Money Is Going To Be Scarce For Idaho’s Middle Class In 5 Years

In the ever-evolving economic landscape, understanding the income dynamics is crucial for planning one's financial future. This holds especially true for the middle class in Idaho, a group that forms the backbone of our local economy.

Based on recent data, the middle-class income range for a two-person family in Idaho falls between $41,527 and $123,960. The average household income is $92,780, with a per capita income of $34,919. While these figures provide a snapshot of the present, projecting future income needs is equally important.

Do you make a liveable wage? 

To maintain a living wage five years from now, the middle class in Idaho will need to account for factors such as inflation, cost of living, and potential changes in tax legislation. Based on historical trends and economic forecasts, we expect the cost of living to increase by around 2% annually. Therefore, middle-class families need to aim for an income growth rate that outpaces this to maintain their current lifestyle.

Assuming a modest annual income growth rate of 3%, a two-person family currently at the lower end of the middle-class income range ($41,527) would need to earn approximately $47,900 by 2029. Similarly, those at the upper back ($123,960) would need to make about $143,000.

However, these projections are just estimates. Each family's needs will vary based on their specific circumstances, including debt levels, number of dependents, healthcare costs, and lifestyle choices. Therefore, it's essential for families to regularly review their financial plans and adapt as necessary to ensure they can maintain a comfortable standard of living.

Why is this important to know? 

According to experts, Yahoo! Finance shared seven things the middle class won't be able to afford in the next five years, most of which are essential to living.