Understanding whether you are eligible for a specific designation can be puzzling.
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You can begin this week.
So, what does it take to be considered upper-middle class in your country? The amount of annual income where an individual starts to officially fall under this category depends heavily on countries’ unique economic conditions.
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“However, income at that level would rank someone in a rural area several hours southeast of San Francisco in the upper middle class.”
She notes that it can be challenging to determine an exact income for the upper-middle class, but certain lifestyle factors can be indicative.
For my clients, I define the upper-middle class as being able to afford a house that meets your family’s space needs, a car that’s less than five years old for those who drive, and having the means to pay for all your kids’ childcare or if one partner doesn’t have to work. They also should be able to take at least one family vacation every year.
Everything can be managed without affecting your prospects for financing your children’s college education, saving for retirement, etc.
When it comes to the actual middle class, she said money is usually a bit tighter.
In my opinion, being part of the middle class means having enough money to afford many of the basics without being extremely stressed about paying the bills. It’s not always easy to make ends meet, but you’re not living on the edge of financial disaster. You might have to choose a more affordable option, like buying a Kia, instead of something more luxurious, like a Tesla.
If you’re currently living a pretty average middle-class lifestyle but want to advance up the income scale, you have options.
“Succumbing from the middle class to the upper-middle class is definitively achievable, and there are several ways to pull it off,” she said. “What’s primarily important to do is scrutinize your family’s cash flows and check if you can either modify the money coming flowing in (income), or the money flowing out (spending),” she said.
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Increase Your Household Income
Changes to how much money a person earns, like asking for a raise, switching jobs, getting a second job, or starting something on the side, can be challenging, but can have a bigger impact on someone’s ability to move through life.
Obviously, devoting more hours to the task involves a trade-off.
“While it is possible to increase income, many of the options require an increase in time spent, which may not be feasible for everyone,” she said.
Reduce Expenses
Maitre suggested analyzing your spending habits to aid in your upward financial mobility. He recommended to consider which areas of discretionary spending you can reduce to spend less.
“Your daily $6 latte is a good place to start reducing waste, but other expenses like subscription services and frequent dining out might actually make a bigger difference,” she said.
Planning Ahead for a House Purchase
Getting into the upper-middle class is not a short-term goal. If you’re in a hurry to buy a house without fully preparing your finances, it could ultimately hold you back.
Financial investments, such as retirement accounts.
“Think Before You Use Credit”
There’s nothing wrong with using a credit card, as long as you’re paying your bill in full each month. If you’re not, it may hold you back from achieving your goal of being upper-middle class.
Plan out your income and cash flow for at least six weeks to make sure your income can cover all your credit card bills,” Blakeman said. “If you have to use savings to pay off credit cards, then cut back on your spending.
Handle Bonus Funds with Care
If you receive some extra money, get a raise, or find a discount on a bill, the temptation to spend it carelessly is strong, but it won’t improve your financial situation.
It’s a good idea to have a plan for handling any extra money that comes your way,” Blakeman said. “If you think carefully about how to use the additional funds, you can make sure it’s helping you build a strong financial future and stay ahead of the game.
Not doing something fun with the money might feel disappointing at the time, but in the end, you’ll be glad you made the wise choice.
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Here’s the Minimum Salary Required to be Considered Upper-Middle Class in 2025
