Dec 7, 2023
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Americans are feeling the need more than ever to stretch their dollars – and it’s not hard to figure out why: we’re simply not making enough to keep up with high inflation.
And even though the average income for middle-class Americans has risen from $74,000 in 2010 to $90,000 in 2022, to have the same effective income as $74,000 in 2010, you’d need to make roughly $101,000 today.
So while our average income increases yearly, our buying power has dropped. Which means the 52% of American households that make up the middle class may be feeling that their wallets are lighter, and they don’t know what they can do about it because they’re still earning more than they used to.
We’ve put together a few smart ways for American households to keep more of their hard-earned money. Read on to discover how you too can make your income go further.
Stop overpaying for home and car insurance
Just like food, gas, and energy prices, home insurance premiums are on the rise. The average price of a home insurance policy is nearly 40% higher than it was 12 years ago.
But you can save instantly on your home and car insurance by comparing prices from different home insurance companies.
SmartFinancial, for example, makes it incredibly easy to find the best insurance rates in your local area for your home.
All you need to do is share your zip code and answer a couple of quick questions. SmartFinancial will then sort through over 200 insurers in a few minutes to find you the best deals available and the discounts you could collect on your home insurance.
A cheaper insurance rate can certainly cut down expenses, leaving you with more in your account every month to spend on what you love.
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Don’t feel forced to play the stock market game
Alternative investments have traditionally been exclusive to ultra-high-net-worth individuals. But new platforms make it easier and cheaper for everyday investors like you to buy in, grow your portfolio value, or find a much needed stabilizer.
For example, contemporary art has outperformed the S&P 500 by 131% for the past 26 years, and it has a near zero correlation to stocks, according to Citi. And platforms like Masterworks let you invest in shares of individual works by world-famous artists — just select which shares you want to buy and they will handle the rest.
Similar to art, fine wine has historically offered a great hedge against inflation as it’s more stable than stocks. Vinovest for example, is a platform that removes the constraints of specialized knowledge and logistical factors like proper storage so anyone can invest in fine wine.
They do all the work for you and will even select the best wines for your portfolio based on your goals, then tell you the ideal times to sell to get the most value for your wine.
Another option for investing outside the stock market is real estate, which has surprisingly demonstrated resilience in times of rising interest rates.
Origin — a private equity firm — offers bundled real estate investments by acquiring and operating multifamily properties. Their team provides accredited investors with the opportunity to access this lucrative asset without the responsibility of property management.
Plus, because Origin’s founders invest company capital in all the funds they offer, you know they’ve got skin in the game too and can trust that your goals are aligned.
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