Here’s How To Know If You’re Actually Middle Class, According to Humphrey Yang

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Are you in the middle class? In recent years, the lines between classes have gotten blurred, especially with inflation and other economic factors eroding your money.

There are different metrics and benchmarks for middle class. Financial influencer Humphrey Yang believes $150,000 is considered middle class in 2025, but offers other criteria to help tell where you fall. 

Income Test

According to the Pew Research Center, a middle-class household is one with an income between two thirds and double the median household income. In 2024, the median household income was $106,100, which makes the middle class between $70,000 and $212,000. 

Home Ownership 

One of the main components associated with the middle class is homeownership. Yang cites the fact that as of Q1 2025, the median home price is $416,900. Using this median home price, the monthly mortgage payment equates to $2,753. With the 28% rule stating that your mortgage payment should be less than 28% of your gross monthly income, a middle-class family should be making $117,852 per year to afford an average home. 

Geographic Disparity 

Yang does give one caveat: geographic disparity. High cost of living areas can erode what a middle-class lifestyle feels like. For example, Hawaii has a high cost of living, which means a $150,000 salary won’t go as far compared to somewhere in the Midwest. When it comes to determining if you are middle class, it’s important to evaluate where you live geographically. 

How to Stretch Your Income 

Regardless of where you fall class-wise, Yang gives actionable tools you can use to make your income go further. For one, he suggests living within your means. When it comes to your purchases, you need to make sensible choices and constantly evaluate areas where your spending has increased. 

One example would be auto insurance. With the price of auto insurance doubling in many areas over the past few years, shopping around for a better rate and provider can help unlock more funds in your budget.

A similar strategy is to call about recurring bills. Every quarter or six months, you should call around to make sure you’re getting the best possible prices. Think cable services or even streaming services. 

Finally, Yang suggests investing. The way people actually become rich is by generating income that they don’t rely on. For example, you might rely on your paycheck to pay your mortgage. Investment income can be used to support other goals, like retirement. If you are interested in investing, Yang says to start with a Roth IRA to enjoy tax-free growth and withdrawals during retirement. 

The Bottom Line

Are you considered middle class? Even if you fall within the income and monthly mortgage test, it can feel like you are struggling to make ends meet. If this situation describes you, it’s important to look at your geographic location to see how you compare. Otherwise, consider implementing some of Yang’s tips, like spending within your means, checking your auto insurance, lowering your service fees, and investing regularly. 

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