Dec 31, 2025
Struggling to stay afloat as a middle-income earner in the U.S.? You’re not alone.
Pew Research Center data shows that the incomes of middle-class households have not risen as quickly as the incomes of upper-income households over the past several decades (1).
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Sometimes it can feel like one misstep can put a person in financial ruin. Imagine the case of Ayesha, one of those struggling middle-income earners. She’s in her 30s and lives fairly modestly with a secondhand car and a small apartment that she rents with a friend. Ayesha makes $60,000, but living in Dallas is expensive — the average rental price for a two-bedroom apartment is $1,895, and the cost of living there sits slightly higher than the national average, according to Zumper. (2)
Ayesha’s take-home pay, after taxes but before her 401(k) contributions, is about $50,000. However, after subtracting all expenses, she has very little left at the end of each month to build an emergency fund or spend as she pleases. She also has over $10,000 in credit card debt.
Ayesha feels like she's just one bad day away from a serious financial emergency. She often imagines scenarios like being laid off from her job or getting into a car accident and her car or health insurance not covering the majority of the costs and worries about how she would manage.
Here’s what Ayesha — and others like her — can do to feel more secure financially.
Pressures on the American middle class
It seems Ayesha only just makes the grade as middle class in Texas. In plenty of places, she barely qualifies for this status and, in various others, she would be considered low income.
SmartAsset, drawing on data from 2023 U.S. Census Bureau, claims that a middle-class income in big cities ranges from $49,478 to $148,449. (3) The numbers vary widely across the country. For example, in Detroit, the middle income range is $25,384 to $76,160, while in Arlington, Virginia, the range is an eye-watering $93,470 to $280,438.
Meanwhile, in Texas, the middle class is defined as earning between $50,515 to $151,560. This means Ayesha is very much in the lower bounds of what is considered middle class in the place she lives and close, like many others, to being squeezed out.
A gloomy feeling about the future is pervasive across the country. According to a 2024 survey from the National True Cost of Living Coalition, 65% of middle-class Americans are struggling financially and don’t expect this situation to improve for the rest of their lives. (4)
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The housing market also remains a massive issue for most Americans, as prices and mortgage rates remain elevated.
Considering all of ehse factors, it's can be easy to explain why so many Americans are feeling pessimistic about their financial futures.
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How can you become more financially stable
While the odds might seem stacked against you, it is possible to find ways to become more financially stable. This doesn’t just require earning more income. Changing your budgeting and spending style can also make a huge difference.
One of the first steps to take is building an emergency fund with at least three months of expenses. This is essential to ensure you can cover both minor costs like car repairs and health care expenses, but also feel secure if you happen to lose your job or face another major crisis.
Paying down debt is also critical, as the interest payments eat into your budget and prevent you from finding extra room to save. For example, Ayesha’s $10,000 high-interest in credit card debt could be costing her hundreds of dollars per month — money should could put toward savings instead.
One of the best ways to begin building a realistic budget is to track your spending for 30 days so that you truly understand how you use your money. You may be surprised where it really goes.
You should also treat your savings as another bill that you must pay and can consider setting up an auto deposit so that it’s built into your budget.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Pew Research Center (1); Zumper (2); SmartAsset (3); National True Cost of Living Coalition (4)
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Rebecca Holland is dedicated to creating clear, accessible advice for readers navigating the complexities of money management, investing and financial planning. Her work has been featured in respected publications including the Financial Post, The Globe & Mail, and the Edmonton Journal.
