Upper-class American households earn $153,001 or more, according to the Census Bureau. Learn how to increase your income and make the most of your money. [[{“value”:”
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In the United States, the income you earn is a major factor in determining if you are upper, middle, or lower class. But what exactly do you need to earn if you want to be in the upper class? Read on to see how much money you’d need to make to find yourself in this elite group.
This is how much you need to earn to be upper class
Upper-class Americans are the highest earners in the country. The income they earn is well above what most people bring home. It’s often enough to provide a pretty comfortable life.
According to data from the United States Census, you’d fall within this category if you have a household income of $153,001 or more. By contrast, you would be:
Upper-middle class with an income between $94,001 to $153,000Middle class with an income between $58,024 to $94,000Lower-middle class with an income between $30,001 and $58,020Lower class if you earned $30,000 or less
More than 90% of all Americans make less money than the $153,001 it takes to fall within the upper class. By contrast, the top 5% of Americans — the richest of the rich — have an annual income of $295,001 or higher. Those top earners often make more money in a month than some Americans do all year.
You can still be a financial success if your earnings fall short
Entering the upper class based on income can be a challenge, but the good news is that plenty of people can be financially successful even with annual earnings of well under $153,001. The key is to be smart about how you use the money that you do earn.
Not overcommitting to large fixed expenses is one of the best ways for people outside the upper class to eventually become wealthy, even without a six-figure income. If you spend too much on your house, your car, and other necessary costs each month, you won’t have enough left over to put into a brokerage account to invest for your future.
Start with the budgeting goal of keeping essential spending to 50% or less of your income, and then aim to limit discretionary spending to 30%. That’s the category for expenses like entertainment and other irregular expenditures. And always try to save the other 20% of your income. You’ll also want to steer clear of credit card debt and other high-interest debt that could make saving money harder.
Obviously, it’s a lot easier to get rich if you have over $150,000 coming into your bank account each year. But since so few Americans are part of the upper class, this isn’t in the cards for everyone. Don’t be disappointed if you aren’t among this small group of high earners, though. Just keep working on your own financial goals so you can build the financial security you deserve.
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