Middle class people are defined as people who have monthly mortgage payments, car loans, credit card debts, and other debts to pay. A large percentage of their monthly income goes to pay these debts. On the surface, they look much better than the poor. But in reality, they are worse off financially than the poor because the poor can’t qualify for huge amount of loans from the banks, hence, the poor don’t have the stress of having to pay so much debts every month just stay afloat. What happens when a middle class person lose his job or had an accident and can’t work? He’ll eventually lose his flat, car, and the ability to continue charging on his credit cards. That’s the stress of the middle class lifestyle.
Poor people are defined as people who have low income and can’t qualify for bank loans. Hence, they don’t have mortgages, car loans, and credit card debts to pay. Most of their income goes directly to pay for everyday expenses just to survive.
Rich people are defined as people who owned their homes and cars free and clear outright. They pay off their credit card bills in full and on time every month. They have businesses or investment portfolios that can provide them with a monthly income to sustain their lifestyle regardless of whether they choose to work or not. They are the lenders and not the borrowers.
I hope the above definitions let you realize who are the middle class, poor, and rich in our society.