By some estimates, the middle class in America is shrinking. A Time Magazine article from 2001 said that the proportion of families in the middle class (defined at the time as having a household income between $15,000 and $49,999) shrank from 65.1% in 1970 down to 58.2%.<\/p>\n\n\n\n
The article did say that more families\u00a0moved up<\/a>\u00a0than down. However, it also stated that the number of families with incomes below $15,000 grew as well.<\/p>\n\n\n\n A more recent estimate from Pew Research says that middle-income households had incomes ranging from $48,500 to $145,500 in 2018. The precise\u00a0middle-class income<\/a>\u00a0level can vary widely based on where you live and the size of your household, so check your state to find out whether you are considered middle class.<\/p>\n\n\n\n Paying your bills automatically is a good idea. And if your income is firmly seated in the middle-class range for your state, you can probably at least cover the basics every month without too much trouble. If so, automating your bill pay is a good idea for two reasons, says Taylor J Kovar, CEO, CFP at The Millionaire Marriage Podcast<\/a>.<\/p>\n\n\n\n \u201cThis not only ensures that your credit report doesn\u2019t take a hit by being late on a bill but it also saves you so much time every single month.\u201d Translation: you\u2019ll save not only time by paying automatically, but potentially money, too, since it will help you avoid late fees.<\/p>\n\n\n\n We\u2019re all busy, which can make it easy to forget to transfer money into our savings accounts. That is, unless we automate that, too.<\/p>\n\n\n\n \u201cThis is probably my No. 1 tip for families looking to grow their investment accounts,\u201d says Kovar. \u201cSet it up with your bank to automatically transfer [money] into your investment account the same day you get a paycheck and you\u2019ll instinctively begin to live on the lesser amount while building your wealth!\u201d<\/p>\n\n\n\n Automating savings is simple, too, if you use one of the best savings accounts<\/a>. They allow you to link your bank account and set up recurring transfers every month. You can do the same with any of the best brokerage accounts<\/a>, but the key is to make it automatic.<\/p>\n\n\n\n Using a credit card properly can be a challenge, particularly if you don\u2019t see it as something you are required to pay back. Thus, using credit cards is best if you have a healthy relationship with them.<\/p>\n\n\n\nAutomate Bill Pay<\/h2>\n\n\n\n
Automate Savings<\/h2>\n\n\n\n
Use Credit Moderately and Consistently<\/h2>\n\n\n\n