The Shrinking Middle Class
By: Maureen McGuire
Updated: November 8, 2012
Colleen and Bryan Law and their two young daughters live in a modest home in Victor.
Both work outside the home- Bryan in a school and Colleen for local media. Like many families, they sometimes struggle to juggle the budget.
"When the money runs out it's like, okay. We're going to eat spaghetti tonight and we're going to just stay in," Bryan said.
Now more than ever they are focused on living within their means.
"We aren't going to be out spending all the time, and spending on big things. We need cars, we don't need a giant house. We survive from that," Bryan said.
The Law family is not alone. Experts say across the country there is a new sobriety when it comes to personal budgeting. While daily expenses have gone up, incomes have remained flat or gone down, making cash harder to come by. At Consumer Credit Counseling of Rochester, financial educator Destiney Fraguada says more of her clients are focused on making it day-to-day.
"Gas, food, shelter's increasing. How can we balance everything out, so we don't feel like we're living paycheck to paycheck," Fraguada said.
Fraguada says the basic fundamentals of money management apply, no matter what is taking place on a national level:
1. Know Your Financial Situation- compare your monthly expenses with your monthly net income, and make changes where appropriate.
2. Deal With the Big Issues- if you have unpaid medical debt or tax liens, tackle them head-on by contacting your creditors to make repayment arrangements.
3. Expect The Unexpected- try to establish an emergency savings account equal to at least three months of income.
4. Check Your Credit Report- plan to pay off delinquent accounts and dispute any errors.
5. Plan For Your Future- save for retirement.
Despite the tough economy over the last few years the laws have celebrated some successes. Bryan paid of his student loan, and he and Colleen began saving for their girls' education. They also got help when they needed it.
"If you really are in trouble, you can't put the bills in a drawer, you can't do it. You have to talk and I think if you seek help, there's ways around stuffing bills in the drawer. I think that there are people out there that can help you," Colleen said.
"It is sad, because sometimes I think back to when it was a little bit better and we were doing a lot more. We're not doing as much, but we are spending time with each other and the family, and that's just as good in my opinion," Bryan said.
No one knows what the future will bring, but by sticking to the basics the Laws found something worth treasuring: a healthy family, financial or otherwise.
For help with your finances or to find resources for help in financial security, click here.
Both work outside the home- Bryan in a school and Colleen for local media. Like many families, they sometimes struggle to juggle the budget.
"When the money runs out it's like, okay. We're going to eat spaghetti tonight and we're going to just stay in," Bryan said.
Now more than ever they are focused on living within their means.
"We aren't going to be out spending all the time, and spending on big things. We need cars, we don't need a giant house. We survive from that," Bryan said.
The Law family is not alone. Experts say across the country there is a new sobriety when it comes to personal budgeting. While daily expenses have gone up, incomes have remained flat or gone down, making cash harder to come by. At Consumer Credit Counseling of Rochester, financial educator Destiney Fraguada says more of her clients are focused on making it day-to-day.
"Gas, food, shelter's increasing. How can we balance everything out, so we don't feel like we're living paycheck to paycheck," Fraguada said.
Fraguada says the basic fundamentals of money management apply, no matter what is taking place on a national level:
1. Know Your Financial Situation- compare your monthly expenses with your monthly net income, and make changes where appropriate.
2. Deal With the Big Issues- if you have unpaid medical debt or tax liens, tackle them head-on by contacting your creditors to make repayment arrangements.
3. Expect The Unexpected- try to establish an emergency savings account equal to at least three months of income.
4. Check Your Credit Report- plan to pay off delinquent accounts and dispute any errors.
5. Plan For Your Future- save for retirement.
Despite the tough economy over the last few years the laws have celebrated some successes. Bryan paid of his student loan, and he and Colleen began saving for their girls' education. They also got help when they needed it.
"If you really are in trouble, you can't put the bills in a drawer, you can't do it. You have to talk and I think if you seek help, there's ways around stuffing bills in the drawer. I think that there are people out there that can help you," Colleen said.
"It is sad, because sometimes I think back to when it was a little bit better and we were doing a lot more. We're not doing as much, but we are spending time with each other and the family, and that's just as good in my opinion," Bryan said.
No one knows what the future will bring, but by sticking to the basics the Laws found something worth treasuring: a healthy family, financial or otherwise.
For help with your finances or to find resources for help in financial security, click here.
