7 Things the Upper-Middle Class Can’t Afford Anymore
Written by
Cindy Lamothe
Edited by
Amber Barkley
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
In the past, being considered upper-middle class meant being able to afford the kind of comfort that isn’t cheap or common. But now, according to Mafe Aclado, finance expert and general manager of Coupon Snake, “we live in an economic period when being middle class has pretty much lost its glory and, to be honest, the upper-middle class [is not] completely unaffected by this new reality.”
Aclado went on to explain that the previous idea of being considered upper-middle class was “you made enough to be secure in your financial future, either because you built up enough to feel secure or because you had enough plans in motion to guarantee the protection of your financial future.” These days, that may come with a few more caveats than you may have thought.
If your goal has been to reach the upper-middle class, you could be in for a disappointment. Here are some key things the upper-middle class can no longer afford.
Recreational Vehicles
“The upper-middle class used to be able to afford boats, snowmobiles, RVs or whatever other recreation vehicle they wanted,” said Melanie Musson, finance expert with Insurance Providers.
Not only have those items increased in value rapidly, but she noted loan interest rates are high, making them cost even more.
International Travel
Many in the upper-middle class used to be able to spend a couple of weeks or even a summer abroad.
“Now, with the cost of housing, school and groceries increasing while investments are precariously balanced and at risk of losing, they can’t afford to spend money on luxurious travel,” Musson said.
Day Spa Treatments
“The upper-middle class hasn’t had to completely eliminate spa treatments,” Musson said. “But they have to be more careful about spacing out visits because they’re expensive, especially when there are many other pressing necessities to pay for.”
Also, she said tipping culture demands that in addition to the high cost of spa treatments, you must spend another 20% tipping.
Sending Kids to College Without Debt
“Today, upper-middle class families have joined the list of people who now need credit to pay for their kids’ college education,” Aclado said. “The truth is college cost isn’t as affordable as it once was for upper-middle class families, because between rising cost of tuition, the fact that being an acceptable and respectable member of society has now been tied to whether or not their kids receive a college education.”
This, she explained, increases their pressure to send their kids to college.
“Plus the fact that the upper-middle class income has not really kept up with inflation, being able to send their kids off to college without needing a student loan is just something the upper-middle class can no longer afford.”
A Luxurious Retirement
Also atop the list of things the upper-middle class can no longer afford is a luxurious retirement.
“The upper-middle class are now one of the classes that are worried they may not be able to afford retirement,” Aclado said, “because inflation and increased cost of living have made it difficult for them to grow a healthy retirement portfolio.”
Paying Off Mortgage
According to Aclado, being able to pay off a mortgage long before retirement used to be one of the financial luxuries reserved for the upper-middle class and the super wealthy.
“Not only did they used to be able to enjoy this privilege,” she said, “but they could easily afford it with much ease. However, now that is just one of the things high living costs have robbed them of.”
Homeownership in Desirable Urban Areas
Another major shift is the shrinking accessibility to homeownership in desirable urban areas, said Justin Godur, real estate expert and CEO of Capital Max.
“Property values in top-tier neighborhoods have surged so much that even dual-income families find themselves priced out,” he explained. “In essence, what was affordable a decade ago now feels like a stretch, even for those who’ve maintained solid financial standing.”
While inflation affects everyone, he said, its impact on the upper-middle class has exposed just how precarious financial security can be.
“I’ve seen firsthand how inflation and rising costs have redefined what the upper-middle class can afford,” Godur said. “Inflation has stealthily eroded purchasing power, and even those who once felt financially secure are now feeling the pinch.”
More From GOBankingRates
