Have You Reached Upper Class This Year? If Not, Try These 3 Moves Next
Written by
Cindy Lamothe
Edited by
Rebekah Evans
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
So, you’ve been working hard, keeping an eye on your budget, maybe even sneaking in a few smart investments — but have you crossed that elusive “upper class” line this year?
If not, don’t sweat it. Building wealth isn’t a one-and-done sprint; it’s more like a marathon with pit stops, detours and the occasional pothole.
CNBC reported that while earning more than $110,000 in household income doesn’t make you rich — in most states, it means you’re upper-middle class.
The good news? You can take the practical, bite-sized steps below right now to grow your income, strengthen your savings and move closer to that upper-tier lifestyle.
Start Thinking in Terms of Net Worth, Not Just Income
Assets rather than earnings are one of the characteristics of the upper class, according to Bhavin Swadas, CEO of Squeal My Deal.
In other words: making six figures does not count much when you are spending equivalent money.
He said the initial change in mindset that he has adopted is to keep track of net worth regularly — knowing not only how much he earns, but also how much he keeps.
“This covers the investments, cash reserve, home equity, plus the business interests, with exclusion of all liabilities,” Swadas added.
His advice? On the path to the upper ranks: begin adding assets, contribute to a Roth IRA or brokerage account, grow equity through owning a home and put together income-generating side businesses.
“Asset accumulation, not lifestyle inflation, is the key,” he said.
Automate Wealth-Building and Remove Emotion from Saving
Swadas explained that rich people eliminate the stumbling blocks to saving and investing. They automate paycheck deposits into various buckets — retirement funds, emergency savings, investment accounts and insurance.
“Unless you are already in the upper class, begin by automating at least 15% to 20% of your take-home income on your various vehicles, even though it may be an uncomfortable thing to do,” Swadas said.
He explained that automation removes willpower. Six months ago, what seems to strain today will be normal.
“The most effective ones do not save what remains, but they save first,” he added.
Invest With a Long-Term Strategy, Not for Quick Wins
The upper world knows that compounding is not something that is filled with noise but something that rewards patience.
They do not want a quick win in the form of meme stocks or the hottest crypto trend, Swadas said. They prefer index funds, dividend growth portfolios, real estate and other investments that have long-term yield as an alternative.
“In case you are not yet one of the upper classes, then you need to question the stability or the short-run speculation in your portfolio,” Swadas explained
To that effect — get started with regular investing as soon as possible — even modest regular savings into an S&P 500 index fund would be amazing over 10 or more years.
“It is not only important to invest but also to stay with a strategy and to tune out the noise in the market,” he added.
More From GOBankingRates
