The salaries from the last decade has not increased much for a new employees as well as for the old employees it is around 4% year to year rise. If I see the salary of the freshers, 10 years back the salary was 3 Lakhs per annum whereas as of today the salary for freshers is just 3.25 lakhs per annum.
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But at the same time if you see the inflation data, it has been around 8 to 10%. So though the income is same, the expenses has been doubled. And thus the saving money is decreasing. People who think of saving more and more, doesn't have much choice now because since the expenses have increased their saving decreased. And thus the middle class is actually being pushed to lower class.
The difference between the lower clas & middle class to the upper class is widening. And thus the middle class is shrinking like anything. People who are earning good are trying hard to get from middle class to the upper class and they might succeed but people who are not saving much is just 1 emergency away from bankruptcy. A lot of people could not save for emergency because the expenses increasing much more and thus if there is any emergency comes, all their savings will be wiped out.
So what should the middle class be doing. The first and foremost if that to try to increases their salary and lowering the expenses. I know it's hard at the starting but if you try to cut little by little tou can acheive it. We have to save for emergency first and then start investing as little as possible. When you start, little is fine and when you are pro you can start investing as much as possible.
