You’re technically in the middle-class if you earn between $47,189 to $141,568.
For years, you could probably get by with a decent middle-class income, but now, inflation, debt, and interest rate hikes have unlocked a new level of financial discomfort.
Soon, the middle class won’t exist anymore. And when that sad day comes, only few will have uplifted themselves into the top 20% of earners, while many will fall into poverty.
See how to be in the top 20% making 80% of the money,
Or, consider the following from the International Monetary Fund (IMF) and World Bank’s recent meetings regarding global economic issues affecting the middle class:
- The International Monetary Fund (IMF)’s new outlook indicates a slowdown in global economic growth — from 3.5% last year to 3% this year — and a further drop to 2.9% next year. This is a downgrade from previous estimates for 2024. In otherwords, most people who think 2024 will be better could be in for a shocker.
- America’s historic $33 trillion debt burden remains a prominent concern. Investors are growing more nervous about longer-term debt relative to financial stability.
- The IMF warned that higher-for-longer-interest rates could worsen the situation for middle-class borrowers. Also, 30% of the world’s largest banks are vulnerable as the global economy enters a prolonged period of low growth and high inflation.
- The fight against climate change was discussed, with concerns that current subsidies-based policies failed to deliver net-zero emissions and could increase public debt. This could mean fewer opportunities for folks in the middle class.
- Despite the critical points raised in the meetings, there was no indication of new commitments to help the middle class deal with rising costs and debt burdens.
The bottom line:
Without massive action and change, future generations won’t know the middle class we grew up in. It’s unaffordable for one parent to work and provide for their growing family.
Homeownership is out of reach and for some, working two jobs barely feeds their kids.
With each passing day, the middle class’s existence becomes increasingly unattainable.
So we’re left with a choice:
Rise to the occasion or fall victim to it.
I chose to rise to the occasion over a decade ago. I beat the odds, and refused to fall victim to this government-induced social division. The good news is you can win too.