There has been a lot of talk about the changing face of wealth distribution across the country, and a new report suggests that the middle class is shrinking. As more households edge toward either end of the financial spectrum, a payday loan advance could help you with any unexpected bills until your next paycheck arrives.
According to a report from SCLMoney, in 1971, roughly 61 percent of American households were classified as middle class. Meanwhile, 14 percent of households were in the upper-income bracket, while 25 percent qualified as lower-income.
As a result of the changing face of household finances, nowadays, only 51 percent of families qualify as middle class, which is a staggering decline from 40 years ago. At the same time, the lower-income bracket grew to 29 percent of all households, while upper-income households increased to a 20 percent share.
What Caused The Shift?
According to experts at the Pew Institute, one of biggest issues the middle class is facing is the deterioration of their wealth. In the wake of the housing market collapse, the wealth of many Americans followed the plummeting property values.
Additionally, income levels have remained very stagnant during recent years. The middle class alone endured a roughly 4 percent decline in wages between 2012 and 2022 to a median income of just under $70,000. This all occurred while the cost of living continued to increase.
What Can The Middle Class Do?
One of the best ways to cope with the changing financial landscape of the country is to formulate a sound household budget. Take a few months to track where all of your money is being spent. Even if you buy a cup of coffee, account for this expense.
Once you get a feel for your costs, separate them into two different categories: necessary and luxury. While it can be difficult to cut back on necessary expenses, eliminating some frivolous spending from your budget could leave you with some extra cash at the end of every month.