15 Signs you are in the UPPER MIDDLE CLASS!!

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15 Signs you are in the UPPER MIDDLE CLASS!!

Jaime Schekaiban • May 29, 2020

What separates the Middle Class with the Upper Middle? Read Below!

There are three classes in America and the rest of the world. You have the lower class, the middle class, and the upper class.

What separates one from the other is their income. There is a straight number of USD that you make as a single individual or family to be considered one of them.

19% of society is considered upper class, 52% is considered middle class, and a staggering 29% is considered lower class.

Middle class has a median income of $80,000 (adjusted to 2020), Upper Class has a median income of around $200,000, and lower class is earning lower than $40,000 per year.

There are gaps in between that are considered “lower medium” and “upper medium”. We are analyzing today the “upper middle class” which is one you need to achieve in order to jump to Financial Freedom.

You can recognize 15 signs that someone is in the Upper Middle Class:

1. You have a Secondary Source of Income

People in the middle class usually live off one source of income, their job. They rely 100% on it, making it their bread and butter.

Their income from their job is not that strong, and most of them will not likely save anything at the end of the month.

If they saved, they would save less than 20%, and it will not be significant for their goal to achieve Financial Independence. A lot of them live paycheck to paycheck, meaning they don’t save anything. (60% of them)

2. You Received a Good Education

People in the Upper Middle Class usually went to a good university and got a degree. It could be a doctor or lawyer, but also a 4-year degree in Engineering or Business.

When you have a degree, your life starts in a certain income from an early age. It is not the same to start earning $30,000 per year than to start earning $60,000 in your 20’s!

When you start earning more, you start realizing you can do more things with your money. You also surround yourself with more financially successful people, which encourage you to be better with your money.

3. You Take Pride in Your Job

When you went to college, good a great job, you feel passionate about it. There is no doubt that someone making $100,000 a year will most likely love their job more than someone making $40,000.

This is not a must by any means. The studies have shown people that take pride in what they do feel that it is not a job anymore.

Whatever you do for a living, take pride on it. This will help you plan ahead and be financially free in a shorter timeframe.

4. They Move Around

Upper Middle-Class people know that they have to go chase opportunities. They will not come knocking on their doors.

It happened to me when I moved from Mexico to the US. I came looking for an opportunity and fought for it for 7 years.

Sometimes staying in your same city and hanging out with the same people will not be beneficial. I am not saying you should ditch your old friends (by any means). You should just be open to new frontiers.

People who move around different companies, different cities and countries, and explore new risks are more successful than the rest.

5. They are Culturally Educated

When you talk to someone that has travelled, and has lived in different places, you will realize it right away.

People stand out from the crowd, and they seem to have a more in-depth conversation about anything.

The more money and ability you have, the more you travel, the more you can open your mind and create wealth and success.

6. Interested in Quality over Brand Name

Upper Middle-Class people care about their money. They don’t have that much money as the Rich do, so spending it requires even more attention.

When buying clothes or electronics, they carefully inspect all details. If they don’t have to spend $700 on a pair of shoes, they will most likely not.

The rich are equally as careful, but they could spare thousands of dollars here and there without worrying about their finances. Upper middle-class individuals will like to buy on quality and stop pretending they are rich.

7. Don’t Buy Things on Debt

Unless it is an investment, such as Real Estate, they do not get anything on credit. They pay their car in cash, their electronics in cash, their furniture in cash, their trips in cash.

If they use a credit card, they use it as cash. Meaning they will buy something and pay it off in the 25 days you get from the credit card company to pay it back without interest.

They love to accumulate points on credit cards. (like me!) They use the credit cards as free money and paid them in full before the due date.

Buying things in monthly installments is terrible. Unless you get a great deal like the iPhone Upgrade Program from Apple, you do not need to get into that situation.

8. You Shop Around for Deals

Upper middle-class people give themselves some luxuries. They like to travel, and they like to get entertained.

The difference is the way they spend their money. Middle class will only spend it without much thought, while the Upper will give it a lot of thought and analysis.

For example, I never buy clothes except for Holidays. I love shopping at the Outlet Stores on a Black Friday weekend. You can find the best sales in the planet!

Why buy a pair of shoes for full price at $200 when you can buy them for $70 in the Outlets on Black Friday? They are the same pair of shoes! You are just making the owner really rich.

9. You Have Connections

It is no secret that the more money you have, the more people you know, and they know you. When you are in the lower class, your network of friends will most likely also be poor.

Being in the upper middle-class will open you to opportunities to know other uppers, as well as some of the highest upper class. They could become your mentors and help you jump into the last stage of Financial Freedom.

10. You Understand Money

There is no way you can make more money and KEEP MORE money if you don’t understand it. Every class (Lower, Upper-Lower, Middle, Upper-Middle, Upper) understands and values money in a certain way.

It is not just the amount that separates the classes. It is the mindset and the actions that do. Why do you think that when you give a lottery prize to a Lower-class individual, it causes such a mess?

People end up in a lot of trouble, divorces, debt, IRS chasing them, going to prison, sick, or even dead?

That is because a certain amount of money does not change your mindset. I can give you a million dollars today and that will not automatically flip a switch in your head and make you think like Kevin O’Leary. You need to earn it first.

11. You Have a Financial Advisor

Upper Middle-Class individuals surround themselves with experts for their money. You may hire a financial expert, a lawyer, an accountant, etc.

You need to file your taxes with deductions. It is not a one-click thing you do in TurboTax anymore.

You most likely have investments, either in Real Estate or in the Markets. You need guidance as how to proceed legally and do things the right way, especially with taxes.

Middle class people only make their salary and forget about the rest. Upper Middle will have more things to think about than just a salary. The difference with the Rich is the businesses they manage.

The Rich manage bigger businesses and investments. They started out like you.

12. You Make your Health a Priority

This is not a rule of thumb for all classes, as you can find healthy and unhealthy people in all of them.

In the last years, with all the information on the internet, people have become savvier about what is good and bad for their health.

Let me give you an example. When I buy a Whataburger with Fries and a Drink, I spend $9. It is delicious. I know it is not healthy, and I cannot eat it every day, but it is still delicious, and I enjoy it a lot.

When I go and get a good salad, I spend $20. That is more than twice than the Fast Food!

Eating healthy requires more money. Organic foods, low fat, low sugar, etc. will most likely cost more. The better you are with money and the more you appreciate your health, the more you will spend money on you, and exercise more.

13. You Were Privately Educated

This is the one I am least familiar with since most of my friends that fall into this category went to public schools.

When you live in the city and not the suburbs, you don’t find the best schools. This will depend greatly where you live. That is one of the reasons people pay for private education.

In my country of origin, Mexico, mostly all of the people I know paid for private education. It is a necessity, since public schools lack the quality you need to succeed.

I will say that it doesn’t matter if you went to a public or private school, what matters is your mindset. Surround yourself with people that will teach you about money and investments.

14. Your Children Can Afford an Unpaid Internship

Parents from the Upper Middle-Class will be freer with money than the middle.

You are able to pay for their college degree entirely, meaning they will come out with no debt. This will give them an opportunity to pursue whatever they want without worrying about debt.

IF there is a need to start working without pay, you will also relate to the book “Rich Dad, Poor Dad” which you have read many times, and tell them it is OK to do so.

Middle class families cannot afford to pay for college. Students who do go get into enormous amounts of debt and come out with a disadvantage from the start. Make sure you teach your children about money since Elementary or hire someone that can do it for you.

15. You are Comfortable with Who You Are

It is no secret that people from the Lower, Upper Lower, and Middle Classes complain a lot. They are always blaming the system, the government, the economy, etc.

People that jump into the Upper Middle and Upper category do not complain that much. They still do, because it is human nature, but not to that extent.

If you are making a strong income, you have investments, you got savings, you have an OK life, you can feel comfortable with what you'd become. This doesn’t mean being complacent.

You will always be wanting more and to become a better person. That only stops with death.

Closing Thoughts:

It is very difficult to become Financially Free (when your income exceeds your expenses without taking a salary into account) if you belong in the Lower, Upper Lower, and Middle classes.

More likely, you will achieve Financial Independence when you belong in the Upper Middle and Upper classes. Unfortunately, some people belong in the Upper Middle-Class and are not free.

This is because they don’t save and invest enough.

If you are making a six-figure income and are not Financially Free, stop and think what your plan is to become free.

Having a $200,000 a year job and spending all the money on luxuries and trips will bring you to a very comfortable and catastrophic life. When you lose your job, your life is over. You will drop one or two classes in an instant!

Save 20% or more of your income every month, invest wisely, and lower your expenses to their max. This will guarantee you achieve Financial Freedom. If you wish to continue working a job after you are free, good for you!

It means you really love what you do. It cannot be called a JOB anymore.