We have become so accustomed to living day to day that we have forgotten about the future, and it is estimated that the middle class will lose a lot of purchasing power in the coming years. What we now have and can afford as “normal things” will become practically impossible or unattainable for many sectors of the population due to inflation (which is not expected to go away). Inflation will make money increasingly worthless, and everything points to the fact that the economic situation is going to get worse. Something as simple and common as a family trip or buying a new car could become real luxuries in the coming years. Do we have to rethink our lifestyle from now on? We will tell you all about it below.
What is the middle class?
We are talking about a sector of the population that is right in the middle, they cannot afford excessive luxuries but they are not up to their necks at the end of the month. They are, for the most part, working families who can indulge themselves but always with a calculator in hand.
So, generally, they are not people with great fortunes, but rather people who organize their finances well so that they can make ends meet “relaxed.”
What is happening with the middle class now?
It has become an “endangered species” because it is going through a rather difficult time. We all know the middle class as the economic engine of countries, but the standard of living continues to rise, but not salaries. So, now they are caught between precarious salaries, increasingly expensive housing and inflation that is growing disproportionately, making the prices of basic products increasingly higher. What once seemed like stability now seems like an obstacle course for this sector of the population.
The future of the middle class
Alyssa Huff, expert and owner of Sell House As Is, explained that she had seen how the middle class currently enjoys basic things (like owning a house or having fairly manageable mortgages, or sending their children to college), but that looking to the future, the increase in all these essential goods, which of course include housing, health care, or basic food products, will make life for this sector of the population much more complicated in the coming years…
The good news? That you will be able to prepare better during these years.
How should the middle class plan?
- Say goodbye to family vacations. That’s right, this classic will be practically impossible for families with lower resources because the prices of flights and hotels will be increasingly higher. One user said that after the COVID crisis and inflation, family vacations have become a thing of the past because their salary does not allow them to go on vacation. Other people are even opting for shorter breaks to closer destinations so they can afford at least a couple of days of “relaxation.”
- Buying a new car: mission impossible You’ve probably noticed that vehicle prices are constantly rising, and not just electric cars. The most basic models are increasingly expensive due to the technology and safety they implement. Financial expert, Melanie Musson, points out that the middle class will see it as unattainable to buy a new car due to the increasing price increase.
- Sending your children to university will also be a challenge for families with fewer resources. If it is already complicated at present, the situation is expected to get worse. Tuition fees continue to rise in price and many families will have to rethink whether it is worth going into debt for a university degree.
- Housing and health will be a luxury instead of a right. Seeing the current prices of housing is scarier than Halloween night, and the same goes for medical care. Shouldn’t it be illegal to have to choose between paying for treatment or covering any other type of basic need? What can we do?
For now, not much, inflation is going at its own pace and the market is following it closely, it will become more and more difficult for us to save, and if we talk about retirement… maybe we won’t even get there with so much fear. However, start saving now while you can and try to avoid the small, small expenses, those little treats that you give yourself because “that’s what you work for”, because the future looks very bleak…