Advertiser Disclosure

5 Ways To Become Financially Secure on a Middle-Class Salary

May 16, 2025

5 min Read

Written by Angela Mae

Edited by Angela Corry

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

Defining financial class isn’t just based on the income you make. If it was then, by the Pew Research Center’s definition of “middle class,” you’d be firmly in that category if you earn between two-thirds and twice the U.S. median household income (which is $80,610). That means you’d be considered middle class if you earn $53,740 to $161,220 a year.

But income is only part of the bigger picture. Here are some of the top ways to become financially secure on a middle-class salary in the U.S.

Consider the Bigger Picture

Your salary is a good starting point to determine your financial well-being, but you need to consider the bigger picture. Things like household size, where you live and your other financial obligations also matter.

“A big misconception is that a six-figure salary automatically means financial security,” said Melissa Murphy Pavone, Founder at Mindful Financial Partners. “I work with clients making $150K+ who feel like they’re barely treading water, especially in high-cost areas like New York.”

Imagine a family of four living on $161,220 in New York City. The average home costs about $796,000 there. Tack on other common expenses like childcare, credit cards or other debts, groceries, healthcare and transportation, and you’re looking at a potentially tight budget.

Now, imagine someone with no kids or debts living in Columbus, Ohio where homes cost an average of $253,000. Assuming they have solid budgeting skills and pay attention to their spending and savings, they could be doing quite well for themselves on that salary.

Today's Top Offers

Review Your Spending Plan Percentages

High earners live paycheck-to-paycheck or struggle with debt all the time.

Take a California couple who recently called in to the Dave Ramsey Show as an example. They earn about $300,000 a year and owe $119,000 in debt (not including their mortgage). They also spend roughly $5,000 a month on their housing payment and are struggling to lower their expenses and pay off what they owe.

No matter how much you’re earning, one of the best ways to become financially secure is to make a spending plan or budget. You can keep things simple. For instance, you could follow the 50-30-20 budgeting rule wherein your income goes into the following categories:

50% for needs
30% for wants
20% for savings or debt

Or you can break down your spending into larger categories like:

Mortgage or rent
Utilities
Transportation
Gas
Clothing
Food
Insurance / healthcare
Debts
Saving and investing
Miscellaneous

Whatever you do, find a budget that works for you. If you find yourself spending too much in certain categories, try to back off a little and put that money toward more important things.

Pay Off your Credit Cards

According to Experian, the average person carries $6,730 in credit card debt. That might not seem like much if you’re earning twice the median income, have no other debt obligations and are keeping other costs reasonably low.

But if you have that much credit card debt, chances are you’ve got a spending problem — or you haven’t prioritized paying off your balances. And considering how high credit card interest rates are (nearly 23% on average), that just means you’re spending more than you ought.

Today's Top Offers

If you want to become more financially secure, start by tackling those debts. You can always use the debt snowball method, which focuses on paying off the smallest balance first before moving on to the next-smallest balance and so on.

Build an Emergency Fund

Many financial experts suggest having at least three to six months’ worth of expenses in an emergency fund. If you’re self-employed or have kids, you might want to shoot for a higher amount.

A lot of middle-class households don’t have an emergency fund at all. What this means is that even the smallest financial hiccup — like a surprise medical bill — could be detrimental to their monthly budget. It could even mean taking on a new debt to cover that bill.

“Middle class isn’t just about income, it’s about lifestyle sustainability. Can you cover your needs, enjoy some wants, save for the future, and absorb a financial curveball without falling apart? That’s the heart of middle class,” said Pavone.

Secure your household financially. Build an emergency fund.

Check Your Net Worth

Your net worth is essentially the value of all your assets minus all your liabilities (or debts).

If you owe $200,000 on a house valued at $500,000, then your net worth is $300,000 (assuming no other debts). If you also have $100,000 in retirement savings or investments, add that to your total net worth.

Knowing your net worth is key to understanding how financially secure you are. It gives you a more accurate picture of your overall financial health than income alone.

Today's Top Offers

But middle-class households often have a negative net worth — they just don’t always realize it.

“In reality, many middle-class families are quietly carrying debt, juggling rising expenses, and struggling to keep up appearances,” said Pavone. “It is more important to measure how much you save versus how much you make.”

More From GOBankingRates

Sources: