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But was the bump in household income last year enough to ease the financial strain of American families?
Heres what Dre Villeroy, CEO at investment management firmBeyorch, had to say about that.
you could also find out themedian household income for the upper middle class this year.
Was the Average Household Income in 2023 Enough?
However, he noted whether the amount was sufficient also depends on the family size.
That same income in the Midwest, for instance, would providemore financial comfort.
However, Midwest residents face different expenses, such as higher transportation costs, including car insurance and gas.
Regional differences make it challenging to define a median income that works universally.
Villeroy said that stretching your budget means you have to prioritize spending on things you need.
Focus on what your family actually needs to live, he said.
I recommend tracking your expenses for two weeks to identify areas where you could cut back.
Look into consolidating bills, such as bundling cable and Internet.
Evaluate whether you still need cable or all of your active streaming services.
In the most challenging cases, consider a part-time job or side hustle.
Of course, childcare costs and other factors will influence whether this is a viable option.
Will Income Trends Improve or Worsen in 2024?
Villeroy said it depends on the economy.
Enough attention has been brought to the issue, so changes are possible, he said.
However, with an upcoming election, its unclear whether either candidate will successfully address the economy.
The expert continued, The key factor will be how effectively inflation is managed in the coming months.
If inflation continues unchecked, we could be heading towardmore financial instability.
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