10-27-2014
http://www.usatoday.com/story/money...heat-sheet-middle-class-cant-afford/17730223/
7 things the middle class can't afford anymore
So, who are the middle class?
In its discussion of historical middle class societies, The Economist reports, "Their members are neither rich nor poor but somewhere in-between. . . . 'Middle-class' describes an income category but also a set of attitudes . . . An essential characteristic is the possession of a reasonable amount of discretionary income. Middle-class people do not live from hand to mouth, job to job, season to season, as the poor do."
Diana Farrell, once Deputy Director of America's National Economic Council, told The Economist she thinks a middle class income begins at the point where a person (or family) has one-third of their income left over for discretionary purposes after they've provided themselves with food and shelter. In other words, someone who earns $3,000 per month would have $1,000 left after they've paid their mortgage or rent, utilities, and grocery bills.
Vacations
A vacation is an extra expense that many middle-earners cannot afford without sacrificing something else.
New vehicles
Very few people who earn the median income can afford to buy a new car or truck. Interest.com recently analyzed the prices of new cars and trucks, as well as the median incomes across more than two dozen major cities, and found that new cars and trucks were simply not affordable to most middle-earners.
To pay off debt
Our debt is growing faster than our income, and many middle class workers have trouble staying afloat.
Emergency savings
Most members of the middle class don't have at least six months of emergency savings, however, and some working people have no such savings.
Retirement savings
As of late, around 20% of people near 65 have not saved anything for retirement at all, and the majority of people 59% worry that they don't have enough money saved for retirement
Medical care
A Forbes article published data indicating that workers in large companies many of whom are members of the middle class "face nearly $5,000 in premiums, co-payments, deductibles and other forms of co-insurance."
During the past few years, these costs have had a large impact on working Americans. A report by Feeding America found that a shocking 66% of households say they've had to choose between paying for food and paying for medical care 31% say they have to make that choice each and every month.
Dental work
According to the CDC, nearly one in four adults between the ages of 20 and 64 have untreated dental caries (like cavities or infections).
http://www.usatoday.com/story/money...heat-sheet-middle-class-cant-afford/17730223/
7 things the middle class can't afford anymore
So, who are the middle class?
In its discussion of historical middle class societies, The Economist reports, "Their members are neither rich nor poor but somewhere in-between. . . . 'Middle-class' describes an income category but also a set of attitudes . . . An essential characteristic is the possession of a reasonable amount of discretionary income. Middle-class people do not live from hand to mouth, job to job, season to season, as the poor do."
Diana Farrell, once Deputy Director of America's National Economic Council, told The Economist she thinks a middle class income begins at the point where a person (or family) has one-third of their income left over for discretionary purposes after they've provided themselves with food and shelter. In other words, someone who earns $3,000 per month would have $1,000 left after they've paid their mortgage or rent, utilities, and grocery bills.
Vacations
A vacation is an extra expense that many middle-earners cannot afford without sacrificing something else.
New vehicles
Very few people who earn the median income can afford to buy a new car or truck. Interest.com recently analyzed the prices of new cars and trucks, as well as the median incomes across more than two dozen major cities, and found that new cars and trucks were simply not affordable to most middle-earners.
To pay off debt
Our debt is growing faster than our income, and many middle class workers have trouble staying afloat.
Emergency savings
Most members of the middle class don't have at least six months of emergency savings, however, and some working people have no such savings.
Retirement savings
As of late, around 20% of people near 65 have not saved anything for retirement at all, and the majority of people 59% worry that they don't have enough money saved for retirement
Medical care
A Forbes article published data indicating that workers in large companies many of whom are members of the middle class "face nearly $5,000 in premiums, co-payments, deductibles and other forms of co-insurance."
During the past few years, these costs have had a large impact on working Americans. A report by Feeding America found that a shocking 66% of households say they've had to choose between paying for food and paying for medical care 31% say they have to make that choice each and every month.
Dental work
According to the CDC, nearly one in four adults between the ages of 20 and 64 have untreated dental caries (like cavities or infections).
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