Champagne Life on a Tap Water Budget
Your fancy middle-class neighbors with new vehicles, a boat, RV, 3,000 square foot house and a 4-door side by side are most likely living paycheck to paycheck. The average middle-class income in the U.S. in 2024 ranged between $50,000 - $150,000 annually. The average net worth for middle class families in 2024 ranged between $250,000 - $300,000. While these families are not poor, they are most certainly far from wealthy and far from financially free.
Some eye-opening statistics:
30-40% of middle-class families have less than $1000 in their savings account.
Only 25-35% have 3+ months of expenses saved.
The average middle-class savings account has a measly $3500-$5000 in it.
Sure, they can afford the payments and uphold the image of a wealthy family but deep inside they are stressed about money, popping Prozac's and hiding their booze bottle in the closet.
Since you are a Betternance reader, you're in luck, our panic-stricken middle-class family above does not need to be you.
Keep your expenses far below your income and prioritize savings. If you want that boat, the RV, or vacation house, you need to figure out a way to make more money whether through a side hustle, new job, investment streams etc. Just because you can "make the payment" does not mean you deserve it. "Honey we can afford that payment" is a poor man's way of speaking. Don't let banks tell you what you can and cannot afford, you should be the captain of your own financial ship.
What your family DOES deserve, is for you to get them financially free as soon as possible. Give your spouse, your kids, your parents the safety and security they deserve. The party toys, big houses and fancy trips will come as a reward for prioritizing financial freedom first.