7 Strategic Ways To Go From Low Income to the Middle Class
Written by
Cindy Lamothe
Edited by
Joe Evans
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If you’ve been working hard at the same job, struggling to pay your monthly bills and wondering when you’ll finally catch a break — don’t despair. According to experts, it’s still possible to go from having a low income to the middle class with the right strategies.
“Breaking into the middle class from a lower-income background requires a strategic and disciplined approach,” said Zachary Jarvinen, vice president at Exact Payments.
He said one effective strategy is focusing on building invaluable and in-demand skills that can lead to better employment opportunities. “It’s about investing time and resources in education and vocational training and upskilling the skills you currently have.”
That said, he added that managing your debt is just as important as trying to upskill yourself. “Avoid high-interest debt traps, prioritize paying down existing debt, and use your credit responsibly to keep a clean and positive credit history.”
Below are more expert-recommended strategies to help you move up the class ladder and secure a greater financial future.
Know Your Worth
“The most important thing is to aim high, to believe you are worth more, and that your work and your time is worth more than what you are currently getting,” said Ashley Vincent, owner of Home Investors.
“You need that mindset so you’ll never permanently settle for anything too low,” she said. “You will need to be able to prove your worth too, so it will involve a lot of dedication and focus.”
Don’t Be Afraid To Try New Jobs
“Take the jobs that you can get — in the meantime — even if they are not exactly what you wanted,” said Vincent. “If you cannot get a full-time position, try doing two part-time jobs. Do not be afraid to try new jobs — see it as more training. Anything you do will help you in the future.”
If it doesn’t directly lead to other opportunities, she pointed out that you’ll still learn a lot (even what not to do) and that any work experience is still valuable and important to future employers.
“Do not wait around for the perfect job, doing nothing until you get it,” she said. “You may land that perfect job soon enough, or you may discover new interests and your perfect job may change.”
Overall, she advised patience. “And have respect for the experience you are gaining through whatever jobs you are doing in the meantime,” she concluded.
Keep Building Your Skill Set
If you don’t have money to further your education, Mikayla Reynolds, owner of Cash Offers, recommended taking on some short courses after hours if need be.
“Extra diplomas or certificates look good on a CV — it shows that you are dedicated and serious about getting a proper job, but most importantly, the knowledge you’ll gain will always come in handy at some point.”
Keep Submitting Job Applications
Reynolds also suggested searching the web to get tips on how to make the most of your CV and application letter. “Make sure you follow up on these. Write down the names of people you’ve spoken to or need to speak to. But also let as many friends and acquaintances as possible know that you are looking for a better job.”
And don’t be afraid to take action. She recommended making an appointment, introducing yourself and showing them that you are really interested in the job.
Tackle Your Debt
“If you are low-income or living paycheck to paycheck, it can be difficult to break through that cycle to a more positive financial status,” said Jake Hill, finance expert and CEO of DebtHammer.
However, he stressed that using the right strategies can help.
“I recommend you start by tackling any outstanding debt, isolating one debt at a time for slightly larger monthly payments than the others,” he said. “Chipping away at debt is one of the best ways to have more income left over at the end of the month, which will help you work toward other financial goals. For example, it’s crucial to set a monthly savings goal — even a small amount — to help you reach middle-class status.”
Adopt a ‘Savings and Investing’ Mindset
Jarvinen noted that it’s equally important to adopt a habit of saving by earmarking a percentage of income for emergencies and investing in low-cost index funds, growing wealth over time.
“Always keep in mind that it’s not just how much you make but how much you keep and how that accumulates that can make all the difference,” he said.
Seek Out Passive Income Streams
Seeking ways to generate passive income streams can also be a big advantage for those who want to break into the middle class, said Jarvinen. This may include low-capital investment opportunities, like peer-to-peer lending or revenue from creating digital products if you have a particular skill set like writing or design.
“Such countermeasures against financial instability can gradually pull you one step towards the middle class,” he said.
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