If your goal is to reach the upper middle class, you will be disappointed.
“We live in an economic age where the middle class has lost its glory and, frankly, the upper middle class has lost most of its glory. [is not] Completely unaffected by this new reality,” says Maf Aklado, financial expert and general manager of Coupon Snake.
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In the past, she says, being upper-middle class meant being able to afford cheap or out-of-the-ordinary comfort.
“Because you have earned enough to be secure in your financial future, because you have built enough to feel secure or you have enough plans to guarantee the protection of your financial future.”
However, with inflation and a highly volatile financial market, the upper middle class is not what it once was.
Here are some key things that the upper middle class can no longer afford.
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Recreational vehicles
“The upper middle class can afford boats, snowmobiles, RVs or any other recreational vehicle they want,” says Melanie Musson, financial expert with Insurance Providers.
She noted that not only are the values of those goods increasing rapidly, but the interest rates on loans are high, making them even more expensive.
Learn more: How I went from middle class to upper middle class
International travel
Many in the upper middle class could afford to spend a fortnight or even a summer abroad.
“Now, with housing, school and grocery costs rising, while investments are precariously balanced and at risk of loss, they can’t afford to spend money on luxury travel,” Musson said.
Day spa treatments
“The upper-middle class doesn’t need to eliminate spa treatments entirely,” Musson says. “But they should be more careful about spacing out visits because they are expensive, especially if there are many other urgent needs that need to be paid for.”
Also, besides the high cost of spa treatments, the tipping culture demands that you spend another 20% tipping, she said.
Sending kids to college debt free
“Today, upper-middle-class families join the list of people who need credit to pay for their children’s college educations,” Aclado said. “The truth is that the cost of college is no longer as affordable for upper-middle-class families as it once was, because amid rising tuition costs, being an accepted and respected member of society is now tied to their children receiving a college education.”
She explained that this will increase the pressure to send their children to college.
“As well as upper-middle class incomes not really keeping up with inflation, being able to send their kids to college without needing a student loan is something the upper middle class can’t afford.”
A luxurious retirement
A luxurious retirement is on the list of things the upper middle class can no longer afford.
“The upper middle class is now one of the classes worried about not being able to retire because inflation and the increased cost of living have made it harder for them to build a healthy retirement portfolio,” Aclado said.
Paying off the mortgage
According to Aclado, being able to pay off a mortgage long before retirement is one of the financial luxuries reserved for the upper middle class and ultra-wealthy.
“Not only do they enjoy this privilege, but they can afford it very easily. However, the high cost of living now is just one of the things that robs them of it.
Home ownership in desirable urban areas
Another major change is the reduced availability of homeownership in desirable urban areas, said Justin Godure, real estate expert and CEO of Capital Max.
“Property values in high-end neighborhoods have risen so much that even dual-income families are pricing themselves out,” he explained. “In summary, what was affordable a decade ago now seems a stretch, even for those who have maintained a solid financial position.”
He said that while inflation affects everyone, its impact on the upper middle class has exposed just how precarious financial security can be.
“I’ve seen firsthand how inflation and rising costs have redefined what the upper middle class can afford,” Godur said. “Inflation has stealthily eroded purchasing power, and even those who once felt financially secure are now feeling the pinch.”
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This article originally appeared on GOBankingRates.com: 7 Things the Upper Middle Class Can’t Afford
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