10 Financial Signs It’s Better To Remain Middle Class Forever
If you’re lucky enough to be part of the middle class — you’re in a real sweet spot.
While conventional wisdom states we should constantly be looking for ways to go up our socioeconomic ladder — staying part of a comfy middle-class lifestyle can be ideal for many.
As Andy Kolodgie, real estate expert at PropertyLeads, said: “It’s not just about money — it’s about quality of life too.”
“Middle-class families often have access to better healthcare, education and housing, which means less stress and more time to focus on what really matters,” he said.
“Whether it’s taking your kids to the doctor without worrying about the bill or being able to afford a nice family vacation, those little luxuries add up to a happier, healthier life.”
“And let’s not forget about the safety nets,” Kolodgie said. “Life can throw curveballs, but being middle class means you’re less likely to fall through the cracks.”
Rhett Stubbendeck, finance and insurance expert at Leverage Planning, agrees. “Living middle class means you can have a good life without the pressure of high-end expectations. Affordable housing, lower taxes and having enough for vacations and hobbies — it’s all more doable.”
Here are more perks to remaining on the middle-class trajectory for good.
Also see five ways to live like the super rich in middle class.
You Have Greater Access to Credit
“It’s like having a financial safety net when you need it most,” said Tom Bruzek, real estate expert at Selling Land Fast.
“Middle-class folks often qualify for loans and credit cards with lower interest rates, making big purchases like a home or a car more manageable,” he said. “Plus, it’s easier to invest in yourself, whether it’s furthering your education or starting a business because you have that financial flexibility.”
More Opportunities To Keep Growing Your Wealth
Speaking of investments, Bruzek says being middle class doesn’t mean missing out on opportunities to grow your wealth.
“Sure, you might not be investing millions, but with retirement accounts like 401(k)s or IRAs, you can still watch your money grow over time,” he said. “It’s all about setting yourself up for a comfortable future.”
Liz Hutz, real estate expert and co-owner of Cash Home Buyers Georgia, equally notes that being middle class offers more opportunities to save and invest.
“With a steady income, you can set aside money for emergencies, retirement and other future goals without constantly worrying about making ends meet.”
“Take, for instance, a family earning $75,000 annually; after covering expenses and taxes, they could save about $10,000 each year,” Hutz said.
“Over three decades, with a 6% yearly return on investments, they could amass a tidy sum of around $800,000. This financial safety net offers peace of mind and the freedom to pursue dreams and values without financial stress,” she said.
Home Ownership Assistance
According to Ethan Keller, president of Dominion, even though middle-class Americans are having a hard time paying for student loans and lifestyle items, there are still financial advantages to being middle-class.
“Since a yearly $100,000 income is considered middle class and lower than most of the states’ AMI (Area Median Income), a middle-class individual can take advantage of the federal and state-run financial incentives for home buying.”
“The financial support ranges from lower credit scores, down payment assistance and easier loan terms,” he said.
“Hence, middle-class Americans can be homeowners with financial cutbacks and benefits, especially in high AMI locations such as New York City, Virginia, Massachusetts and Washington.”
Medicaid for the Elders
“Middle-class elders and retirees struggle to pay long-term nursing care and medical bills,” Keller said.
“Unlike the upper middle class and lower class, they can access Medicaid benefits better as they are well-versed in federal policies and their income makes them eligible for the benefits.”
Lower-Stress Lifestyle
“As a financial advisor with extensive experience, I have observed that there are indeed some financial advantages of staying middle class,” said Jonathan Feniak, general counsel at LLC Attorney.
“Middle-class individuals often have less financial stress compared to wealthier counterparts since they are typically less exposed to volatile markets, heavy investment losses and large-scale tax planning.
It Fosters Practical Money Management Skills
Remaining middle class often encourages practical money management skills, Feniak said.
“For instance, it promotes diligent budgeting as well as mindful spending, rather than relying on significant wealth to cover unplanned expenses.”
You Qualify for Specific Financial Aid
Those in the middle class are generally more eligible for certain types of financial aid and benefits, Feniak said, such as student aid for their children, which can lead to significant savings.
More Affordable Living Leads To More Peace of Mind
“Having a middle-class lifestyle often means a simpler, more affordable living, decreasing the need for costly upkeep and maintenance associated with wealthier lifestyles,” Feniak said.
“Overall, although there are financial pros and cons at every income level, remaining middle class can offer some distinct financial merits and peace of mind.”
Access to Tax Benefits
“Over the years, I’ve seen some real advantages to staying middle class,” Stubbendeck said. “I’ve seen clients choose this path and they’re happier for it, enjoying life without stretching every dollar.”
“Credits like the Earned Income Tax Credit can lower your bill more than you’d think. At Leverage Planning, we’ve guided clients through these options, finding extra savings they never knew they had.”
Higher Education Advantages
“Take college for example,” Stubbendeck said. “Middle-class families often hit the sweet spot for scholarships and grants.”
“I’ve helped families navigate this and shave off a big chunk of education costs and it’s a game-changer.”
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This article originally appeared on GOBankingRates.com: 10 Financial Signs It’s Better To Remain Middle Class Forever
