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Many people are content to live a middle-class lifestyle. But what does middle class even mean, anyway? The Pew Research Center defines the middle class as having an income between two-thirds and double the national median income.
During the third quarter of 2025, the average weekly US earnings for full-time workers was $1,214, according to the Bureau of Labor Statistics (1). That puts the average annual salary at $63,128 assuming a 52-week work year.
Under this formula, if you earn less than $41,664, you are considered lower income. And if you make more than $126,256, you’re upper class. With that in mind, here are some signs that you’re no longer middle class, but you’ve started to climb the ladder.
In its How America Saves 2025 report, Vanguard states that for 2024, the average 401(k) participant contributed 7.7% of their salary to their account (2). If you manage to save a higher percentage of your income for retirement, then you may be able to earn 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 paycheck than the average worker.
If you have a strong retirement fund, 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 form while still 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. Keep in mind that gold is often best used as part of a well-diversified portfolio.
If you’re newly upper class — and therefore probably new to investing — you’ll want to make sure your retirement fund is on track. To help you spend less time researching and worrying, you may want to talk to a financial advisor.
Finding the right advisor is easy 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 salary your employer pays, you may no longer be middle class.
Many high earners have secure sources of income other than their salaries, from rental properties to investment portfolios, and many of these pay dividends regularly.
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 vacation home shares or rental properties through Arrived.
Backed by world-class investors including Jeff Bezos, Arrived allows you to invest in parts of vacation and rental properties, earning a passive income stream without the extra work of owning your own rental property.
To get started, simply browse their selection of vetted properties, each chosen for 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 retail anchored commercial properties without assuming the responsibilities of ownership.
With a minimum investment of $50,000, investors can own a portion of properties leased by national brands like Whole Foods, Kroger and Walmart that provide essential goods to their communities.
Thanks to Triple Net Leases (NNN), accredited investors can invest in these properties without worrying about cutting tenant costs into their potential returns.
Answer a few questions – including how much you’d like to invest – to start browsing the full list of available properties.
If you find yourself investing a higher-than-average proportion of your income, it’s time to consider diversifying your portfolio outside of traditional wealth-building avenues such as the stock market and real estate.
One notable example: postwar and contemporary art, which has outperformed the S&P 500 by 15% from 1995 to 2025, while showing near-zero correlation with traditional stocks.
Until recently, this world was forbidden. Now with Masterworks you can buy fractional shares in multi-million dollar works by icons like Banksy, Picasso and Basquiat. While art can be illiquid and typically requires long-term holding, it provides unique portfolio diversification.
Masterworks has sold 25 artworks to date, producing net annual returns of 14.6%, 17.6% and 17.8%.*
Moneywise readers can get priority access to diversify with art: Skip the waiting list here
*Past performance is not indicative of future returns. Investment involves risk. See important Regulation A information at Masterworks.com/cd
Read more: Warren Buffett used 8 solid, repeatable rules to turn $9,800 into a $150 billion fortune. Start using them today to get rich (and stay rich)’
Many people don’t think about taxes until it’s time to file their annual return. But if you actively take steps—either on your own or with the help of an accountant—to reduce your tax burden, then your income may be high enough to break the middle class.
These tax-reducing strategies can include maximizing retirement plans, taking investment losses 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. An example: Between Q3 2024 and Q3 2025, total US credit card balances grew from $1.06 trillion to $1.11 trillion, according to TransUnion (3).
But if the only debt you have is a mortgage, and you can cover your expenses without having to charge a portion of your bills to a credit card, then you may have passed the middle class.
We only rely on verified sources and credible third-party reports. For details, see our ethics and editorial guidelines.
US Bureau of Labor Statistics (1); Vanguard (2); TransUnion (3)
This article provides information only and should not be construed as advice. Offered without warranty of any kind.
