4 Things the Middle Class Needs To Do Now To Thrive in the Trump Economy
On the campaign trail in 2024, President Donald Trump made a number of promises to the middle class. He promised that, if elected president for a second term, he would ensure the end of inflation, slash energy and electricity bills, and put a temporary cap on credit card interest rates. Trump also promised cheaper groceries; the list goes on.
Explore More:
Find Out:
We're not even 150 days into President Trump's four-year term. It's far too early to tell whether Trump will succeed in delivering on these promises in full. But at this moment, many middle-class Americans are concerned about life in the U.S. becoming even more expensive. Tariffs, for example, could cost American households $5,200 annually, according to the Center for American Progress.
Putting fear, doubt and even high hopes aside, we must ask: 'What can the middle class do right now to thrive in the Trump economy?' Consider the following expert-provided moves to make.
Sean Babin, certified financial planner (CFP), CEO and lead financial advisor at Babin Wealth Management, highlighted the many challenges staring down the middle class right now: Rising home prices, rising childcare costs, rising education costs, rising healthcare costs and rising food costs. It's a lot to keep up with and can push you into high-interest debt if you're not amply prepared.
Babin recommended having an emergency fund with at least three to six months' of living expenses in it. If you can set more aside than that (in a HYSA), absolutely do that. Suze Orman champions an emergency fund that will float you for 12 months.
Be Aware:
After the worst of the pandemic passed, Babin noticed a type of spend-happy FOMO rage among the middle class.
''You only live once' became a rallying cry across America,' Babin said. 'After being locked down for over a year, people were eager to make up for lost time, traveling, dining out, splurging on experiences, and buying things they'd long postponed. This wave of so-called 'revenge spending' saw many consumers throwing caution to the wind, often spending beyond their means. From blueberries to plane tickets, demand soared, and so did prices. The prevailing mindset was: Put it on the credit card and deal with it later. But as the bills piled up, so did the debt and its consequences are now being felt.'
The middle class must reduce their spending if they want to survive these economic challenges. Chiefly, they must eliminate credit card debt.
In 2023, the average outstanding debt per cardholder in the U.S. was about $6,088 and the average interest rate on credit cards is 21.47%, according to TransUnion. And credit card debt delinquency has risen since then.
So, while we all kinda, sorta know that credit card debt is not good, we don't necessarily recognize how horrifically lethal it is.
Yes, to some extent, the middle class can't be blamed for their credit card habit. We're fed promotional bait from credit card companies day and night, and even if we're pulling in six figures, we're living paycheck to paycheck or close to it.
But we have to be real with ourselves. Putting food on the table is not the sole cause of credit card debt in the U.S; it's also things like buying luxury goods and electronics.
'Carrying a balance on a credit card is a big no no that will keep you trapped in the middle class,' Babin said. 'Have a plan to pay off high-interest rate debt as soon as possible. Might have to say no to some family vacations and nights out. It takes work to pay yourself first.'
You have to invest and you have to invest in a variety of assets.
'Stocks, real estate, gold, your own business,' said Joseph Camberato, CEO at National Business Capital. 'The middle class often gets stuck trying to save their way to stability, but that's not enough anymore. The wealthy get wealthier because their money is always working for them. They buy things that grow in value: Assets that rise when prices rise. Their money is working for them while they sleep. Investing becomes their second job and focus. That's how they stay ahead of inflation. If you're not investing, you're falling behind.'
And remember, a tumultuous market is still a good one to invest in. Do your homework, stay calm and be in it for the long haul — and stop putting this off.
Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
More From GOBankingRates
4 Affordable Car Brands You Won't Regret Buying in 2025
How Much Money Is Needed To Be Considered Middle Class in Every State?
This article originally appeared on GOBankingRates.com: 4 Things the Middle Class Needs To Do Now To Thrive in the Trump Economy
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Politico
9 minutes ago
- Politico
Supreme Court limits outside access to DOGE records
The Supreme Court has reined in a lower-court order that allowed a watchdog group wide-ranging access to records of the Trump administration's Department of Government Efficiency. The high court's majority said a judge's directive allowing Citizens for Responsibility and Ethics in Washington to examine DOGE's recommendations for cost savings at executive branch agencies was 'not appropriately tailored.' In a two-page order Friday, the Supreme Court said such access was not a proper way to resolve an ongoing dispute about whether DOGE is a federal agency subject to the Freedom of Information Act or operates as a presidential advisory body that does not have to share its records with the public. 'Separation of powers concerns counsel judicial deference and restraint in the context of discovery regarding internal Executive Branch communications,' the court's majority wrote. All three of the court's liberal justices indicated they disagreed with the decision, but none provided an explanation of her views.
Yahoo
9 minutes ago
- Yahoo
Chris Hayes: Trump's 'secret police': Masked agents' sweeping immigration raids raise concern
This is an adapted excerpt from the June 5 episode of 'All In with Chris Hayes.' The term 'secret police' invokes a kind of haunting specter. When we see representations of it in movies or history, we immediately identify it with a certain kind of regime: One that tramples people's liberty with no accountability. We associate it with authoritarian governments and dictatorships like the former Soviet Union, where people, usually armed, could wield the authority of the state but were, themselves, totally unaccountable in the same way. Whatever issues there are with American policing — and there are many — at least our police officers have names on their uniforms and badge numbers. But now, in the era of immigration under Donald Trump, one cannot help but notice that in clip after clip, interaction after interaction, the people enforcing the president's policies have all the qualities that one would associate with the concept of 'secret police.' In videos, these individuals are usually masked and either wearing plain clothes or irregular uniforms. They won't give their names or say what agency they're with. Watching it feels wrong, weird, alien and menacing. It does not feel like these law enforcement officials are subject to the authority of a democratic government. It's so striking, in scene after scene, to see regular people asking masked agents, 'Who are you?' and 'What are you doing?' and not receiving an answer. That's what we saw play out in one of the first videos of this kind to be made public: The arrest of Columbia student and lawful resident Mahmoud Khalil. In that video, you can see plainclothes officers apprehending Khalil in the lobby of his building. The officers pointedly refused to identify themselves or what agency they were with. 'We don't give our name,' one man said, after handcuffing and detaining a legal resident of the United States. Not long after that, we got video of the arrest of Tufts University graduate student Rumeysa Ozturk, who was snatched off the street by masked agents and led away in handcuffs. In New Bedford, Massachusetts, there was the chilling scene from last month in which masked agents broke a car window and forcibly removed a man they say was in the country illegally. Just last weekend, in Great Barrington, Massachusetts, masked agents detained an apparently undocumented gardener at his place of work. In San Diego that same weekend, residents tried to hold back what appeared to be militarized agents who were reportedly executing an immigration raid on local businesses. We've also got allegations of all kinds of lies, manipulation and subterfuge. Eyewitnesses in Tucson, Arizona, allege agents posed as city utility workers as part of an arrest attempt. There have been reports of agents performing wellness checks on children, which critics say is a trap for immigration enforcement. All this feels like something distinct from the normal forms of policing and law enforcement that we're used to. As the writer M. Gessen, who was born in the then-Soviet Union, put it in a column for The New York Times: 'The United States has become a secret-police state. Trust me, I've seen it before.' 'The citizens of such a state live with a feeling of being constantly watched. They live with a sense of random danger,' Gessen wrote. 'Anyone — a passer-by, the man behind you in line at the deli, the woman who lives down the hall, your building's super, your own student, your child's teacher — can be a plainclothes agent or a self-appointed enforcer.' This administration is treating people as if they have no rights, as if they can be rounded up at whim without any due process. That is the legal theory of the Trump administration. It believes that immigrants in this country don't have rights, even though that's very clearly not true. The Constitution is clear on this, and precedent is clear on this: Immigrants have due process rights. But the Trump administration seems to believe the state can do whatever it wants to people. According to Trump's border czar, Tom Homan, the agents in these videos are wearing masks for their own safety. 'They wear a mask because they're trying to protect themselves and their families,' Homan said on Fox News. 'Agents are getting doxed every day, their pictures and phone numbers being put on telephone poles. These leftists are following and filming when they go home from work at night.' In a statement to NBC News about these recent immigration crackdowns, Assistant Homeland Security Secretary Tricia McLaughlin said, 'Under Secretary Noem, we are delivering on President Trump's and the American people's mandate to arrest and deport criminal illegal aliens and make America safe.' This article was originally published on
Yahoo
9 minutes ago
- Yahoo
Trump administration to pay nearly $5M in wrongful death lawsuit of Jan. 6 rioter shot by police
The Trump administration will pay a $4.975 million settlement in the lawsuit over the wrongful death of Ashli Babbitt, who was killed by a U.S. Capitol Police officer after storming the Capitol on Jan. 6, 2021. Babbitt — a 35-year-old from California and veteran of the Air Force who went to Washington for President Donald Trump's rally — was among an early group of rioters that reached the doors of the Speaker's Lobby, adjacent to the House chamber, while lawmakers were still evacuating. Details of the settlement were released by Judicial Watch, a pro-Trump advocacy group that represented her estate and family members in the lawsuit. The Department of Justice did not immediately respond to request to comment. The settlement is likely to inflame tensions on Capitol Hill over the riot. Outgoing Capitol Police chief Thomas Manger blasted the reported settlement last month, saying it 'sends a chilling message to law enforcement nationwide, especially to those with a protective mission like ours.' As members of the mob standing near Babbitt pounded on the doors and cracked glass window panes, outnumbered police officers stepped aside and ceded the hallway to the rioters. Moments later, Babbitt is seen on video attempting to enter the lobby through a shattered window. That's when Capitol Police officer Michael Byrd fired the fatal shot. Byrd was investigated and cleared by local and federal authorities. Babbitt was the only rioter killed by police, but several others died either during or in the hours immediately after the protest. Over 100 Capitol Police officers were injured during the protest. The lawsuit was filed in California by Babbitt's family in 2024, claiming wrongful death, assault and battery, as well as negligence claims. The lawsuit was set to go to trial in 2026, but both parties agreed to the settlement. A joint filing Friday from government attorneys and Babbitt's acknowledged that a settlement was reached, but did not disclose details. 'This fair settlement is a historic and necessary step for justice for Ashli Babbitt's family. Ashli should never have been killed, and this settlement destroys the evil, partisan narrative that justified her outrageous killing and protected her killer,' said Judicial Watch President Tom Fitton in a press release on the settlement. Trump has repeatedly praised Babbitt, portraying her as an innocent patriot and decrying her death at the hands of Capitol police. It's part of the Trump administration's efforts to repaint the protest on Jan. 6 as a day of patriotism and freedom of expression, rather than an unprecedented insurrection widely denounced in 2021 by Republicans and Democrats. Trump issued sweeping pardons for nearly all of those charged or under investigation for their actions on Jan. 6, including over 300 charged with assaulting the police. Numerous Jan. 6 rioters have been arrested on unrelated charges since. Kyle Cheney contributed to this report.
