The report contends that the lower rungs of the middle class shrank because more Americans got richer, with 31% of families classified as upper middle class in 2024.
Many upper-middle-classers don't even realize they've climbed into this tier. Randy Shilling, a 58-year-old chemical plant worker in Texas, saved more than $3 million for retirement. 'I view myself as an average Joe,' he told The Wall Street Journal. 'But when I want something, I go get it.'
"The wealthy who are at financial risk are high earners whose lack of budgeting and profligate spending has them overleveraged and exposed. While they appear to be doing well from the outside, they are only a step away from real financial trouble."
Over half of Americans, 60%, say a weeklong vacation is unaffordable-and even 49% report the small joy of going out to dinner is out of their budgets. Around 74% also say buying a new car is too expensive, but beyond these commonplace "luxuries," U.S. adults are battling the exorbitant costs of everyday essentials.
Growing up outside Manchester, I learned early that there's a stark difference between having money and knowing how to make things last. My dad worked factory shifts while my mum juggled retail hours, and our house ran on an unspoken rule: if something still worked, you didn't replace it. Last month, I visited a friend in Belgravia who was renovating his kitchen. As we chatted over coffee, workers hauled out perfectly functional appliances that looked barely used.
Growing up outside Manchester, I thought everyone kept their tea bags to use twice. It wasn't until I was at university, sitting in a friend's kitchen in London, that I realized this wasn't normal. My friend watched in horror as I carefully squeezed out my used tea bag and placed it on a saucer for later. "What are you doing?" he asked, genuinely confused.
Growing up outside Manchester, I remember watching my mum count out exact change at the supermarket checkout, keeping a running total in her head as she shopped. Meanwhile, my university roommate would just toss things in his trolley without a second thought. That's when it hit me: Financial security isn't just about having money. It's about the mental space that money creates.
Ever notice how the people with the flashiest lifestyles often have the emptiest bank accounts? It's a strange paradox: those who look the wealthiest are sometimes the ones struggling most to make rent. I learned this lesson the hard way after being laid off during media industry cuts. Those four months of freelancing taught me something crucial about money that I wish I'd understood earlier.
Collins, the best-selling author of Pathfinders and The Simple Path to Wealth, said the reasoning is simple: Buying a home "dramtically inflate[s]" your cost of living. While your mortgage payment and rent payment may be similar on paper, owning a home ends up costing more in the long run and comes with unexpected expenses-often referred to as the "hidden costs" of homeownership, like insurance, repairs, and updates.
