21% of Americans are in the upper income bracket according to Pew Research Center. The upper income class has increased by 3% since 2001, while the middle class has decreased by 4%. On the other hand, the lower income class increased 1%.
This means that more people are getting wealthier and poorer causing the middle class to decrease. Obviously, a majority of people would like to be in the upper income class which begins at a household income of $125,000. You can buy a couple nice things with that income, but after taxes you looking at about $6,250 per month. With a family, it gets harder and harder to experience nice things while paying for things like private school on that income. If you are single or in a relationship with someone who doesn’t spend all of the money, then you can live comfortably with a few toys.
The middle class is arguably the toughest situation to be in, because you don’t qualify for certain benefits like the lower and upper class do. You’re most likely working for a salary which offers minimal deductions and takes out a big portion of your income. Not only that, but since wages have actually decreased for the middle class from $67,600, to $62,400, you are looking at a lose, lose, lose situation all together.
Only Part of The Story
The statistics I’m throwing out are for the entire United States as a whole. The situation for African-Americans is much, much worse. Many Blacks are struggling to even make it to the middle class which starts at around $41,600 nationally before taxes and $2400 per month after taxes. For a family, this is not a lot of money. With bills such as a car note, a mortgage or rent, car insurance, you can see how quickly the money can evaporate.
From these facts, you can see that having at the least a side income coming from either business, real estate, stocks, patents, bonds, gold, fine art, etc. is a must in this day and time. Nothing is wrong with having a job, but even if you have a high income, with one income source you are at a disadvantage. Taxes and the chance you will get fired should be enough motivation to have another income source. It doesn’t have to be big, but an additional source can help you in times when you are looking for your next venture to start or join.