Determining the financial layer not only depends on the income you enter. If this is at the time, by defining the Pew Research Center for “Central Class”, you will be firmly in this category if you win between two -thirds and twice the family income in the United States (which is $ 80,610). This means that you will consider the middle class if you earn $ 53,740 to $ 161,220 a year.
Read more: 6 errors in destroying the wealth that people make every day without knowing that
Discover: 5 types of vehicles. Retired people should keep away from buying
But the income is only part of the largest image. Here are some of the best ways to become financially safe for the middle class salary in the United States
Your salary is a good starting point to determine your financial well -being, but you have to think about the biggest picture. Things like family size, where your other financial obligations are also important.
“The big wrong belief is that the six -numbers salary automatically means financial security,” said Melissa Murphy Buffon, Mindol Financial Partners Foundation. “I work with customers who get $ 150,000+ and who feel that they hardly take water, especially in high -cost areas such as New York.”
Imagine a four -year family at $ 161,220 in New York City. The house costs an average of about 796,000 dollars there. Take other joint expenses such as childcare, credit cards, or other debts, groceries, health care and transportation, and you are looking for a possible budget.
Now, imagine a person who has no children or debts living in Columbus, Ohio where homes cost an average of $ 253,000. Assuming that they have solid budget skills and attention to their spending and savings, they may be good for themselves on this salary.
High observers owners live on salary or struggle with debts all the time.
Take a couple from California who recently contacted Dave Ramsey as an example. They earn about $ 300,000 a year and owe $ 119,000 of debt (does not include their mortgage). They also spend approximately $ 5,000 a month to pay their housing and struggle to reduce their expenses and pay what they owe.
Regardless of the amount you earn, one of the best ways to become financially is to develop a plan or a budget for spending. You can keep things simple. For example, you can follow the budget base 50-30-20 as your income goes to the following categories:
Or you can divide your spending into larger categories such as:
-
Mortgage or rent
-
Facilities
-
communications
-
mystification
-
clothes
-
food
-
Insurance / health care
-
Debt
-
Savings and investment
-
diverse
Whatever you do, I am looking for a budget that suits you. If you find yourself spending a lot in certain categories, try to retreat a little and put this money towards more important things.
According to Experian, the average person holds $ 6730 of credit card debts. This may not seem much if you gain twice the average income, do not have other debt obligations and other costs remain reasonably low.
But if you have a lot of credit card debts, you may have a spending problem – or you have not set priority to pay your balances. Given the high interest rates of credit cards (approximately 23 % on average), this means only that you spend more than you should.
If you want to become more financially safe, start treating that debt. You can always use the Debt Snownball method, which focuses on paying the smallest balance first before moving to the most symbolic balance etc.
Many financial experts suggest that there be at least three to six months of expenses in the emergency fund. If you work for your own account or have children, you may want to shoot for a higher amount.
Many middle -class families do not have an emergency box at all. What this means is that even the smallest financial hiccup – like a sudden medical bill – can be harmful to its monthly budget. This may mean even taking new debts to cover this bill.
“The middle layer is not only related to income, but it is related to the sustainability of the lifestyle. Can you cover your needs, enjoy some needs, provide for the future, and absorb the financial curve ball without collapse? This is the heart of the middle class.”
Securing your family financially. Building an emergency box.
Your clear wealth is essentially the value of all your assets, minus all your obligations (or debt).
If you owe $ 200,000 in a $ 500,000 house, your net wealth is $ 300,000 (assuming that there is no other debt). If you also have $ 100,000 in retirement savings or investments, add this to the total value of your net.
Knowing your clear wealth is the key to understanding your financial safety. It gives you a more accurate picture of your total financial health than income alone.
But the families of the middle class often have a negative clear value-it is not always aware of it.
Advertisement: High -return savings offers
Supported by Money.com – Yahoo may earn a commission of the above links.
“In fact, many families of the middle class carry debt quietly, the formation of increased expenses, and fight to keep pace with appearances,” Pavonie said. “It is extremely important to measure the amount you save for how much you earn.”
More gobinkins
sources:
-
Melissa Murphy Buffon, founder of Mindful Financial Partners
-
PEW Research, “Are you in the American middle class? Try our income calculator”
-
Census.gov, “Income in the United States: 2023”
-
Zillow, colorbus, OH Housing market: 2025 Home prices and trends “
-
Zillow, “New York, Housing Market in New York: 2025 prices and trends of homes”
-
Dave Ramsey’s offer, “Where did you fluctuate?
-
Experian, “Average credit card debts increases 3.5 % to $ 6,730 in 2024”
-
Financial Consumer Protection Office, “Credit Card Paper Card Exte on” at all “” at all “
-
Ramsey solutions, “Emergency Box: Why do you need one and how to save”
This article was originally appeared on Gobankingraates.com: 5 ways to become financially safe for the middle class salary
