A new analysis highlights that the middle class is shrinking. According to Pew Research, about 51% of American households fall into this category now, compared to 61% in 1971. They define the middle class income range as roughly $56,600 to $169,800 based on 2022 government data. Financial stress appears to be rising alongside this trend. Personal bankruptcy filings increased in 2024, reaching over 494,000. Surveys indicate that about half of adults feel stuck financially or are just treading water. The article suggests standard moves to improve stability, such as using the snowball or avalanche methods to clear debt and keeping emergency funds in high-yield savings accounts. It also notes that insurance premiums are projected to rise 5-8% in 2025, so shopping around for better rates might be necessary.