Taking all the surveys and statistics on the middle class into account, it can be said that it is almost a vanishing breed. Despite all the discussion and attention on this particular topic, the definition of the middle class is still unclear because every individual wants to be categorized into it, irrespective of how much they earn. There exists no official financial standard to define the middle class. However, as has been defined by the Middle-Class Task Force, set up under the Obama Administration, the segment of the population in America concerning six financial aspirations, considered true and effective, can be characterized as middle class. Check out those six points that will tell you if you are already in the middle class.
Home Ownership
Having a home in one’s name is truly a dream of every American. Moving from renting a house to owning one is considered to be a sign of prosperity and achievement. The median price of homes differs from one state to another. Therefore, the ability to own a house varies with the geographical location.
Car Ownership
When you own a car, you are free to move anywhere you want. You also get the luxury to avoid the limited options of mass transportation. You do not need to wait for the buses anymore and can also steer clear of the subways. However, the costs of four-wheelers vary from one model to another. For you, a second-hand Hyundai might be suitable, while for another, getting a brand-new BMW might be the goal.
College Education
Middle-class families have one basic thing on their minds, and that is to help their kids move ahead in life and career. Parents will have to shell out something in the range of tens to hundreds of thousands of dollars for their kids’ college education. The price tag depends on the quality of education in a college or university.
Retirement Security
Everyone waits for the day they will retire. That’s the final goal as retirement is considered to be a reward for all the hard work that you do for several decades. The savings you garner are to ensure comfort and security in your later years and can be different from others. While some spend wisely to amass a significant sum at the time of hanging up their boots, some are spendthrift and fail to accumulate the necessary.
Healthcare Coverage
If you belong to the middle class, getting healthcare for the family will be one of your primary objectives. The cost of medical healthcare and prescription drugs are quite high and tend to arise from time to time. Therefore, getting yourself enrolled for healthcare coverage is necessary. Moreover, without healthcare coverage for yourself, you might be facing a serious financial hurdle in case you are injured or severely ill.
Family Vacation
A family vacation is always one of the staple forms of relaxation for middle-class families. Going on vacations shows that a family has enough disposable income, and is quite successful in their careers to take out some leisure time from daily work. Vacations are cool.
How to Get in the Status of a Middle-Class?
You will face a lot of challenges on your path to obtain the status of a middle-class, but through some proactive measures, you can fulfill your dream. Budgeting is, of course, one of those essential steps. Being aware of monthly expenditure will definitely help you in the long run while are trying to cut down on your spending.
Planning is absolutely crucial, especially when it comes to your kids’ college education. Choosing whether to send them to a private college or a state university, considering the scholarship options, and other details will help you et an accurate financial estimate. Working is definitely a requirement. If you want to boost your earnings, set up a side business or opt for a second job.
There is no financial standard to define a middle-class family. For the majority of the population, the middle class is nothing but a standard of living.
