3 Key Signs You Can’t Actually Afford Your Middle-Class Lifestyle
Written by
Cindy Lamothe
Edited by
Jenna Klaverweiden
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Keeping up a comfortable, middle-class lifestyle can feel like a game of financial Jenga — everything looks steady from the outside, but one wrong move, and the whole tower starts wobbling.
If you’ve ever wondered whether your “I’ve got this” routine is actually masking a budget stretched a little too thin, you’re not alone.
“I’ve learned that a middle-class lifestyle can look comfortable from the outside while quietly draining a family’s finances on the inside,” said Kevin Marshall, CPA, personal finance professional at Smithii Tools. “When you look at enough bank statements and budgets, you start to see the same signs again and again that someone is living a lifestyle they can’t truly afford.”
Here are some key signs that your lifestyle might be fancier than your finances can comfortably handle — and what that really means for your wallet.
No Financial Safety Net (or One That’s Too Small)
“For me, one of the most overlooked signs of an unaffordable lifestyle is the lack of or too thin financial safety net,” said Michael Benoit, licensed insurance broker and founder of California Contractor Bond & Insurance Services.
He said many people view insurance products, cash reserves or liability policies as optional expenses and will spend the money instead on larger, more expensive homes, cars or “upgrades” to their lifestyle.
Benoit has known families that look financially secure but their net worth is at risk from a single lawsuit, medical emergency or job loss. “I can say that this is not an affordable lifestyle; it is a temporary illusion of wealth,” he said.
Feeling Like You’re Constantly Trying To Keep Up
One of the biggest signs, according to Marshall, is feeling like you’re constantly trying to keep up.
Housing costs rise, healthcare gets more expensive, tuition and childcare never seem to slow down, and even groceries can feel like they’re eating into your paycheck.
“When a family earns a solid income but still feels stretched thin every month, it usually means their fixed expenses have crept up faster than their earnings. It doesn’t happen overnight,” he said.
Savings Becomes Impossible
Another red flag, according to Marshall, is when saving becomes impossible. “I often talk to people who plan to start saving ‘as soon as things calm down,’ but things rarely do,” he said.
Not setting aside money for savings or retirement is likely a sign that your budget could be in trouble. “The problem becomes more serious if everyday expenses start landing on a credit card. Relying on credit to get through the month is one of the clearest signs that the lifestyle isn’t sustainable, even if the income looks middle-class on paper,” he said.
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