9 Key Signs You’ve Almost Made It to the Middle Class

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There are a number of telltale signs you’re entering the middle class. For one, having a steady job and income is a key indicator. Another one is a comfortable lifestyle like a nice home, having access to healthcare and the ability to save and invest. This stability shows a fundamental shift from struggling to make ends meet to having a degree of financial security.

“Imagine you’re climbing a ladder, and each rung represents a step toward achieving middle-class status,” said Linda Schroder, real estate investor and owner of Cash for Houses. “As you ascend, you’ll notice certain milestones that indicate you’re getting closer to your goal.”

She explains that middle-class individuals typically have some disposable income, like a little breathing room between the rungs of the ladder. “This allows them to indulge in nonessential expenses, such as vacations, dining out or entertainment, without feeling a financial strain.”

Here are more key signs that you’re moving up financially to the middle class.

Stable Income Growth

A steady job with a reliable income is often seen as a key element of being in the middle class. This can provide a sense of security and allow individuals to plan for their financial future. Middle-class jobs also tend to come with benefits such as health insurance and paid time off. 

A significant sign of nearing the middle class, according to ​​Ben Gold, founder of Recommended Home Buyers, is consistent and stable growth in income. This may include regular salary increases, additional income streams or successful investment returns. 

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“I recommend individuals focus on enhancing their skills, exploring side hustles and making informed investment decisions,” he advised.

Schroder agrees. “Diversifying your income sources is like adding more ladders to your climbing journey,” she explained. 

Aside from side hustles, Schroder suggests looking into part-time work or rental income opportunities to supplement your primary income and create a more stable financial foundation. 

Financial Security Milestones

According to Gold, achieving financial security markers, such as an emergency fund, retirement savings and debt reduction, signifies a move toward the middle class. “I advise adopting a disciplined budget, prioritizing savings and strategically managing debt to attain these milestones,” he said.

Schroder equally notes that milestones like owning assets, such as a home or car, is like building a strong foundation beneath your feet. “These assets represent accumulated wealth and provide a sense of financial security.”

Access To Quality Education

While a college degree is by no means a guarantee of a spot in the middle class, it can certainly open up more opportunities for higher-paying jobs and career growth. 

Experts agree that educational opportunities contribute to upward mobility. Access to quality education, whether through advanced degrees, vocational training or skill development, often correlates with middle-class advancement. Those in the middle class are more likely to have completed some form of post-secondary education, whether it be a trade school, community college or four-year university. 

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“I suggest individuals invest in continuous education to enhance their marketability and earning potential,” said Gold.

He notes that navigating the transition to the middle class requires diligence, strategic planning and financial literacy. 

Quality Healthcare

Having healthcare coverage isn’t only important for your well-being, but it can also be an indicator of reaching the middle class. Those with stable jobs often have access to employer-sponsored healthcare plans, while those without may qualify for government assistance programs like Medicaid or subsidized health insurance under the Affordable Care Act. 

Access to quality healthcare is like having a safety net under the ladder, said Schroder. “It ensures you can receive necessary medical care without worrying about excessive financial burdens,” she continued. 

She says middle-class individuals are also able to save and invest for their health, like putting money aside to climb even higher on the ladder. “This indicates financial planning and a focus on long-term goals.”

Tax Return 

Most of us dread tax season, but for those in the middle class, it can be a sign of progress. Filing taxes means having a steady income and enough assets to invest in retirement savings plans like 401(k)s or IRAs. It also means having enough expenses to claim deductions and credits, which can reduce your taxable income. 

Homeownership or Comfortable Rental

Owning a home is often seen as a hallmark of the middle class. It shows financial stability and the ability to invest in property. Homeowners also have the potential for building equity, which can provide some financial security in the long run. 

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Similarly, renting a comfortable and secure residence can also be a key sign of financial progress. Harrison Jordan, J.D., founder and managing lawyer at Substance Law, notes that middle-class individuals typically have access to safe and decent housing that meets their basic requirements. 

“This can range from renting a comfortable apartment to owning a modest home,” he said. 

Savings and Investments 

Having money set aside for emergencies and future expenses is crucial for financial stability. Experts agree that middle-class individuals tend to have enough disposable income to save and invest in things like retirement accounts, stocks and real estate. 

Networking and Mentoring

One clear sign you’ve almost made it to the middle class is that you network with professionals in your field and seek out mentors who can guide you and provide valuable insights and opportunities. You understand that building these connections and seeking advice from those who have successfully navigated the middle class can prove beneficial. 

Financial Planning

Those approaching the middle class are smart about managing their finances. They develop a budget and practice good money management habits, tracking expenses, saving where possible and avoiding excessive debt. They also seek financial guidance if needed, as it helps them make informed decisions regarding investments, savings and managing credit.

Schroder points out that reaching middle-class status is like the final stretch of your climb. “It requires determination, smart planning and a willingness to put in the effort.”

Part of this, she adds, involves budgeting and financial planning which are like putting safety railings on your ladder. 

“Create a realistic budget, avoid unnecessary debt, prioritize saving and investing and always have a financial plan in place.”

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