Although today’s blog is short, it shares a resource I think you will find very interesting. While conducting some research on the topic of the middle class in America, I came across an article on the Pew Research Center website. It referenced data highlighted in an article it published discussing the continued shrinking of the middle class. In short, “The share living in middle-income households fell from 55% in 2000 to 51% in 2014.” Here is a question for you – are you part of the middle class demographic? We share a link below in the Tips to Read for you to find out.
In the end, however, these are academic numbers. Where any of us fall on the continuum of household income completely depends on our expectations of what we want our money lifestyle to be. The challenge to money smart consumers is if we want to move further up in household income, it ultimately requires us to increase our revenue stream.
Here are some questions for you to ask yourself if you want to increase your household income:
1. Are you in a career that offers opportunity for advancement?
2. Have you been doing the same job for more than 2 years?
3. Do you keep up with technology and advances in your field?
4. Do you have a good financial literacy foundation to manage your personal finances?
5. Have you considered what your Plan B will be if you can’t find a job if you lose it?
The discussion of the shrinkage of the middle class is a varied and complex one. If there is one truth that is clear, it’s that money smart consumers have to constantly be ahead of the curve in knowledge as to able to pivot in a career and how they handle their money. We all have to be cautious about not letting the business of life and the attention grabbing events in the news distract us from staying focused. We need to periodically make changes in the many aspects of our personal and professional life so as to protect our short-term and long-term financial position.
Tips to Read:
Are you in the American middle class? by Richard Fry and Rakesh Kochhar, Pew Research Center, May 11, 2016
We wanted to share some additional articles from Pew, NPR.org, and CNN Money related to the discussion of the middle class. Check these out below: