A little over half of all Americans are considered “middle class,” according to the Pew Research Center. In comparison, only 19% of households are “upper class.”
Middle-class households are those who earn two-thirds to double the U.S. median income, currently $80,610. This means you’d be considered middle class is you earn $53,740 to $161,220 annually. To reach upper class status, however, you’d need to earn at least $169,800.
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But income is only part of it. These are the top signs that you’re on track to go from middle to upper class in 2025, according to financial experts.
Your Income Is Improving
If your income has consistently been improving, and especially if you’ve seen a significant income boost, you could be on your way to upper class.
“This isn’t just about annual raises but involves leaps in earnings due to promotions, career shifts into high-paying industries or successful entrepreneurial ventures,” said Dennis Shirshikov, a finance expert and head of education at iTutor.
An example of this would be if you’ve started your own business and have experienced substantial income growth. Alternatively, you might still be in a salaried position but are now earning much higher figures — ideally with room to grow.
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Your Money Mindset Is Changing
You may have also noticed a shift in your financial mindset. At first, you might only see minor changes — such as how you view money or debts.
“The very first sign that you’re moving up is you’ve started building wealth and aren’t just thinking paycheck to paycheck,” said Alfred Polizzotto, a certified financial planner (CFP) and managing partner at Polizzotto & Polizzotto, LLC.
“Wealth is about assets that appreciate over time,” he continued. “If you’re investing in stocks, real estate, or even starting a business, you’re thinking like someone who’s aiming for the upper class.
“This mindset shift is the first big win because wealth-building is a long game.”
You Have Diversified Income Streams
If you’ve added on a second, third or even fourth income stream, you could be on track to transition from the middle to upper class.
Having multiple income sources can also lead to faster income growth and a reliable safety net.
“You’ll never see upper-class individuals just rely on a single paycheck. They’ll always have a handful of different projects going on at the same time, each paying them sufficiently well,” said Polizzotto.
“If one stream dries up, because you lose your job or a side gig doesn’t pan out, you’ve got others to fall back on.”
Look at your side hustles and your returns on investments: Are they bringing in enough where you don’t have to worry if something unexpected comes up? If so, that’s a good sign.
You’ve Gained More Lucrative Skills
Having the means to improve your skills — especially if those skills are bringing in more earning potential — is another sign that you’re moving up.
“Enhancing skills — especially in high-growth fields like technology or healthcare — can lead to higher-paying opportunities,” said Shirshikov.
This can come in many forms, from pursuing an advanced degree or certification to taking workshops or seminars. Essentially, it’s anything that makes you stand out from the crowd and brings in higher-paying opportunities.
You Have Appreciating Assets
Does your investment portfolio contain appreciating assets like real estate or stakes in a profitable business? According to Shirshikov, this could be another sign of where you’re heading.
Note that this doesn’t necessarily mean you own your own home as many middle-class individuals do. However, it doesn’t hurt to have a mortgage-free property.
You Have a Strong Credit Profile
People in the upper class don’t rely on financing in the same way middle-class folks do. If you’ve paid off your debts and can afford more expensive things — like real estate — without taking out a loan, that’s another good sign.
But if you have a strong credit profile and understand how (and when) to use loans to your advantage, that’s even better.
“It’s great if you’ve been keeping up with your bills and managing debt well. It means lenders see you as trustworthy, which opens doors to loans for things like buying a home or starting a business,” said Polizzotto.
“You can secure loans with lower interest rates, which means borrowing costs less over time.”
You’ve Started Giving Back
When money is still tight, you’re probably not paying it forward just yet. But if you have enough to start giving back, you could be heading to the next socioeconomic status.
“Only when your basic needs are met and you have extra resources at your disposal can you afford to give back to others,” said Polizzotto. “Someone who’s struggling financially can’t donate that much money or time without sacrificing their own well-being. And that’s completely understandable because even a lot of middle-class families struggle to donate.
“So if you’re in a position where you can give back consistently, without any hesitations, that’s the hallmark of upper-class status.”
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This article originally appeared on GOBankingRates.com: 7 Signs You’re on Track To Go From Middle Class to Upper Class in 2025
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