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Many people are content with living a middle-class lifestyle. But what does middle class even mean, anyway? Pew Research Center defines middle class as having an income that’s between two-thirds and double the national median income.
During the third quarter of 2025, median weekly U.S. earnings for full-time workers were $1,214, according to the Bureau of Labor Statistics (1). That puts the median annual wage at $63,128 if we assume a 52-week work year.
According to this formula, if you earn less than $41,664, you’re considered lower-income. And if you earn more than $126,256, you’re upper class. With that in mind, here are some signs that you’re no longer a member of the middle class but have started to climb the ladder.
In their 2025 How America Saves report, Vanguard states that for 2024, the average 401(k) participant contributed 7.7% of their salary to their account (2). If you’re able to save a larger percentage of your income for retirement, then it may be that you’re earning enough to move beyond the middle class.
On an average middle-class income, many workers struggle to fund a retirement plan to begin with, let alone save a higher percentage of their salary than the typical worker.
If you have a strong retirement fund in place, you might consider diversifying your investments in the future with a gold IRA.
One method that many people use to invest in gold is a self-directed gold IRA.
A gold IRA allows you to invest in gold and other precious metals in physical forms while also providing the significant tax advantages of an IRA.
If you’re not sure where to start, you can check out some of Moneywise’s top picks for gold IRAs to compare your options for free. Just keep in mind that gold is often best used as one part of a well-diversified portfolio.
If you’re newly upper class — and therefore perhaps new to investing — you’ll want to ensure that your retirement fund is on the right track. To help you spend less time researching and worrying about it, you might want to speak with a financial advisor.
Finding the right advisor is simple with Advisor.com. Their platform connects you with licensed financial professionals in your area who can provide personalized guidance.
A professional advisor can also help you determine how many years you have left to invest before retirement and assess your comfort level with market fluctuations—two key factors in building the right asset mix for your portfolio.
Through Advisor.com, you can schedule a free, no-obligation consultation to discuss your retirement goals and long-term financial plan.
If you earn a large amount of passive income on top of the wages your employer pays you, it may be that you’re no longer middle class.
Many high earners have reliable income sources other than their paychecks, from rental properties to investment portfolios, and many of these pay regular dividends.
Smart investors look to real estate not only to diversify their holdings but also to provide them with regular income.
You can tap into this market by investing in shares of vacation homes or rental properties through Arrived.
Backed by world-class investors including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord of your own rental property.
To get started, simply browse through their selection of vetted properties, each picked for their potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100, potentially earning quarterly dividends.
First National Realty Partners (FNRP) allows accredited investors to diversify their portfolio through grocery-anchored commercial properties, without taking on the responsibilities of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities.
Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.
Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.
If you’re finding yourself in the position to invest a larger-than-average proportion of your income, it’s time to consider diversifying your portfolio outside of the traditional avenues for wealth-building, like the stock market and real estate.
One standout example: post-war and contemporary art, which outpaced the S&P 500 by 15% from 1995 to 2025 while showing near-zero correlation to traditional equities.
Until recently, this world was off-limits. Now, with Masterworks, you can buy fractional shares in multimillion-dollar works by icons like Banksy, Picasso and Basquiat. While art can be illiquid and typically requires a long-term hold, it offers unique portfolio diversification.
Masterworks has sold 25 artworks so far, yielding net annualized returns like 14.6%, 17.6%, and 17.8%.*
Moneywise readers can get priority access to diversify with art: Skip the waitlist here
*Past performance is not indicative of future returns. Investing involves risk. See important Regulation A disclosures at Masterworks.com/cd
Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)’
Many people don’t think about taxes until the time comes to file their yearly return. But if you’re actively taking steps — either on your own or with the help of an accountant — to lower your tax burden, then it may be that your income is high enough to go beyond the middle class.
These tax-reducing strategies may include maxing out retirement plans, taking losses on investments to offset capital gains (and some ordinary income), and increasing charitable contributions.
Middle-income households often have to take on debt to cover their basic needs — especially given the impact of inflation in recent years. Case in point: Between the Q3 2024 and Q3 2025, total U.S. credit card balances rose from $1.06 trillion to $1.11 trillion, according to TransUnion (3).
But if the only debt you’re carrying is a mortgage and you can cover your expenses without having to charge a portion of your bills on a credit card, then it may be that you have surpassed the middle class.
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
U.S. Bureau of Labor Statistics (1); Vanguard (2); TransUnion (3)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
