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Most people are content with a middle-class lifestyle. But anyway, what does middle class mean? The Pew Research Center defines the middle class as having an income between two-thirds and double the national median income.
In the third quarter of 2025, the median weekly U.S. earnings for full-time workers was $1,214, according to the Bureau of Labor Statistics (1). If we assume a 52-week work year that puts the average annual wage at $63,128.
According to this formula, if you earn less than $41,664, you are considered low income. And if you earn more than $126,256, you’re upper class. With that in mind, here are some signs that you are 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 are able to save a large percentage of your income for retirement, it may be that you are earning enough to move out of the middle class.
At average middle-class incomes, many workers struggle to fund a retirement plan, let alone save a higher percentage of their pay than the typical worker.
If you have a strong retirement fund, you may want to consider diversifying your investments with a gold IRA in the future.
One method that many people use to invest in gold is a self-directed gold IRA.
A gold IRA allows you to invest in physical forms of gold and other precious metals 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 used as part of a well-diversified portfolio.
If you’re a recent upperclassman — and therefore new to investing — you’ll want to make sure your retirement fund is on the right track. To help you spend less time researching and worrying about it, you can talk to 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 plans.
If you earn a large amount of passive income on top of what your employer pays you, it may be that you are no longer middle class.
Many high earners have reliable sources of income 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 regular income.
You can tap into this market by investing in shares of holiday homes or rental properties through Arrival.
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 owning your own rental property.
To begin, simply browse through a selection of vetted properties, each chosen for their potential appreciation and income generation. Once you’ve chosen an asset, you can start investing for as little as $100, earning potential quarterly dividends.
First National Realty Partners (FNRP) allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibility of homeownership.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands such as 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 rental costs cutting into their potential returns.
Just answer a few questions – how much you want to invest – to start browsing the full list of available properties.
If you’re in a position to invest a larger than average proportion of your income, it’s time to consider diversifying your portfolio outside of traditional opportunities for wealth-building, such as the stock market and real estate.
One standout example: postwar and contemporary art, which outperformed the S&P 500 by 15% from 1995 to 2025 while showing almost zero correlation with traditional equities.
Until recently, this world was off-limits. Now, with Masterworks, you can buy fractional shares in multi-million dollar works by icons like Banksy, Picasso and Basquiat. While art can be liquid and typically requires long-term holding, it provides unique portfolio diversification.
Masterworks has sold 25 artworks to date with total annualized returns of 14.6%, 17.6%, and 17.8%.*
MoneyWise readers can get priority access to Diversify with Art: Leave the waiting list here
*Past performance is not indicative of future returns. Investment 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)’
Most people don’t think about taxes until it’s time to file their annual 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 enough to move out of the middle class.
These tax-minimizing strategies can include maximizing retirement plans, taking losses on investments to offset capital gains (and some ordinary income), and increasing charitable contributions.
Middle-income families often have to borrow to meet their basic needs — especially given the impact of inflation in recent years. Case in point: 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 carry is a mortgage and you can cover your expenses without charging a portion of your bills to a credit card, you may have passed the middle class.
We rely only on vetted sources and reliable third-party reporting. For details, see our editorial ethics and guidelines.
US 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.
