The middle class is a very big group. At the top is the upper-middle class, and determining if you fit into this category can be confusing.
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But how much money do you need to make to be considered upper-middle class, especially in 2025? GOBankingRates broke down the numbers and what you need to do to reach that status in the new year.
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The Minimum Salary To Be Upper-Middle Class
To be part of the top 20% of the middle class, you need to earn $106,092 and $149,160, — depending on your geographic location — according to a recent study by GOBankingRates.
“For instance, someone qualifying for the Affordable Housing Program in San Francisco would need to make $104,000 or less,” said Sarah Maitre, chartered financial analyst (CFA), financial planner and founder at Camriel Advisors. “However, that level of income would put someone in a rural community a few hours from San Francisco in the upper middle class.”
While a set salary can be hard to pinpoint for the upper-middle class, she said certain lifestyle factors can be telling.
“With my clients, I define upper-middle class as being able to afford a home that is comfortable for the size of your family, cars that are less than five years old — for those who are able to drive — childcare for all of your children — or for one spouse not to work — and ability to take at least one vacation with your family on an annual basis,” she said.
“All of this can be done without worrying how it will impact your ability to send your children to college, save for retirement, etc.”
When it comes to the true middle class, she said money is typically a bit tighter.
“I define middle class as being able to afford most of these things — perhaps not the vacation every year — but with some stress to make ends meet,” she said. “You’re not living paycheck to paycheck, but you are more cognizant of how you spend money and are likely making the choice of a Kia instead of a Tesla.”
If you’re currently living a solidly middle-class lifestyle but want to move up the income ladder, there’s potential.
“Shifting from the middle class to the upper middle class is definitely possible, and there are a number of ways to do it,” she said. “The most important thing to do is analyze your family’s cash flows and see if you can either adjust the money coming in (income), or the money going out (spending),” she said.
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Increase Your Household Income
“Income adjustments are typically harder to do, but more impactful on mobility,” Maitre said. “This would entail asking for a raise at work, switching jobs, getting a second job or maybe starting a side hustle, such as an Etsy shop or DoorDashing.”
Of course, putting in more hours does require a trade-off.
“While it is possible to increase income, many of the options require an increase in time spent [too], which may not be feasible for everyone,” she said.
Find Ways To Cut Back
Analyzing your spending habits is another way to assist in your ascent to the upper-middle class, Maitre said. She said to ask yourself which areas of discretionary spending you can cut down on to spend less.
“While your daily $6 latte is a good place to start, there are likely other areas that will have even more of an impact, such as subscription services and regularly dining out,” she said.
Take Your Time Saving for a Home
Shifting into the upper-middle class isn’t a sprint. If you’re rushing to buy a home you may not be fully financially prepared to own, this can actually hinder your progress.
“Be patient and embrace renting so you don’t over-spend on a home,” said Brian Blakeman, founder and financial adviser at Onward Financial Advising LLC. “Build up cash and non-real estate investments, such as retirement accounts.”
Think Twice Before Using Credit
There’s nothing wrong with using with a credit card, as long as you’re paying your bill in full each month. If you’re not, you may be hindering progress toward your goal of being upper-middle class.
“Map out your income and cash flow for at least six weeks to ensure your income is supporting your credit card spending,” Blakeman said. “If you are needing to dip into savings to pay off credit cards, then reduce spending.”
Be Mindful With Extra Cash
If you’re gifted money, get a raise or score a break on an expense, mindlessly spending it might be tempting, but it won’t help your finances.
“Have a plan in place for extra cash when it comes your way,” Blakeman said. “By thoughtfully pre-planning how to use it, you can ensure your money works toward building your financial future and helping you stay ahead.”
Not doing something fun with the money might feel disappointing in the moment, but in the long-term, you won’t regret making the smart choice.
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This article originally appeared on GOBankingRates.com: Here’s the Minimum Salary Required To Be Considered Upper-Middle Class in 2025
