7 Promising Signs You Can Still Move From Middle to Upper Class

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Historically, people in the middle class have far fewer financial stresses than those with lesser means, but they typically have more money concerns than the upper class.

Middle-class households tend to have higher educations, retirement security and decent healthcare coverage, and they typically own their homes and cars.

But middle-class individuals still have their share of financial limitations. They might still owe money on mortgages or auto loans. Or they might need to take out some student loans to afford their children’s college education. Oftentimes, they also still need to budget for things like family vacations and other big-ticket items.

That said, the American class system is a spectrum and people in one class sometimes make the jump to the next. If you’re currently in the middle class, here are some signs that you can still move to the upper class.

You’ve Invested in Appreciating Assets

“I’ve seen the specific markers that indicate someone is on the path from middle to upper class,” said John Pace, a CPA at Pace & Associates. “One clear indicator is strategic investment in assets that appreciate over time.”

To illustrate this, Pace said, “I managed the finances of a Forbes 400 family where a significant portion of wealth growth stemmed from investments in commercial properties.”

These assets appreciated over time and provided steady rental income, all while diversifying the family’s portfolio.

“If you own rental property, you could be on your way to the upper class,” said Melanie Musson, a financial management expert with Clearsurance. “Rental property … is one of the best ways [of diversifying your income] because you earn rental income that pays for your investment and builds your equity.”

There are other types of appreciating assets as well, such as precious metals and some alternative investments. While this alone doesn’t signify that you’re transitioning to the upper class, it’s certainly an indicator.

Much of Your Income Is Passive

Middle-class households tend to earn money while working. Upper-class households can earn money even when they’re “off the clock.”

“The difference between the middle class and the upper class is that the middle class lives on their paycheck and the upper class lives on their investments,” Musson said. “If you’re already diversifying your income sources, you’re setting yourself up for financial success.”

As your passive income grows, you should start to see that you’re relying less on your regular income or salary to cover your living expenses. Once you get to that point, you’re well on your way to the upper class.

You’ve Got Multiple Income Sources

Passive income definitely counts, but having other income sources to your name is another promising sign that you’re moving up in the class system.

“If you’re starting to earn a significant portion of your income passively, you’re moving in the right direction,” said Rhett Stubbendeck, founder and finance expert at Leverage. “This could be through dividends, rental income or other investments.”

There are many ways to diversify your income sources. For example, you could create a side business that brings in monthly revenue. Or you could be invested in stocks, bonds or other assets with growth potential.

You Don’t Have Any Debts — or You Have Control Over the Ones You Have

If you don’t have any debts at all, not even a mortgage, that’s a promising sign, too. But even if you do have some debts, you still could be on your way to the upper class. It just depends on how much control you have over those debts.

“Those on their way to the upper class typically manage their debts well, paying them off strategically and avoiding high-interest liabilities,” Stubbendeck said.

For example, you could have a low-interest loan for your rental properties. Those loans should be for investment purposes, however. They should not be used to accumulate consumer debt — as is the case with financing a home for personal use or a personal vehicle.

You Regularly Engage in Networking Opportunities

Do you find yourself actively looking for new networking opportunities to grow your wealth? If so, that’s also a promising sign.

“I’ve seen clients who regularly network and look for new opportunities often land higher-paying jobs or business deals,” Stubbendeck said.

This could mean attending industry events, participating in professional groups or joining related affiliate organizations.

You Spend Much Less Than You Earn

This one almost goes without saying; but, if you earn significantly more than you spend, that’s a good sign. Assess your financial situation and ask yourself whether you’re struggling to make ends meet or you’ve got cash to spare. If it’s the latter, you should be using that extra money to continually build wealth and move up a class.

“If you can manage to live on less than you earn, you can use the extra money to work for you and earn even more income,” Musson said.

You Use Tax-Advantaged Accounts and Strategies

According to Pace, you could be approaching the upper class if you not only engage in effective tax planning but also use tax-advantaged accounts to make your money go even further. This could be by way of 401(k)s and IRAs, or any other account that reduces your tax liability and offers substantial long-term benefits. Effective tax planning, he added, often leads to significant wealth accumulation over time.

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