The cost of living, particularly housing, child care, and healthcare, has escalated, leaving families struggling even with six-figure incomes.
The article explores how a $100,000 salary, once considered middle-class, no longer guarantees a comfortable lifestyle in many parts of the U.S. The cost of living, particularly housing, child care, and healthcare, has escalated, leaving families struggling even with six-figure incomes. Data from various sources, including the Census Bureau and Economic Policy Institute (EPI), highlight the financial strain on middle-income households. Despite earning above the national median, families often face challenges in affording basic necessities, let alone saving for the future or unexpected expenses.
The analysis underscores the disparity between income and expenses, especially in metropolitan areas like New York City and Los Angeles. Strategies like combining households or relying on government subsidies have become common to cope with the financial burden. Additionally, the article discusses budgeting recommendations and the need for substantial savings to achieve financial security, including retirement, homeownership, and education expenses.
Overall, the article emphasizes the need for systemic changes to address the financial insecurity faced by middle-income families, including strengthening workers’ influence through unions and implementing policies that support healthcare, education, and affordable housing. Despite varying income levels, financial comfort is portrayed as more dependent on spending habits than on income alone.
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