The middle class is a broad group, with the upper-middle class sitting at the top. But what does it take to join this elite tier? Let’s break it down.

What Defines Upper-Middle Class?
To be in the top 20% of the middle class, you’ll need to earn between $106,092 and $149,160 annually, — depending on where you live. For example, $104,000 might qualify you for affordable housing in San Francisco but place you firmly in the upper-middle class in a rural area.

Lifestyle also plays a key role. According to financial planner Sarah Maitre, upper-middle-class families can comfortably afford a suitable home, newer cars, childcare, and annual vacations—all while saving for retirement and college without stress.

Middle-Class Realities
In contrast, the middle class often faces tighter budgets. Maitre explains that while they can cover most expenses, they might skip annual vacations or opt for a Kia over a Tesla. Financial decisions are more deliberate, and saving requires careful planning.

5 Steps to Upgrade Your Financial Status

1. Boost Your Income
   Ask for a raise, switch jobs, or start a side hustle like freelancing or selling crafts online. While increasing income takes effort, it’s one of the most effective ways to climb the ladder.
2. Cut Discretionary Spending
   Review your expenses. Skip daily lattes, cancel unused subscriptions, and dine out less. Small changes can free up significant cash over time.
3. Be Patient with Homeownership
   Don’t rush into buying a home. Renting allows you to save and invest wisely, building a stronger financial foundation for the future.
4. Use Credit Wisely
   Avoid carrying credit card debt. Track your spending and ensure your income covers your bills. If you’re dipping into savings to pay off cards, it’s time to cut back.
5. Plan for Windfalls
   When extra cash comes your way—whether from a raise, gift, or savings—resist the urge to splurge. Instead, invest it in your future, like retirement or emergency funds.

The Long Game
Moving up to the upper-middle class isn’t about quick fixes. It’s about making consistent, smart financial choices. By increasing income, reducing expenses, and planning ahead, you can achieve a more secure and comfortable lifestyle by 2025.

While skipping that tempting purchase might feel disappointing now, your future self will thank you for building a brighter financial future.