20 Things The Middle Class Can't Afford Anymore

The U.S. middle class is losing ground financially, and in today's video, we're going to expose a list of things middle-income workers can no longer afford. We're living through the most severe cost of living crisis in history, and Americans are seeing their purchasing power evaporate at a breathtaking speed. Even those who used to have some sense of financial security are now having to make some difficult choices and opt between putting food on their tables, paying utility bills, or seeking medical care. Today, middle-earners do not have the same economic stability their parents had back in the day. They continue to struggle with rising costs of education, entertainment, energy, groceries, and everyday necessities while real wage growth stagnates. With each passing month, living conditions continue to worsen for this group.
Right now, millions of Americans are still struggling to afford a basic middle-class life. Nearly 51 million households don't earn enough to afford a monthly budget that includes housing, food, child care, health care, transportation, and a cell phone, according to a study released Thursday by the United Way ALICE Project. The share of middle-income Americans who say their incomes aren't keeping up with their cost of living has jumped 16 percentage points since December 2020, rising to 75% in June 2022, Primerica found. With tight budgets, middle-class families are having to cut back on their spending on name-brand items. In July alone, retail sales data shows a 28% decline in the purchase of brand name items as middle-income shoppers scramble to afford simple luxuries of life.
The middle-class debt load is growing much faster than their incomes, leaving workers struggling to make ends meet each month. According to a Money-Zine analysis, "back in 1980, the consumer debt per person was $1,540, which was 7.3% of the average household income of $21,100. In 2022, consumer debt climbed to $58,604 per person, which was almost 60% of the average household income of $97,026. This means debt increased nearly 500% faster than income from 1980 through 2022." Having a financial cushion to fall back on is essential to ensure economic security, but as the cost of living soars, fewer middle-class workers can afford to put some money aside for emergencies. A Bankrate poll found that only one in seven middle-class households have at least six months of emergency savings. Over 25% of them have no emergency savings at all, and the remaining households have a small to moderate amount of savings, but not enough to cover six months of expenses.
In theory, middle-class earners differ from low-income earners because they don’t live paycheck to paycheck. But in reality, over 60% of the U.S. population, or approximately, 157 million adults, are currently living in a hand-to-mouth situation. In other words, middle-class Americans are just as financially burdened as low-income Americans, with around two-thirds, or 67%, unable to cover an unexpected $400 expense. New estimates suggest that around one-quarter of the U.S. population is already spending more than ten percent of their net income on energy. People from households that exceed this ten-per cent threshold are considered to be in the "energy poor" group, experts note. Last year, less than 10% of the population faced energy poverty. But over the past 12 months, the proportion of energy poor has risen by more than fifteen percentage points. Economists observe that high energy prices no longer only burden households with low incomes. This is going to be a very bitter winter for many middle-class families out there. Large swathes of our society are already facing massive amounts of financial pain. But as global events accelerate, it's safe to say that the worst is yet to come.

[jedadaspirited]

I think we spent a whole $130 on our wedding. $30 for a dress, $50 for the rings, $50 for the marriage certificate, and my husband just wore the nicest thing we had in our closet. Had the ceremony in my in-laws' living room as well. You gotta be out of your flipping mind spending $20k+ on a gesture that's gonna last a day. That's a down payment for a house right there.

[GenK]

For the first time ever I saw a Toyota Rav4 priced at 53k USD at my local dealership. It is UNREAL that a modest car could actually cost what it cost to buy a house in the 80s

[timothyyoung]

1.New Vehicles
2.Everyday Expenses
3.Eating Healthy Foods
4.Brand Name Items
5.To pay off debt
6.Emergency Savings
7.Retirement Savings
8.Healthcare
9.Going to the dentist
10.Go to college
11.Marriage
12.Divorce
13.Miss a paycheck
14.Child care
15.Going to the movies
16.Vacations
17.Live Entertainment
18.Holiday Gifts
19.Taking Sick Days
20.Heat their homes this winter

[daveprofetta]

I'm so poor, I can't even pay attention.

[thebrotherhoodofsleep]

I'm glad I'm a minimalist. You really don't need to much to live a decent life.

[jeffschmeganheiman]

You don't have to have a lavish ceremony to get married. Men are skipping marriage because they are afraid of getting cleaned out by the broken divorce laws.

[howiescott]

Many of my peers are poor, they spend and spend and spend and complain. I never had a new car ever in my life (I'm 70 years of age this year and drive a 1965 Chevy pickup). I buy food in in bulk, grow much of my food and don't eat out much and I don't eat processed food substitutes. I process my own food with my freeze dryer, commercial vacuum sealer and pressure canner. Many people would call me a hoarder but that's OK. When the SHTF and the lights go out this winter... I'll just throw a log into my wood stove, switch on my solar generator and maybe watch a movie.

[Swsw]

At 35, I’m now glad i stayed single and childless. I don’t have to worry about any of these things. I live in one of the lowest cost of living areas in the United States so that helps out tremendously. I’m just coasting through life with a large amount of savings and stay stress free.

[endofsociety]

Do you know who they consider middle class now? Anyone with a job and a car.

[minischembri]

For decades I longed to be either British or American.
Now I realized I am a happy German. :)

[mrs.americanpie]

Lord you do not HAVE to spend $28, 000 to get married. Expensive weddings are not required.

I would go old-fashioned punch and cake reception with balloons and crepe streamers at the VFW hall rather than not get married.

[Meanace]

7:35 | You know what doesn't help a lack of dental coverage ? The fact that it's separate from *health insurance*. Some bureaucrat decided your mouth and teeth don't count as your body.

*See also : Eyes.

[shadowcat]

I remember the 80's. Part of the difference in debt is because back then we did not HAVE TO buy health insurance, car insurance, cell phones, internet, Cable, and so forth. We also were not required to go to collage to get a reasonable job. These days you can be doing the same job as well as if not better then another person but if they have a degree and you do not, they can make 25 to 50% more for no other reason then they got a degree. Over the years the Feds have regulated how we spend our money without us having a choice in the matter. They have spent our money faster then we can earn it and are not done yet.

[saltyapostle]

Clearly - the answer is to send billions more to Ukraine.

[neweyes]

The name of the game today should be to get out of debt asap. Downsize your home size, shop for and move to the cheapest and freest places in the country, buy a used car that you can hopefully buy in cash, and don't buy anything unless you NEED it. God bless.

[ed]

Probably this is a cultural issue. Culturally, millions of people in this country are raised spending a lot, wasting a lot, and not saving. And this is going for many, many decades. But now, the Country is undergoing some changes and getting more like a 3rd world country in some aspects. Things will most likely get worse over time. Very unfortunate.

[jvolstad]

A new vehicle? I plan to drive my current ride until the wheels fall off.

[montanagal]

We can no longer afford moving, taking a vacation, eating out, filling up the tank, buying new cloths, pay for groceries, pay for pharmaceutical meds, or pay for health insurance. We can't pay our child's tuition bills for college either. I still see long lines at Starbucks!!!

[geraldfordman]

Keeping it simple is the name of the game for the prudent ones. My experience working for a Bank as my first job out of college taught me a few things. The people (i.e. Bank customers) who really had money in there drove modest cars and didn't wear fancy clothing and jewelry. They kept it LOW PROFILE.
However, People with fancy cars, clothing, and jewelry were always the ones scrambling to the bank to make a desperation deposit to cover checks that already bounced back NSF (Non Sufficient Funds).

[Kinkle_Z]

I used to live paycheck to paycheck living in an inexpensive California town making ~$95K/yr. I finally wised up. I'm retired now and make sure that I keep my income under $25K. so I don't have to pay taxes. The key - own your own home outright and buy at the lowest tax basis possible. Own your own vehicle. Pay off debt... live simply. Dylan was right "When you ain't got nothin' you got nothin' to lose." 😁