Housing and education are the biggest sources of debt for middle class Americans.

Financial Friday

Financial Friday – May 6, 2016: More Money, Less Savings

Financial Friday’s posts are meant not only to educate, but also to encourage self-evaluation, self-awareness, and taking the necessary steps to achieve financial freedom.

Today’s article discusses the secret crisis of many middle class families in America. Many American’s get a standard cost of living increase in pay each year. However, as incomes go up, this doesn’t mean there is more money for savings or increasing assets. Why? Because as your income goes up, so does your expenses.

What I found most interesting is middle class American families spend the most on housing and education. Often times, this goes hand in hand. Families will buy houses they can’t quite afford to get their kids into the best school districts. With these houses comes increased costs and more consumption. Many middle class families do not have healthy financial lives. Educate yourself on how to avoid following into the pressures that lead to financial insecurity.

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