Many Americans may not be considered middle class, facing financial challenges

According to Pew Research Center, roughly 49% of Americans do not fall into the middle class income category. The middle class is defined as a household with income that is at least two-thirds of the U.S. median income to double the median income, approximately ranging from $56,600 to $169,800.

In 2023, 51% of American households fit into the middle class category. However, a recent survey by the National Foundation for Credit Counseling found that 53% of U.S. adults feel like they can’t make financial progress and 48% are “constantly treading water financially.”

To secure your middle-class position, consider reducing debt and building an emergency fund. Launching a side gig or finding passive income opportunities could also help boost your income to secure your lifestyle. Almost 1 in 5 Americans engage in “doom spending,” making impulsive purchases amid economic uncertainty.

Reducing debt burden can mitigate the risk of bankruptcy. Shopping around for insurance can help lower costs, as the average American spends around $2,433 on auto insurance yearly. Insurify estimates car and home insurance costs are expected to rise by 5% and 8%, respectively, in 2025.

Budgeting and tracking expenses can help identify overspending areas. Using tools like YNAB can simplify spending decisions and prioritize financial goals. Consider signing up for the free Moneywise newsletter for actionable finance tips and news.

Read more at Yahoo Finance: Think you’re ‘middle class’ in America? Pew research shows there’s a roughly 49% chance you’re actually not