The term “middle class” is widely used in American discourse, but few people can clearly define it or know if they truly belong to it, , according to Pew Research and Yahoo Finance.

According to the Pew Research Center, just over half of U.S. households—51% as of 2023—qualify as middle income, a noticeable drop from 61% in 1971. This decline suggests that nearly half of Americans no longer fit within what’s traditionally considered the middle class.

Pew defines middle-income households as those earning between two-thirds and double the national median income, which translates to a range of about $56,600 to $169,800, based on 2022 government data. Even among those within that range, many feel financially stretched.

A survey by the National Foundation for Credit Counseling revealed that more than half of U.S. adults say they are unable to make financial progress, while nearly half report that they are constantly just treading water.

Yahoo writes that for households trying to maintain their middle-class status or move up, one critical step is reducing consumer debt. High-interest obligations can quickly become unmanageable, and rising bankruptcy rates reflect that risk—there were over 494,000 personal bankruptcy filings in the U.S. in 2024, more than 60,000 higher than the year before.

Paying down debt can ease monthly financial burdens and provide more stability. Another key safeguard is having an emergency fund. Setting aside enough savings to cover at least six months of living expenses can protect a family from sudden income loss or job disruption, giving them time to adjust without sacrificing their standard of living.

Increasing income is also an important strategy. Picking up a side hustle or creating a passive income stream could help a household reach or exceed the upper threshold of the middle-income range. Earning more doesn’t just improve lifestyle—it also offers a financial buffer against downturns and rising costs.

At the same time, managing spending is essential, especially in a climate of economic uncertainty. Many Americans have turned to "doom spending," making impulsive purchases as a response to stress, which only deepens financial insecurity.

Careful budgeting and expense tracking can help people identify where their money is going and highlight areas where they might cut back. Insurance costs are a common area of overspending. The average American pays over $2,400 annually for full-coverage auto insurance and more than $2,300 for homeowners insurance, and both are projected to rise further in 2025.

Comparing rates and switching providers can lead to significant savings—some drivers have reported reducing their monthly premiums by doing just that.

Ultimately, whether or not you fall within the middle-class income range, financial stability depends on more than earnings. Controlling debt, building savings, growing income, and being intentional with spending are all crucial steps to maintaining or improving your economic position in today’s shifting landscape.