, I was very cash poor. I contributed 50% of my salary into my 401(k).

Since I started working in the middle of the year, I didn’t max it out by the end of the year. I was very cash poor at the time. I was living paycheck to paycheck hoping that some day it’s going to pay off. In five years, I’m happy to report that I am very happy that I did that right off the bat.

My 401(k)s’ balance ballooned up to a very healthy balance with almost quarter of a million dollars to boot. Although I was very cash poor, I was still achieving upward mobility because my illiquid assets were still going up in value in tandem. If you want to measure whether you are moving up in the world, measure your assets year over year.

It’s not a good feeling when after time passes, you find out that you’re moving down in the world. Take measurable steps in order to move up in the world. You don’t want to end your life wondering where all that time went to by the end of it all. You want to achieve meaningful progress towards your life.

How to Achieve Upward Mobility Without an Inheritance

You can achieve upward mobility by giving that social share button a very good slap! How do you know you slapped that share button good? When your friends can see this article show up on their social media feed. If this article does add value to your life, I can only ask you do share this article with your friends for me.

I try very thoughtfully to give valuable content for my readers so that their financial life is better. There’s significant research and my weekend time that goes away by providing this advice for free. All I ask is for you to help me out a little by doing a free thing like sharing this article to help me out. I would greatly appreciate it.

So with that said, let’s get into the concrete steps to achieve upward mobility!

1) Get in the Right Industry

You can factually and objectively be the best person at your current job out of everyone. However, that doesn’t guarantee a high income. In general, the best janitor still gets paid less than the worst investment banker. You can be the best person at the job but that doesn’t mean you’ll get there.

You have to get in the right industry. There are some of my friends who earned straight 4.0 GPAs in college who went into public accounting. While public accounting provides a basket of exit opportunities, you don’t make a lot of money during it. They made $55k straight out of college.

I did not graduate with a 4.0 GPA and was making close to $88,000 six months out of college, though a lot of that was deferred into the next year. It doesn’t matter if you are the smartest person on Earth. It matters if you get into the right industry to make a good income to achieve upward mobility.

The (arguably) smartest person in the world is Chris Langan. However, he is far from being the richest person in the world. You can be the smartest person in the world but that doesn’t mean it’ll translate to a good income and life.

2) Start a Side Hustle

These days, the internet makes it so that opportunities are unlimited. There are truly and absolutely unlimited ways in order to earn more side income. Who could have seen a world where we can make money by renting out a spare bedroom? Or by giving rides to complete strangers?

Or by starting a blog that potentially reaches millions of readers around the world? It’s an exciting time to be alive. The opportunities are truly unlimited. There is this 28 year old who made millions by buying things on Walmart and selling it on eBay.

All you have to do, in this instance, is to research prices, ship the product out, and then that’s it. Side hustles are truly wonderful inventions to achieve upward mobility. While your friends do social activities on the weekend, you are working for six months or a year to get your business off the ground.

Whatever is the case, add on additional income generating opportunities. Your future self will thank you.

3) Save and Invest Your Money

The tax rates are backwards. The government taxes the ones who are actually producing goods and services at a higher rate than the ones who just click buttons and tells their money where to go. That sounds so backwards to me. Capital cannot do anything without actual physical human labor.

However, that’s the way the world is and there’s very little chance of changing it. If you can’t change something, it’s better to get on the side of the winner than the loser. In this case, you should just be saving and investing your money like there’s no tomorrow.

That’s a very good way to achieve upward mobility. By generating income with a lower tax bracket. The first years will not feel like any meaningful progress. However, as you accumulate and build your savings even further, that’s when you should get there. This is a great way to get ahead that’s within your control.

4) Avoid Lifestyle Inflation

You will meet many people who does 1) above very well. They get into the right industry and are ver good at their jobs and moved into a $150k+ income category. However, they end up living it up and buying a Porsche, moving to a 1,500 sq. ft. apartment just for themselves, and more.

Had they moved that spending to their investments, it’s unbelievable how far they would be ahead today. Switching from spending $100 (-$100) to making $100 (+$100) is a difference of 200%. Otherwise known as, a ridiculously insane difference.

When you avoid lifestyle inflation, you can easily achieve upward mobility versus others who earn a high income. By far. There’s a vast difference between wealth and income and the ones who don’t know how to control their income are doomed. When you can control your urges is when you can live a great life.

5) Contribute to Retirement Accounts

The biggest reason why the rich get richer and the poor get poorer is because of retirement accounts. 401(k)s are a way to legally shield your income from current taxation. Some people just don’t have access to these kinds of accounts. The tax savings from contributing to retirement accounts is significant.

If you want to have upward mobility, make sure to contribute to the tax advantaged accounts. You will be amazed at how many people take these accounts for granted. Not only do they miss out on company match, they mix out on some sweet tax benefits that come along with it.

All of my friends made fun of me for maxing out my 401(k) accounts. I am completely fine with that. I’m quietly contributing to my 401(k) accounts while on my way to become a millionaire. It’s the greatest weapon that you can have to tackle the financial injustices of the world.

6) Spend Smartly to Achieve Upward Mobility

If you have to pay $500 for a course that gives you a 100x return, it’s worth it. It doesn’t just have to be courses but rather things that you buy that save you money over the long term. It can be coffee makers, crock pots, rechargeable batteries, and more. If the purchase not only betters your life but saves you money, it’s an infinite win.

A great way to achieve upward mobility is to spend money on things that will add value to your life. It can be either financially or emotionally. I estimated how much I spend on my car the other day and it comes out to about $1,000 per year in recurring expenses. Including the gas fees, mileage, and insurance.

However, to me, that expense is 100% worth it and I would spend it again in a second. When I was a student, I had to wait for the bus to get to my destination and I disliked it with a burning passion. Therefore, the convenience of having transportation when I want it is something that completely adds value to my life. It’s more than worth it.

7) Learn From Others Who Already Achieved Upward Mobility

Get your pride and ego out of the way. If you are looking for upward mobility, it’s a great idea to learn from others who’s already there. When I first started reading personal finance blogs, I absorbed everyone’s blog posts like a sponge. I didn’t disagree with anyone, I merely was aware of another person’s way of thinking.

Afterwards is when I first started to form opinions and what I thought worked and what I thought didn’t. All of their teachings and lessons allowed me to amass a very sizable net worth. I’m eternally grateful to them for giving me the roadmap to riches. They offered all of this advice… for free.

I still can’t believe it. There’s no way I could’ve figured out how to become rich without reading other people’s experiences. I would’ve been stuck day trading or trying to make big bets on individual stocks. There’s something to be said about a tight knit community who does so much to help others. It’s wonderful.

Learn from them, they are great teachers.

8) Be Patient and Give it Time

Then one of the last pieces of the puzzle is to be patient and give it time. The millionaire janitor was in his 90’s when he reached the $9 million net worth stage. Now that you know the tools and the steps it takes for you to be successful, it’s time to just let things be.

Things will turn out the way you want it to be as long as you’re making the right choices ever day. Some days, you can fail here and there. We all have our guilty pleasures from time to time. The overall picture should be a nice increase, whether it’s year over year or month over month.

There’s a famous saying in poker. “It’s only a matter of time before I bust you”. It applies here. “It’s only a matter of time before you get successful”. All you have to do is let things run on autopilot and leave emotions out of the equation. Then amazing things can only happen.

9) Pick the Right Friends

Your friends don’t have to add value. They can add zero value to your life and you will still love them and hang out with them. It’s when they start adding negative value to your life that you should evaluate whether your group of friends is good. When they are dragging you down from your goals.

I used to have friends who told me to spend more money. I politely refused. Then the next time we met, they encouraged me to spend more money again. And again, and again. It got to the point where they were harassing me to spend more money. I promptly cut them out of my life.

Pick your friends wisely. You are the average of the five most people you hang out with the most. Imagine being the average between billionaires, that’ll be something. Realistically, you will pick friends who fall into the ambitious category or friends who fall into the social category.

Whichever ones you have, pick the right ones. They are very important and influence your life more than you realize.

Upward Mobility is a NECESSITY

Society has an “up or out” model because of one word: inflation. You HAVE to get to upward mobility otherwise you will be left behind. It’s a fact of nature. As long as the world population increases, which it’s expected to continue to increase, inflation will happen.

It’s more crucial than ever to not remain stagnant year over year but to always keep moving onwards and upwards. You don’t want to find out that you’ve been left behind in the dust by society. You want to move ahead in a good pace, at least in line with how they are moving.

The world is an unforgiving place. People are too interested in their own lives to take care of you, let alone care about you. Instead of expecting other people to provide what you need, be self dependent and provide yourself. Figure out a way to move forward and how to profit from it.

When there’s a will, there’s a way. You are certainly more than capable to get there. Along the way, you will meet many interesting people who tell you that you can’t do it. Ignore them and plow ahead anyway. Upward mobility is a possibility no matter where you’re starting from.

When you view upward mobility as a necessity and not a luxury is when you are going to have the motivation to put in the effort. Put in the hours and put in the time. There are many others in the world who would chop off their left hand to get to your position. Are you going to let them take it all away from you?

Keep fighting and don’t lose sight of the goal.

How to Achieve Upward Mobility List:

• 1) Get in the right industry
• 2) Start a side hustle
• 3) Save and invest your money
• 4) Avoid lifestyle inflation
• 5) Contribute to retirement accounts
• 6) Spent smartly to achieve upward mobility
• 7) Learn from others who already achieved upward mobility
• 8) Be patient and give it time
• 9) Pick the right friends