Managing Your Monthly Expenses

Revenue and Expenses to GDP 1993-2007

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There it is again — the first of the month, and with it all those bills you were hoping would just melt away. Unfortunately, monthly bills have a funny way of coming back with striking regularity. They must be dealt with, or they will come back to haunt like the harrowing Ghost of Christmas future.

Yes, building a stable economic future for yourself in today’s rocky economy takes some doing, but the key is in being smart about managing expenses. Keep your eyes wide open about how much is coming in and how much is flying out the door.

There are plenty of tools available for monitoring monthly expenses, including budgeting software with spreadsheets that will help you really see where money is being spent. Many banks have free online budgeting resources to keep track of spending, too. Tools like cricket cell phones can make it easy to check your online bank statements from any location so that you can always stay within your budget.

As you start to really manage expenses, you also want to be sure you’re covered in case of an emergency. It’s important to have a certain amount of credit available for an unexpected, last minute expense.  If you don’t have enough credit to cover an unforeseen expense, online personal loans is another solution. Today there are options available for quick loans with competitive interest rates and a longer payback window. What’s important is to have some options open in advance of an emergency.

Whether you use budgeting software or good old pen and paper, it’s important to review your monthly expenses regularly so you know what you owe, with no surprises.  Managing your money isn’t a horrible responsibility; it’s a way to stay stable so you can enjoy the rest of your life.

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Defining America’s Lower, Middle and Upper Class

The United States economic structure can be separated into three different class groups. People are grouped into the lower, middle and upper classes based upon their education, lifestyle and income level.

While the exact definition and structure of each class system can be unclear and vague, there are still general characteristics of each category of socioeconomic structure that can help you gain a better understanding of each group. Here’s a look at the general outline for each group in the United States social structure.

The Lower Class

The lower class is typically defined as people who are earning a below average income. These people tend to have lower levels of education, work technical or manual labor jobs, or speak English as a second language. Other characteristics of the lower class include not having large amounts of possessions and have problems earning an income that supports their family.

The Middle Class

The middle class is the average American. They make an average income that can support a family. They often have some possessions but not an overwhelming amount and they have a small savings that can help them through tougher times. A middle class American’s education can vary from high school graduate to college graduate.

The Upper Class

The upper class is the top of the American economic structure. They are the people that received the highest education and have the most possessions. They typical have jobs that are considered rare or skilled.

The American socioeconomic structure can be hard to understand but these basic definitions can help you understand who is considered lower, middle and upper class.

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Moving from the Lower to the Middle/Upper Class

There is a common misconception amongst the lower class. Many people believe that if you are a part of the lower class you are destined to be a part of it forever. However, that is not the case at all. Many people of the lower class make their way to the middle and sometimes upper class. It just takes a little work and dedication.

Here’s a look at how people move up from the lower class to the middle or upper class.

Educational Opportunities

The best and fastest way to move from the lower class to the middle or upper class is to achieve a college education. There are a number of great educational opportunities out there to help the lower class get the education they need to move up to the middle and upper class. Scholarships, federal grants and work study programs are all designed to give lower class citizens the opportunity to get an educational background that can help them move up in the world.

Work Training Programs

There are a number of work training programs designed to give the lower class the opportunities and education they need to move up to the middle and upper class. These programs are different from educational opportunities because they only apply to the career field the person is in and is usually tailored for the company that is offering it. However, these programs can be great opportunities for people to move up to the middle class.

Moving from the lower to the middle and upper class can be tough but it is not impossible. With a little work it can be done.

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Defining America’s Middle Class

America's middle class 

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The American society is split into three different groups. There is the upper class, middle class and lower class. While the definition of upper and lower class are fairly straight forward the exact definition of middle class is not as crystal clear.

Middle class has always been a mysterious category that has ever-changing boundaries. These changing boundaries make it hard for experts to give a clear cut definition to the term middle class.

While it might be hard to give an exact definition to middle class, here’s a look at how experts are defining middle class.

The Economist Definition of Middle Class

Middle class is essentially the group of American citizens who earn an income that falls in the middle of the spectrum. Economists believe that there are two ways to determine the middle class. Middle class can be 20% of the population that either has higher than the lower class and lower than the upper class, or it can be the middle 60% of the population.

The Amount of People Who Think They are Middle Class

In a recent survey the number of American people who classified themselves as middle class was shocking. Over 80% of the people surveyed believed they were middle class, with only 20% citing they thought they were upper class. This just goes to show how wide the definition of middle class can be.

Middle class is a tough economic term to describe. The broad definition and ever-changing economic situation makes it hard for economists to give a clear definition of middle class.

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Making the Transition to a Non-Materialistic Lifestyle

The Fashion Centre at Pentagon City, in Arling...

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The American public is constantly being bombarded with messages to spend, spend, spend. These messages are so ingrained into people’s heads that they often feel inadequate is they are not purchasing the latest pieces of technology or jumping on the bandwagon and buying everything that catches their eye. The thing is you can still live a very happy and fulfilling life and not have to be so materialistic.

If you are trying to make the switch from being a typical American consumer and purchasing everything in sight to a frugal, buy only what you need consumer, here’s a look at some things you can do to help you change your spending habits.

Stop Going to the Mall

The mall is a materialistic consumer’s dream location. It is filled with hundreds of different shops and retailers that are all sending you messages to buy and buy in large quantities. To avoid the temptation to purchase items you don’t need to try avoid going to the mall. This will help you avoid any messages that are telling you to spend and purchase items you don’t need.

Limit Your TV Usage

Another place that is filled with hundreds of messages that tell you to spend money on items you don’t need is the TV. Advertisements are designed to give you a feeling that you need to purchase certain items to fit in. If you are trying to avoid spending your money on items you don’t need limit your TV usage and you will notice your spending habits change in no time.

Following these tips will help you make the transition to a less materialistic lifestyle.

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