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Most people are happy to live a middle class lifestyle. But what does middle class mean, anyway? Pew Research Center defines the middle class as having an income that is between two-thirds and twice the national median income.
During the third quarter of 2025, the average weekly earnings in the United States for full-time workers was $1,214, according to the Bureau of Labor Statistics (1). This puts the median annual wage at $63,128 assuming a 52-week work year.
According to this formula, if you earn less than $41,664, you are considered lower income. And if you earn more than $126,256, you’re upper class. With that in mind, here are some signs that you are no longer a member of the middle class but have started to climb the ladder.
In their 2025 How America Saves report, Vanguard states that by 2024, the average 401(k) participant contributed 7.7% of their salary into their account (2). If you are able to save a larger percentage of your income for retirement, then you may be earning enough to move beyond the middle class.
On an average middle class income, many workers struggle to fund a retirement plan to begin with, let alone save a higher percentage of their salary than the typical worker.
If you have a healthy retirement fund in place, you may consider diversifying your investments in the future with a gold IRA.
One method that many people use to invest in gold is a self-directed gold IRA.
A gold IRA allows you to invest in gold and other precious metals in physical forms while also providing the significant tax advantages of an IRA.
If you’re not sure where to start, you can check out some of Moneywise’s top picks for gold IRAs to compare your options for free. Keep in mind that gold is often best used as one part of a well-diversified portfolio.
If you’re new to the upper class — and therefore perhaps new to investing — you’ll want to make sure your retirement fund is on track. To help you spend less time researching and worrying about it, you may want to talk to a financial advisor.
Finding the right advisor is simple with Advisor.com. Their platform connects you with licensed financial professionals in your area who can provide personalized guidance.
A professional advisor can also help you determine how much you have left to invest before retirement and assess your comfort level with market fluctuations—two key factors in building the right mix of assets for your portfolio.
Through Advisor.com, you can schedule a free, no-obligation consultation to discuss your retirement goals and long-term financial plan.
If you earn a large amount of passive income in addition to wages paid by your employer, you may no longer be middle class.
Many high earners have reliable sources of income in addition to their wages, from rental properties to investment portfolios, and many of these pay regular dividends.
Smart investors look to real estate not only to diversify their holdings but also to provide them with regular income.
You can tap into this market by investing in vacation home shares or rental properties through Arrived.
Backed by world-class investors including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being the landlord of your own rental property.
To get started, simply browse their selection of verified properties, each chosen for their potential appreciation and income generation. Once you select a property, you can start investing with as little as $100, potentially earning quarterly dividends.
First National Realty Partners (FNRP) allows accredited investors to diversify their portfolio through grocery anchored commercial properties, without taking on the responsibilities of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands such as Whole Foods, Kroger and Walmart, which provide essential goods to their communities.
Thanks to Triple Net (NNN) rentals, accredited investors can invest in these properties without worrying about tenant costs reducing their potential returns.
Simply answer a few questions — including how much you’d like to invest — to start browsing their full list of available properties.
If you find yourself in the position of investing a larger than average proportion of your income, it’s time to consider diversifying your portfolio outside of traditional avenues for building wealth, such as the stock market and real estate.
One example that stands out: postwar and contemporary art, which outperformed the S&P 500 by 15% from 1995 to 2025 while showing almost zero correlation with traditional stocks.
Until recently, this world was off-limits. Now, with Masterworks, you can buy fractional shares in multi-million dollar works by icons like Banksy, Picasso and Basquiat. While art may be illiquid and typically requires long-term holding, it offers unique portfolio diversification.
Masterworks has sold 25 artworks so far, with annualized net returns of 14.6%, 17.6%, and 17.8%.*
Moneywise readers can get priority access to diversify with art: Skip the waiting list here
*Past performance is not indicative of future earnings. Investing involves risk. See important Regulation A disclosures at Masterworks.com/cd
Read more: Warren Buffett used 8 solid and repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)’
Most people don’t think about taxes until it’s time to file their annual return. But if you are actively taking steps — either on your own or with the help of an accountant — to reduce your tax burden, then your income may be high enough to move beyond the middle class.
These tax reduction strategies may include bulking up retirement plans, taking losses on investments to offset capital gains (and some ordinary income), and increasing charitable contributions.
Middle-income households often have to take on debt to cover their basic needs — especially given the impact of inflation in recent years. Case in point: Between Q3 2024 and Q3 2025, total US credit card balances increased from $1.06 trillion to $1.11 trillion, according to TransUnion (3).
But if the only debt you’re carrying is a mortgage and you can cover your expenses without having to charge part of your bills on a credit card, then you may be above the middle class.
We rely only on verified sources and credible reporting from third parties. For details, see our ethics and editorial guidelines.
US Bureau of Labor Statistics (1); Vanguard (2); TransUnion (3)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
