10 Signs You’ve Fallen Below Middle Class (And What You Can Do About It)

Are you falling out of the middle class? The median income of middle-class households was $106,100 in 2022, according to Pew Research Center.

Slightly more than half (51%) of Americans lived in middle-class households the following year. That compares to 61% in 1971.

While many Americans are looking for clever ways to build wealth, you might find it difficult just to scrape by. If any of the following things describe you, you've probably fallen below middle class.

Sometimes, determining if you are in the middle class is a matter of perception. If you are constantly digging into your emergency fund, it’s probably a sign you have fallen out of the middle class.

One simple solution to this problem could be to recalculate your budget so you spend less. That can keep you from raiding your emergency fund and help you prepare yourself financially for tough times.

In fact, you might save enough to actually add money to your emergency fund.

Debts can be a source of frustration. If your debts keep growing, it may be another sign you have fallen below middle class.

To turn things around, start paying down your debts. Put money aside from each paycheck to go toward paying off what you owe.

This may mean you will need to cut spending in other areas, but it could save you from paying interest on your debts.

Are you struggling to pay health care bills? If so, you are not alone. The rising costs of medical care mean more Americans are having difficulty paying their medical bills.

Contributing to a tax-advantaged health savings account or flexible spending account are two ways to trim these costs.

It’s difficult to save money when you live paycheck to paycheck. This is another sign you have slipped below middle-class status.

Take a closer look at your weekly expenses and see if you can find some areas where you can cut back. Then, move your savings into a savings account that can help you grow your money.

Traditionally, middle-class life has been closely associated with only having to work one secure job that pays well and meets your needs. That’s not the case today for many Americans.

It might not be fun, but sometimes, the best way back into the middle class is to work more than one job. If you are able to save enough money from your second job, you might eventually be able to drop the position and go back to working just one job.

Housing is a big expense, especially when your finances aren’t in the best condition. Whether it’s a home or apartment, rising costs are putting the squeeze on more individuals and families.

Perhaps you can move to a different, more affordable house. If not, look into refinancing.

Everyone needs time to relax and recharge. If you find yourself with no money for vacations, it may leave you wondering if you have fallen out of the middle class.

For now, perhaps staycations at home are your best option. Start a vacation fund on the side so eventually, you can visit more exotic locales. Or, try booking a trip during off-season times, when vacation costs are lower.

The closer you get to retirement age, the more anxiety you may feel about being able to live comfortably during your golden years. If you have no retirement savings, it can be especially scary.

So, make saving for retirement a priority. Consider picking up more work, so you have additional money to put aside for retirement.

If you own a car, you know that a lot of costs come with vehicle ownership. You have to pay for gas, insurance, repairs, and other expenses.

If you struggle to afford these costs, it’s another sign you are sliding out of the middle class. Consider cheaper options, such as buying a used vehicle.

Economic uncertainty in recent years has meant more job insecurity for some Americans. If you're in this group, perhaps you could look into getting a second, part-time job.

Having a part-time job or side hustle that helps you earn extra income could give you greater peace of mind. At least you will know that you have something to fall back on if your main job disappears.

If you're slipping out of the middle class, don’t panic. There are many ways to lower your financial stress.

Now might be a time to re-evaluate your spending. Talk to a frugal friend and ask for any advice about how to lower expenses.

If you put your mind to it and change your priorities, you should be able to cut costs enough to increase the money you save and put yourself on a path back into the middle class.