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Six Signs That You Are Already In The Middle Class

Taking all the surveys and statistics on the middle class into account, it can be said that it is almost a vanishing breed. Despite all the discussion and attention on this particular topic, the definition of the middle class is still unclear. This is because every individual wants to be categorized as middle class irrespective of how much they earn. There exists no official financial standard to define the middle class. However, as has been defined by the Middle-Class Task Force that has been set up under the Obama Administration, the segment of the population in America concerning six financial aspirations that are considered true and effective, can be characterized as middle class. Check out those six points that will tell you if you are already in the middle class.

Home Ownership

Having a home in one’s name is truly a dream of every American. Moving from renting a house to owning a house is considered to be a sign of prosperity as well as achievement. The median price of homes differs from one state to another. Therefore, the ability to own a house differs from one geographical location to another.

Car Ownership

When you own a car, you are free to move anywhere you want. You also get the luxury to avoid the limited options that mass transportation offers. You no more need to wait for the buses and also steer clear of the subways too. However, the costs of four-wheelers vary from one model to another. Price of one model is different from that of another model. For you, a second-hand Hyundai might be suitable, while for another, getting a brand-new BMW might be the goal.

College Education

Middle-class families have one basic thing on their minds and that is to help their kids move ahead in life and career. Parents will have to shell out something in the range of tens of thousands of dollars and hundreds and thousands of dollars for their kids’ college education. The price tag depends on the quality of education in a college or university.

Retirement Security

Everyone waits for the day they will retire. That’s kind of a goal to attain. Retirement is considered to be a reward for all the hard work that one does for several decades. The retirement savings that you garner to ensure that you spend your later years in comfort and security will be different from others. While some spend wisely to amass a significant sum at the time of hanging up their boots, some are spendthrift and fail to accumulate the necessary.

Healthcare Coverage

If you belong to the middle class, getting healthcare for your family will be one of your primary objectives. The cost of medical healthcare and prescription drugs are quite high and tend to arise from time to time. therefore, getting yourself enrolled for healthcare coverage is of absolute necessity. Moreover, if you don’t get healthcare coverage for yourself, you might be facing a serious financial hurdle in case you are injured or severely ill.

Family Vacation

A family vacation is always one of the staple stuff of middle-class families. Going on vacations is a way that a family has enough disposable income and is quite successful in their careers to take out some leisure time from daily work. Vacations are cool.

How to Get in the Status of a Middle-Class?

You will face a lot of challenges on your path to obtain the status of a middle-class. But, through some proactive measures, you can fulfill your dream. Budgeting is, of course, one of those proactive steps and is essential as well. Being aware of where you are spending your money every month will definitely help you in the long run if you are trying to cut down on your spending.

Planning is absolutely crucial. Planning out your kids’ college education like choosing whether to send them to a private college or a state university, considering the scholarship options, etc. will help you estimate how much you will have to spend on that front. Working is definitely a requirement. If you want to boost your earnings, set up a side business or opt for a second job.

To define the middle class, there doesn’t exist any financial standard. For the majority of the population, the middle class is nothing but a standard of living.

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