‘Money’ is a common factor of stress in middle class families. This stress is caused by uncertainties, lack of financial knowledge, bad financial habits, low savings etc. Also, This financial struggle and insecurity increases with the rising healthcare cost and inflation.

Let’s see where middle class people generally have to struggle financially:-

1.Struggle of income:-A majority of middle class people are working or have small businesses. But still many struggling to get a decent income to satisfy their needs and wants. They find it difficult to lead a comfortable life with limited income. Further, competition and job insecurity brings more instability in the life.

2.Struggle of liquidity:- Most of the middle class people still struggle with the liquidity. Still today, many do not understand the importance of having ‘emergency fund’ or even if they do, they do not have any such savings or fund. This may be because people do not have enough savings or cash in their bank to meet the unexpected expenses.

3.Struggle of rising cost of healthcare and standard of living:- Rising cost of living and high healthcare cost is a major challenge for middle class people and saving money with the limited income source makes the struggle real. The major portion of their income goes into basic needs like groceries and housing. This makes it hard for them to save money as spending is more than income.

4.Struggle of Debt management:- Due to limited income, rising cost;  people often move to credit cards or loans to satisfy their needs. Though credit cards or personal loans are helpful for unexpected or unplanned expenses, many middle class people take it considering easy money and use it regularly without giving any serious thought. This uncontrolled spending increases the debt burden and then the struggle starts between income, expenses and savings.

5.Struggle of work life balance:- This may not be related directly to finance but the long working hours, office/work stress impacts the work-life balance of many middle class people. This also affecting badly to their health, family & relationships.

6. Struggle for retirement planning:- Retirement planning is still one of the last priority for many middle class people. It may be due to low savings, uncontrolled spendings, relying only on instruments like EPF, VPF or PPF etc. Further, for many middle class people retirement is like a ‘far away goal’, therefore, they do not start early planning for their retirement and struggle starts when it’s late or during retirement.

7. Struggle to give good life to kids:- Child/Children are the centre of any family and parents always try to give a bright and financially secure future to their children. But for many middle class people this dream brings lot of struggle, adjustments, regrets and issues.

How to deal with the financial struggles?

There are ways to deal with the financial struggles. Worrying about financial problems not going to solve the issue. Understanding the problems and making a plan helps to ease the stress and make you prepare to face these challenges.

More saving:- If income is limited one can control their spending and can save more. This is possible through tracking the expenses regularly, cut down on unnecessary spending and doing budgeting.

Covering Basics:- After saving, next step is to cover the basics i.e. having good emergency fund with enough health & term cover. Saving money and covering your basics can help a lot in dealing with this financial insecurity.

Adopting the minimalist approach:- This means to embrace a life with meaningful experiences over meaningless possessions. In other words, minimalism is a practical way to lead a simple life rather than on consuming and maintaining things that we do not really need.

Making a plan and take small steps:-It’s always better to list down the things where you are struggling financially. Once you list down your struggles, you can find out the solution or ways to overcome it like making a budget, paying off high interest debt first, curb your spending, finding a job or starting a side hustle for additional source of income etc. Accordingly you can make a plan and draw the steps required to be taken. Make sure to take small steps but be disciplined and stick to your plan.

Trying to increase the income sources: In today’s increasing inflation and standard of living, it’s good to have another source of income or some passive source of income.

Keeping debt low and manageable:– Keeping debt low and manageable is always recommended as it gives scope to more savings and keeps you away from financial stress.

Investing your saving for right goals:- Only saving money not going to help but investing money for right goals in suitable options can help you to secure future of you and your family.

Also, make sure to read and learn more about personal finance which can help you to take informed decision and can save you from making financial mistakes.