5 Strategies the Middle Class Should Use To Join the Upper Middle Class in 2025
Written by
Cindy Lamothe
Edited by
Amber Barkley
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Ever wondered what it takes to move from the middle class to the upper middle class? This might be the perfect year to make that shift.
It’s all about smart choices, timing and a little extra hustle. Whether you’re looking to boost your income, invest smarter, or take your career to the next level, having the right strategies can make a world of difference.
Here are some tips to help you build a stronger financial future.
Keep Track of Your Spending
The number one mistake Sarah Maitre, CFA and founder of Camriel Advisors, sees is people not keeping track of spending.
“It is really difficult to save money when you do not have an idea of how much money is coming in and how much money is going out,” she said.
By utilizing a budgeting app, she explained, you can better understand how much you’re spending on discretionary items, such as a Netflix subscription, versus non-discretionary items, like toothpaste and groceries.
Once you understand your spending, it’s easier to trim spending in areas that aren’t necessities and don’t greatly improve your quality of life.
Build Up a Solid Emergency Fund
Another common mistake Maitre sees is spending on large purchases before saving up an adequate emergency fund. If an emergency arises and you don’t have the cash to cover it, you could find your journey toward the upper middle class derailed as you take on debt or sell investments to cover the cost.
For most people, an appropriate emergency fund would cover fixed and variable expenses for the next three to six months. The job market can be volatile, and it’s important to have reserves in the unfortunate event that your job, or your spouse’s job, is eliminated.
“Given the fragile state of the economy, I would err on the side of 6 plus months,” Maitre added.
Save Ahead Enough for Large Purchases
Another additional area of cash flow mismanagement is not saving far enough ahead for large purchases. The sooner you start saving, Maitre said, the more time your money will have to grow.
If you know you want to purchase a home, you’ll need plenty of time to save up for a down payment — this is not something you can start saving for one or even two years before you intend to purchase.
“Your goals can become derailed quickly if you do not plan ahead,” Maitre explained.
Taking on more debt than you need to means you’ll be paying far more in interest, so having a large down payment for a house or any other significant purchase can save you a lot in the long term. That’s money you can invest to increase your net worth.
Seek an Advanced Degree
“A lot of times, people don’t want to get started with an advanced degree, because they think it will take a long time,” said Melanie Musson, finance expert with Insurance Providers.
And it’s true — you may start your advanced degree this year, but you likely won’t graduate in 2025 if you haven’t started yet.
But if you start working on your degree, Musson said even if it takes you several years, you’ll probably be surprised by how quickly the time passed when you look back at it after you’ve finished.
Additionally, she noted that getting a master’s degree or higher can open up your career to job opportunities where you can earn a higher salary. In fact, according to Indeed, individuals with a master’s degree earn an average of 16% more than those with only a bachelor’s degree.
“Even just working on a program can open doors,” Musson added.
Many positions require a master’s degree, but will accept applicants who are currently working on a degree.
Get Serious About Getting a Raise
If you believe you’ve earned a raise, Musson recommended asking for one. A higher salary can go a long way toward increasing your net worth — and helping you climb from middle class to upper middle class — provided you don’t let lifestyle inflation sneak in.
Also, don’t be afraid to play the field and look into employment opportunities elsewhere. Even if you don’t want to switch companies, if you’re given a job offer, you may be able to use that to leverage a salary increase at your current job.
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