Say you’re riding high — financially speaking. You’ve acquired a middle class lifestyle and enjoy all the perks that come with it: a nicer home, financial stability, a growing nest egg.

But inflation creeps up on us all; and, according to experts, there are things you won’t be able to afford anymore in the next five years.

Real estate expert Alyssa Huff and other financial analysts predict that middle-class families will face significant financial challenges over the next five years due to rising housing costs, tuition fees, healthcare expenses, and inflation. Huff advises middle-class families to start planning now to maintain their financial well-being.

Key areas of concern include:

  1. Extended Family Trips: CEO of CoinLedger, David Kemmerer, notes that extended family trips, especially overseas, may become unaffordable due to rising costs.
  2. New Cars: Melanie Musson from Clearsurance highlights that the increasing prices of vehicles, driven by safety features and EV technology, will likely make new cars unaffordable for the middle class.
  3. Private School Tuition: DebtHammer CEO Jake Hill warns that rising tuition rates could soon outpace middle-class incomes.
  4. Homeownership: Carter Seuthe of Credit Summit suggests that rising housing costs and competitive real estate markets may push homeownership out of reach.
  5. Healthcare Costs: Financial advisor Mike Kojonen emphasizes the growing burden of healthcare and long-term care expenses, urging families to integrate healthcare planning into their retirement strategies.
  6. Leisure and Travel in Retirement: Kojonen also notes that rising travel costs may require middle-class retirees to adjust their savings strategies.

Experts agree that proactive financial planning is essential to navigate these upcoming challenges and maintain the middle-class lifestyle.