The American middle class shrinks. While 61 % of Americans considered the middle class in 1971, this number decreased to 51 % by 2023, according to PEW Research (1).
Pio defines the middle -class families as those that contain two -thirds of average family income income in the United States, which is about $ 80,000.
Mark, 40, lives in a technician -class technician in Ethaka, who is technically a middle -class, with his salary of $ 60,000 annually, but he does not feel financially safe at all. Mark has no debts, but he has only $ 10,000 in emergency savings, and he lives in a single bedroom apartment. He is concerned that some of the crisis, such as losing his job, or a healthy emergency that can be drowned in serious financial difficulty.
If you feel the same thing about your financial situation, here you can do to become more financial stable, prepare for a possible future emergency, and start building wealth.
PEW Research reported that the growth in the income of the middle layer has decreased behind the growth of income in the top layer, and the share of the total American income that the families keep within the middle class. The middle layer share of all family income is only 43 %, while 51 % of the population is the middle class. Its share of income is less than its share of the population, because the middle -class families did not keep pace with high income families.
While the middle -class lifestyle means a nice house, two cars, a bouquet, and some money in the bank, this is no longer the case.
To what extent can the middle -class members extend their dependence on the site, as well as the end of the scale their income decreases. As a result, it really doesn’t matter the category you are when it comes to your money. What matters if you feel safe in the amount of money you have in the bank, and whether your income extends enough to cover what you need. If not, you need to make a change, regardless of whether you are first, medium or upper.
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So, if you find yourself in the middle layer but you always feel that you are one emergency, away from the financial collapse, you will need to make some changes in the way you manage your money.
First of all, you should live on a budget that gives priority to savings. The only way to become more financial safe is to reduce unnecessary spending and dedicate some of your money to build Emergency Fund It can cover three to six months of living expenses. This will ensure that you have money to cover not only slight emergency situations such as car repairs, but the major like a job loss.
To build this budget:
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Start by tracking your spending for 30 days to find out where your money is spent now, and where you can trim it.
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It aims to save about 20 % of your income, while providing money first to emergency savings.
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Deal with savings as an invoice “must be paid” and reduce your other spending accordingly to pay yourself first. This transition to your entertainment budget may mean, but you can also search for ways for that Reducing your facilities, insuranceAnd other necessary expenses.
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Find ways to increase income to make your savings goals easier, such as taking side bustle to enhance your profits.
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Ensure that you do not carry debt, the benefits payments that can danger reduce your savings budget.
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Be serious about transferring as much additional money as possible in savings, including a surprise such as tax recovered amounts or cash gifts.
It is better to automate the transfer of money to your savings accounts so that the emergency box has three to six months of expenses. Once you get a strong emergency savings and adopt a retirement box, it is more likely to feel that you are living in a stable middle -class life.
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(1). Pio Research Center. “American Class Case”
This article only provides information and should not be explained as advice. It is provided without guarantee of any kind.
