5 Key Characteristics of the Lower Class: Do You Identify With Them?
5 Key Characteristics of the Lower Class: Do You Identify With Them?
Jakarta, CNBC Indonesia - In his speech at the World Economic Forum (WEF) in Davos, Switzerland, earlier this year, President Prabowo Subianto stated that the number of people living in extreme poverty in Indonesia continues to decline, reaching its lowest level.
This achievement is a key focus for the government, which is committed to eradicating poverty and improving the economic welfare of the community as a whole.
To understand a person’s economic position, there are several indicators that can be used to categorize people into specific classes. Citing GoBankingRates, there are at least five key characteristics that usually indicate whether a person belongs to the lower or lower-middle class.
- Housing
Housing is one of the largest expenses for a family. If you are struggling to afford a comfortable and safe home in a decent environment, this could be an indicator that you belong to the lower or lower-middle class.
- Employment
Some types of jobs clearly fall into the white-collar or blue-collar categories, which automatically reflect the image of the working class or middle class. Jobs such as restaurant waiters, truck drivers, retail employees, manufacturing workers, and cleaning services usually indicate a position at a lower economic level.
“You are considered to be in the middle class if you work in a managerial or specialist position,” said Nathan Brunner, CEO of Salarship.
Conversely, if your job only requires low skills or is a temporary position with low wages and few benefits, then that worker will generally place you in the lower social class.
However, professions such as teachers, nurses, accountants, and IT workers can be in between the working class or middle class, depending on the level of seniority and certifications they hold. Even prestigious white-collar careers can still provide moderate salaries and place workers in a middle-class lifestyle.
- Savings and Investments
Saving and investing is an important financial buffer and provides opportunities to build wealth in the long term. However, building such a reserve is a luxury that is not always accessible to the lower class.
In other words, if you do not have enough savings and also have no retirement plan, then you are likely to be in the lower class.
- Lifestyle
Are you able to take a vacation every year? Do you often eat out or buy new things without too much worry? If so, these small pleasures require a foundation of financial security. These things indicate that there is room in the budget for small pleasures.
If these things feel difficult due to budget constraints, this could be a sign that you belong to the lower class.
Of course, smart budgeting can help make these small pleasures possible. However, the ability to choose and the economic freedom to enjoy occasional expenses more reflects the stability that is generally possessed by the middle class.
- Education
Do you have a bachelor’s degree? If so, you are likely in the middle class. The highest level of education you have achieved is a good indicator of your position on the economic ladder. Systemic barriers often prevent individuals from the lower class from accessing education.
Higher education usually opens the door to better-paying jobs. However, if college feels too expensive and you cannot afford it, this could be a sign that you are in the lower class.
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