Here’s the Minimum Net Worth To Be Middle Class by 2030

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Let’s be real: “Middle class” doesn’t mean what it used to. Once upon a time, it meant a house with a yard, a decent job, maybe a vacation or two a year. But fast forward to today, and the cost of just existing has skyrocketed. Groceries, housing, healthcare — it’s all adding up, and it’s forcing many of us to rethink what financial stability even looks like.

So where does that leave the middle class? And more importantly, how much net worth will you need by 2030 to still land in that category? 

Whether you’re trying to plan ahead, catch up or just stay informed, here’s a breakdown that will help you understand the financial benchmarks shaping the future of the American middle class.

Consider the Future of Inflation

According to Dennis Shirshikov, professor of finance at City University of New York and head of growth and engineering at GrowthLimit, in order to find the minimum net worth to be considered middle class by 2030, we have to take into consideration inflation, expected income growth and distribution of wealth. 

“The median household net worth in the U.S. was approximately $121,700 in 2020,” he said, citing the latest data from the Federal Reserve’s Survey of Consumer Finances.

He added that with average rates of inflation about 2% a year, we could assume that the cost of living and the value of assets will continue to increase, which would in turn influence how much net worth would count as middle class.

Here’s How It Could Look in 2030

By 2030, Shirshikov observed that assuming inflation remains near 2%, the dollar figure denoting the middle class could realistically be adjusted upwards to between $150,000 to $175,000 for an individual or family. 

This would explain higher housing prices, education and health costs, three of the things that are most affecting the middle class. But, he also noted the exact number depends a lot on where you live.

Investments Will Play a Crucial Role

Shirshikov said there is a lot of aggregated wealth through investments. 

“Middle-class families have a better chance of generating wealth by owning a home, saving in retirement accounts and investing,” he noted.

Investments like 401(k) plans and IRAs could help someone who has been adding to a retirement account all along see their wealth grow by even more by the time 2030 rolls around, assuming an annual return of 5%. 

Indeed, he said saving just $5,000 a year, assuming the saver began with a $100,000 balance, would generate an ending balance of more than $175,000 by the target date of 2030 when adjusted for steady investment growth.

Save and Hold Steady Investments 

Most people will need to save and invest for retirement to have a fighting chance at reaching goal net worth by 2030. According to Shirshikov, income needs to come from diverse sources such as real estate and equities, concentrating on index funds and low-cost ETFs. 

“I’ve watched many of my clients increase their wealth through a combination of rental properties and automated investing, which help them to steadily grow their wealth without facing excessive levels of risk,” he explained.

The middle class of 2030 by contrast will depend heavily on investments and home ownership and it is vital for people to focus on these as part of their long-term financial plan.

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