How I Live an Upper-Middle-Class Lifestyle on a Middle-Class Income
Written by
G. Brian Davis
Edited by
Brendan McGinley
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For 10 years, my wife and daughter and I lived overseas. We lived an upper-middle class lifestyle on my wife’s teacher salary of around $50,000, while saving and investing every penny of my income.
We recently moved back to the U.S. to be closer to our aging parents and did plenty of hand-wringing about how much more we’d spend living in the States. While we do spend more than we did overseas, we’ve managed to keep an outlandishly high savings rate — while still living an upper-middle-class lifestyle on a middle-class budget.
Negotiate Rent Aggressively
Many renters assume that landlords just want the maximum rent possible. Sure, more rent is nice, but as a former landlord myself, I know many landlords have higher priorities than just more rent. They want reliable, low-maintenance renters who will treat their home with kid gloves and pay the rent on time with no exceptions. When we moved back to Baltimore, I started contacting every landlord whose house we liked.
“My wife and I both have credit scores in the mid-700s,” we told them. “We have no pets and we’re willing to prepay six months’ rent up front if you’ll accept this rent amount.” We managed to knock nearly 10% off our rent that way.
Pay Off Unsecured Debts
Money you blow on interest is money you can’t spend living well.
“It can take a few years of living like you’re poor and eliminating debt so that you can live like you’re earning more than you are,” said Melanie Musson, finance expert with Quote.com.
Never Buy Soft Drinks Out
Restaurants often lose money on food dishes but earn their money back on drink markups. A fountain soda costs just a few cents per pour, but even fast food joints and convenience stores charge several dollars for it.
I bring a refillable water bottle with me everywhere and sometimes a coffee or tea thermos. Elliot Schwartz, CEO of credit-building company Becca’s, puts this point well: “The best way to live like the upper-middle class on a middle-class income is to save money on the small things so that you can afford the big things.”
Embrace Cooking as a Hobby
Like us, our best friends love high-end wines and food. We could go out to dinner and drop $600 a couple — and occasionally we do — but we’d just as soon make a seven-course meal at one of our houses.
We can do that because we know how to cook. And we know how to cook because we invested the time to learn.
Most days I pack leftovers from last night’s dinner for my lunch at work. I could go drop $10-25 for each lunch, but I can eat just as well by bringing leftovers.
Organize BYOB Events
Often friends just default to planning get-togethers at restaurants, bars and other businesses, where they’ll pay full markup for everything.
Instead, plan meetups where you can bring your own food and drinks. Picnics, cookouts, bonfires, pot lucks: get creative.
Shop Sales & Secondhand
My wife and I got spoiled living in South America, where beef is cheap. Back in the States, I simply keep an eye out for good cuts of beef on sale for 50% off at the grocery store, and pop them in the freezer when I get home. We still get to eat ribeyes and filet mignon at South American prices.
The same goes for clothes. I recently picked up an $80 Vineyard Vines shirt for $9 at the thrift store, in perfect condition. I wore it to my friend’s country club later that week, where I was dressed more fashionably than many members.
Buy Used Cars
“A 5-year-old luxury car often costs the same or less than a new non-luxury car,” observes Musson. “Most people don’t have a clue what model year a car is. Once the vehicle is over 10-15 years old, it starts to look like an older car, but a 5-year-old car that’s well-kept looks new to most people.”
Share One Car
My wife and I lived without a car entirely for six years in South America. We got in the habit of walking, biking, scootering and Ubering everywhere.
We moved into a walkable downtown neighborhood and bought one (used) car to share. In the four months since we’ve been home, I can think of only two or three times when we even had to coordinate plans around sharing it.
Travel Flexibly
In 2016, my wife and I tried Skyscanner’s “Everywhere” travel search for the first time. We saw cheap direct flights to Bulgaria, and raised our eyebrows. “What’s in Bulgaria?”
After five minutes of online research, we were sold. We booked it and promptly fell in love with Eastern Europe, where we’ve spent many months since.
Likewise, traveling in the shoulder season can save you 40%-70% on accommodations. Stay flexible and open-minded, and you can afford more travel and adventures.
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