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Many Americans underestimate their financial standing, especially those who prioritize saving over status or opt for stability over flash. While “upper-middle class” can feel like an elusive label, it often comes down to consistent financial habits rather than income alone. People in this bracket may not feel rich. However, their consistent behaviors build quiet wealth.
Here are the signs indicating someone might be upper-middle class, even if it doesn’t always feel that way.
You Treat Money Like a Tool
Neevai Esinli, founder of Esinli Capital, defined the upper-middle class in 2025 as households earning between $106,000 and $150,000 and having a net worth between $500,000 and $2 million. They also typically have at least $245,000 in retirement savings by their mid-50s.
However, it’s not just the dollar amounts that make the difference. Esinli said that upper-middle-class individuals allocate their money with purpose.
For example, he noted that many upper-middle-class individuals invest around 18% of their income in retirement and insurance while still enjoying lifestyle comforts, often spending upwards of $70,000 a year on travel, dining and conveniences such as meal delivery or house cleaning.
You Can Handle a Major Emergency Without Debt
Someone who can replace a car, cover a $5,000 medical bill or manage several months of unemployment without relying on credit cards or personal loans is operating from a position of genuine financial stability.
This sets them apart from most Americans.
According to Federal Reserve data, roughly 37% of Americans surveyed reported that they couldn’t cover a $400 emergency from their savings alone, and 13% said they couldn’t cover the expense by any means.
Additionally, a Remitly analysis revealed that the average American’s emergency funds amount to around $16,800 and nearly one-third of Americans have no emergency savings.
You Max Out Retirement Accounts Every Year
Upper-middle-class earners often prioritize retirement savings, regularly maxing out 401(k) plans, IRAs, or HSAs. They view retirement contributions as non-negotiable, not optional.
“Upper-middle-class individuals can put money toward retirement, so they’re ensured a comfortable financial situation after they retire,” said Melanie Musson, finance expert at Clearsurance.com. “Individuals from lower socioeconomic backgrounds often struggle to save enough money for their futures.”
You Can Afford Big Expenses
For many upper-middle-class households, large expenses — whether a vacation, a home repair or a wedding season’s worth of gifts — are anticipated, not disruptive.
This reflects a deeper habit of proactive financial planning, where budgeting isn’t just about cutting back but about ensuring life’s bigger moments don’t derail long-term goals.
“There’s a feeling of freedom in being able to spend money and not feeling stressed about it,” Musson said. “Middle-class individuals can maintain their lifestyle but will usually struggle to cover unexpected costs or expensive luxuries.”
You’re Investing Outside of Retirement
Upper-middle-class individuals often go beyond workplace accounts, maintaining brokerage accounts, index funds or even real estate in their portfolios as part of a long-term wealth strategy that promotes flexibility and growth beyond retirement savings.
Lower-cost taxable brokerage accounts also offer greater flexibility than retirement plans. After maxing out tax-advantaged accounts, a brokerage account is the logical next step for those with extra cash flow. It offers a wide range of assets, no withdrawal penalties and tax-efficient long-term capital gains.
In addition, upper-middle-class investors diversify their assets by spreading investments across various industries and asset classes to mitigate the risk associated with trends or events in any particular industry.
You Have Options
Upper-middle-class financial habits often manifest not just in bank statements but also in life flexibility.
Whether it’s leaving a toxic job, relocating to align with values or writing a check to solve a problem, people in this bracket often have the means to choose, not just cope.
“In this political world, upper-middle class people have the option to move to another state or even country that better matches their values,” said Jay Zigmont, certified financial planner (CFP) and founder of Childfree Trust, a financial planning firm specializing in “helping childfree and permanently childless” clients.
“Upper-middle class people have rough times also, but they are able to use their own emergency funds to make it through and write a check to improve their situation,” Zigmont added.