The New Lower, Middle, and Upper Class

How would you define socio-economic classes? Do you rate it by income, assets, ethnicity, political stance, how you think, or even act?   

No matter how you define Lower, Middle, and Upper class, it's important to know where you are and what is appropriate for your particular situation. We've got a serious problem in North America. Many of us, over the last several decades have distorted our definition of what these classes mean and the actions we take. We have moved the indicator line (falsely) so many people who are in one class act like (and spend like) we are in the class above us. You can see why this would be a problem.   

If we are in the majority and are middle class, but are spending money like we are in the upper class, we are susceptible to living on more than we make, going into debt, and setting ourselves up for a really hard life with not much to show for it later in life other than a pile of bills and stress.   

Instead, we need to know our situation, own it, and then act like it. It's okay wherever you are and we need to do smart things to help improve our situation, but we can't act like we are something we aren't and think there isn't a price to pay for it down the road.