Here’s the Minimum Net Worth To Be Considered Upper Class in Your 20s
Written by
J. Arky
Edited by
Amen Oyiboke
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
Anyone who has lived through their 20s can attest that it is a time of change, growth, and learning, while also noting that you are likely not to have a lot of money as you start your career as an adult. However, not everyone needs to scrimp and save through that decade of life — in fact, 20-somethings can be considered upper class if they meet the minimum baseline for a certain net worth.
Read More: Here’s the Minimum Net Worth To Be Considered Upper Class in Your 50s
GOBankingRates got in touch with Dean Lyulkin, the CEO of Cardiff, to do the math on the minimum net worth to be considered upper class in your 20s, and here is the breakdown.
Employment
According to Lyulkin, if you’re in your 20s working in big law, big tech sales or engineering, or high finance like investment banking and private equity, you’re probably making between $250,000 and $500,000 a year all-in, though he highlighted that income alone means very little without assets.
“The most disciplined path to becoming upper class at that age is saving 40-50% of your after-tax income,” Lyulkin said. “On a $300,000 salary in New York or San Francisco, that could mean putting away $100,000 to $150,000 a year and even more if you save your bonus.”
Lyulkin added that if someone in their 20s does “… that for three or four years, you’re sitting on $500,000 [or more] in liquid savings and retirement accounts. With compounding, it’s very likely you’ll be a millionaire by age 30. That clearly puts you in the top 5% [to] 10% of your peers.”
Discover Next: Here’s the Line Between Middle Class and Upper-Middle Class in Every State
Lifestyle
Lyulkin admitted that saving half your income in your 20s is aspirational, but it comes with trade-offs.
“Even on a $300,000 salary in a big city, rent, travel, and social spending can eat into your paycheck quickly,” Lyulkin said, noting that choosing to live on half of what you bring home means dialing back lifestyle upgrades — maybe living with roommates a little longer, skipping the luxury vacations, or cooking at home more often.
“It’s less glamorous, but the payoff is real: building a net worth of hundreds of thousands of dollars in your 20s, which is rare and firmly upper class compared to most of your generation,” Lyulkin said.
Savings
“The more realistic outcome for high earners in their 20s is saving 20% to 30% of income rather than 50%,” said Lyulkin. “Someone making $250,000 to $500,000 in big law, tech, or finance who consistently saves at that rate will still accumulate $300,000 to $500,000 in net worth by their late 20s.”
Lyulkin commented that this balance of enjoying your 20s while building wealth is what sets you apart from 90% of your peers.
“Real estate gains and inheritances aren’t part of this picture-the real driver is how aggressively you save and invest during your highest-earning early years,” Lyulkin said.
More From GOBankingRates
