Five Key Signs You May Belong to the Lower Economic Class
Jakarta, CNBC Indonesia – President Prabowo Subianto stated that Indonesia’s extreme poverty rate has continued to fall to its lowest level in his address at the World Economic Forum (WEF) in Davos, Switzerland, recently. This has drawn the government’s attention as it pursues the goal of eradicating poverty and improving the public’s economic welfare. The piece cites GoBankingRates, which identifies five traits commonly attached to the lower middle and lower class segments:
- Housing
Housing is one of the largest expenditures for a family. If you struggle to afford living in a comfortable and safe home in a decent neighbourhood, this could indicate membership of the lower middle class or lower class.
- Occupation
Some job types clearly fall into the white‑collar or blue‑collar categories, which automatically reflect a working‑class or lower‑middle‑class image. Jobs such as restaurant servers, truck drivers, retail staff, manufacturing workers, and cleaners typically indicate a position at the lower end of the economic scale. ‘You are considered to be middle class if you work in managerial or specialist roles,’ said Nathan Brunner, CEO of Salarship. Conversely, if your job only requires low skills or is a temporary position with low pay and few benefits, the worker is generally placed within the lower social class. However, professions like teachers, nurses, accountants, and IT workers can lie between the working class and the middle class, depending on seniority and certifications they hold. Even white‑collar careers often perceived as prestigious can offer salaries that place their workers in the middle class.
- Savings and Investments
Saving and investing serve as important financial cushions and provide opportunities to build wealth in the long term. However, building such a cushion is a luxury not always accessible to those in the lower classes. In other words, if you do not have enough savings and also lack a retirement plan, you can be considered part of the lower class.
- Lifestyle
Are you able to take holidays every year? Do you eat out often or buy new goods without worrying too much? If yes, such small pleasures require a degree of financial security. These signs indicate room in the budget for small pleasures. If such points feel burdensome due to a limited budget, that can be a sign you belong to the lower class. Of course, smart budgeting can help realise these small pleasures. Yet the ability to choose freely and to enjoy occasional spending reflects the stability typically possessed by the middle class.
- Education
Do you have a bachelor’s degree? If yes, you are likely to be in the middle class. The highest level of education attained is a fairly good indicator of one’s 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‑paid jobs. However, if university studies feel too expensive and you cannot pursue them, that can be a sign that you are in the lower class.