Do you think yourself a part of the middle-class society?
Some people prefer to call themselves middle class as it shows that they are not poor.
A large number of people had to escape poverty, shackled by student loan debt.
Others, pretend to be a part of the upper middle class.
According to research, the middle class is shrinking. So, let us find out the factors that indicate whether you are part of the middle class.
Homeownership has been the hallmark of middle class since quite some time.
The very step up from renting a home to owning one is a mark of achievement and prosperity. As the price of home differs depending on the location, the ability to achieve this goal depends on geographical location.
Owning a car provides the freedom of luxury and movement.
It allows the opportunity to avoid mass transportation costs like subways and buses.
Once again, the cost of car varies widely depending on requirement.
For some, a Hyundai does the trick. For others, owning a BMW is the goal.
Clearing Your Bills on Time
Most middle-class people can clear off their bills by the end of each month.
If you are not facing hardships paying rent, utilities and other responsibilities that comes with adulthood, you can safely consider yourself a part of the middle-class society.
Typically, the middle class clears off the bill soon after receiving the paycheck.
Do you know when they are prone to making bad financial decisions?
After paying off the bills.
The people closer to the poverty line usually faces hardships clearing the bills. They go months without paying the bill, destroying the credit score.
Caring about Celebrities
Yes, caring about celebrity culture speaks a lot about the socioeconomic status of an individual.
The middle class tend to look up to the rich and famous.
Usually the rich do not care a lot about the living standards of celebrities. For them, the celebrities are just people who have worked hard to be rich and famous.
Health Care Coverage
For the middle class, the ability to secure healthcare facilities is an important goal.
The rising cost of medicine and healthcare facilities make healthcare coverage an ever-increasing need. Going without it can lead to negative financial implication in case of an injury or an ailment.
Investment for Retirement
Investment for the golden years of life is one of the most significant needs, but most people are not very good at it.
It is crucial to set aside money for life after retirement.
It demonstrates success and is rewarding after you spend years toiling hard at work.
So, plan early to enjoy the golden moments of life.
However, once again this varies from one person to another. While for some, living in a villa is important, for others spending time with close ones in a cosy home matters.
Though there are several challenges to obtaining middle class status, you can certainly turn this dream into reality. Make sure you have a budget and think before you spend.