5 Money Issues the Middle Class Should Focus On in 2025, According to Experts

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Many middle-class households struggle with inflation, debt and a lack of emergency savings to cover unexpected expenses. 

“The best strategy individuals can follow in rapidly changing markets is to maintain flexibility by holding more money than usual in a bank account,” said Paul Tyler, co-host of “That Annuity Show.” “Rainy day funds could come in very handy over the next few months.” 

Here are the five money issues the middle class should focus on in 2025, according to experts. 

Emergency Savings

Many middle-class families face a critical gap in their financial safety nets, with 54% of U.S. adults reporting they have enough emergency savings to cover at least three months’ expenses, according to the Federal Reserve, or Fed. This leaves nearly half unprepared for unexpected events like medical emergencies or job loss.

“Housing, childcare and transportation expenses are increasing continuously, leaving less space in the budget for savings or unexpected costs,” said Kraig Kleeman, CEO of The New Workforce. “Families are frequently stretched thin, with many wondering how to set aside money for the future while managing current expenditures.” 

While wages are keeping up with inflation for the first time in several years, it may only be true for some, especially the middle class.

“Establishing a robust emergency fund — typically three to six months’ worth of living expenses — can prevent the need to dip into retirement accounts or use credit for unforeseen events,” said Melissa Pavone, founder of Mindful Financial Partners.

Budgeting

The middle class’s financial health in 2025 will depend largely on how policies under President-elect Donald Trump unfold, said Maxim Manturov, head of investment research at Freedom Finance Europe. 

“The threat of tariffs could drive the cost of products higher as imports become more expensive, and this could mean that building a rainy-day nest egg is more important than ever before,” Manturov said.

Manturov advised middle-class households to take a close look at their monthly income and expenses, allocating 60% of discretionary funds to non-essential items, such as dining out and holiday savings, and reserving 40% for savings. 

Inflation

Inflation remains a key issue for middle-class households, affecting their ability to maintain their lifestyle and meet next year’s financial goals. 

In October, the annual inflation rate rose to 2.6%, up from 2.4% in September, marking the first increase in seven months. Despite this uptick, inflation has declined year-over-year from 3.4% in December 2023.

“Inflation remains a significant concern, and the middle class should prioritize addressing its impact on their finances,” said Michael Martin, vice president of market strategy at TradingBlock. “Rising prices erode the purchasing power of cash, making it harder to save and maintain a standard of living.”

Managing Debt

The average American has nearly $8,700 in credit card debt, according to a USA Today analysis using 2024 data from the U.S. Census and the Federal Reserve.

“Debt has a tendency to accumulate unexpectedly,” said Jason Hishmeh, co-founder of Varyence. “One moment you have a minor credit card balance; the next you find yourself overwhelmed by monthly obligations.”

Hishmeh recommended the following strategies to keep debt manageable:

• Pay with a strategy: Reconsider using credit cards if you can settle a purchase within one to two months. 
• Automate your budget: Use money management apps to monitor your expenses and uncover budget weaknesses before they become problematic. 
• Say “no” to FOMO: Reduce social media use to resist extravagant spending during the holidays or on electronic devices. 

“Bear in mind, no one is sharing their financial statements online,” Hishmeh said.

Investing

Middle-class households must counter inflation’s effects by re-evaluating their investment strategy, Martin said.

“One key approach is investing in assets that can appreciate over time,” the expert noted. “The U.S. dollar will likely face further devaluation due to persistent federal spending, making shifting from holding cash to investing even more critical.”

Martin recommended real estate as a stable option for generating rental income and the stock market as an accessible wealth-building tool. 

Finally, invest with the long-term in mind, said Asher Rogovy, chief investment officer at Magnifina. 

“The best-known investors built their fortunes over decades with careful and deliberate research, analysis and stock selection,” Rogovy said. 

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