Are You Middle Class? Find Out Where Your Income Ranks | Global News Avenue

While it’s a popular political narrative that the middle class is shrinking, we all want to know how we compare to our neighbors and the generations before us. About half of U.S. adults (52%) will be considered middle class by 2022, according to a study released by the Pew Research Center in 2024.

But how many people “consider” themselves middle class may vary. Where you fall depends on several factors, such as where you live, current inflation, and how you make a living.

What is the middle class?

The Pew Research Center defines middle-class households as those with annual incomes between $56,600 and $169,800 as of 2022. (This applies to a family of three.) That’s a pretty broad range.

The U.S. Census Bureau found that nationwide median Household income in 2023 is $80,610. The most common calculation definitions middle class Income increased from two-thirds to twice this median. That would put it between $54,009 and $161,220, an equally huge gap.

Where do you fit in?

A 2024 Gallup study found that 54% of Americans consider themselves middle class. (Of those 54%, more than half believe they “middle class” and 15% considered themselves “upper-middle class.”) Some of them may be wrong. Many factors determine your income level. Your location, job, and educational background are important variables.

Where do you live?

The ten metropolitan areas with the highest proportion of middle-class residents are all small and medium-sized cities, mostly located in the northern United States. Six out of 10 residents in these cities are middle class. The city with the largest proportion of middle-class residents is Dover, Delaware, with 65% of residents belonging to the middle class.

The income range for California’s middle class is $59,913 to $179,740. This compares to $38,626 to $115,300 in Louisiana and $74,370 to $222,000 in Washington, D.C.

Five states lack minimum wage: Alabama, Louisiana, Mississippi, South Carolina and Tennessee. Two other states, Wyoming and Georgia, have minimum wages below the federal minimum wage. Therefore, these seven states use the federal minimum wage ($7.25 per hour).

What is your job and education level?

Your job and education level also play an important role in the calculation. About half (52%) of people over 25 have at least Bachelor’s degree By 2022, these people will be considered middle class, with about one-third (35%) living in upper-income households. About one-third of people working in the transportation, construction, personal care and food industries live in low-income households.

Middle class past and present

Another changing factor that determines the middle class is inflation speed. According to the Pew Research Center, the number of middle-class households has been shrinking for decades. Between 1971 and 2023, the number of middle-class households in the United States fell by 10%, from 61% to 51%.

According to Gallup, from 2002 to 2006, 61% of Americans considered themselves to be living in middle-class or upper-middle-class households. When this number drops to 56% Great Recession reached this level in 2008. The decline has since been even steeper, reaching 53% by 2024.

other factors

Men are more likely than women to enter the middle class (53% of men and 51% of women in 2022).

In 2022, eight in 10 married couples live in middle- or high-income households.

Compared with non-veterans, U.S. veterans are slightly more likely to enter the middle class in 2022 (57% vs. 53%, respectively).

bottom line

Your income level can only tell you so much. If you’re truly middle-class, some bills will hurt more than others, especially if you can’t make ends meet—and a lot of people can’t make ends meet. The good news is you may have enough income save and invest if you Set a budget And keep at it diligently, month after month.

If your goal is to save for your future – e.g. retire—Then keep track of your expenses. Consider canceling your gym membership to free up cash. You can also ask for a raise or even a job change. While your income doesn’t define you, it does affect certain areas of your life – so be mindful of how you spend your money.