Are You Actually Rich or Poor? Income To Be In Upper, Middle & Lower Class

Recently, there's been a serious pandemic in America. About 50% of people believe that they are in the middle class. But what if most people are wrong? Today I'm breaking down the actual income ranges of each class, what life looks like in each one, and giving you practical strategies to level up. I see this issue every day with clients. They come to me making six figures, feeling like they should be comfortable, and yet they're still struggling. Why? Because what used to be considered good money doesn't go nearly as far today. Just yesterday, I went into a taco spot, not an expensive one, and spent $25 on a quesadilla, two tacos, and a Mexican Coke. $25! This is the reality we're living in. And before you fat shame me in the comments, I'm 6'5", 225 pounds, I've been doing the intermittent fasting thing, so I'm eating, you know, a bigger, protein-rich lunch. Thank you very much. Now let's get into the numbers and see where we actually stand. Before we continue, I'd like to state that these figures are not exactly exact, so don't rip me to shreds in the comments for this. They're subject to change and influenced by a variety of factors, including the size of household, you know, affordability, and all these different geographic locations. So now that that's out of the way, let's get into it. According to the most recent report from the U.S. Census Bureau, you're in the lower class if your household income is between $0 and $32,150. If you're single, that cutoff is really like $15,650 a year. No joke, life in this income bracket is tough. There's no room for error and probably no buffer for any emergencies. People here typically work a low-wage, labor-intensive job. This could be like a cashier, a service industry position, you know, the guy flipping the sign outside of the big box store that's going through like the 50% liquidation event. These jobs offer minimal benefits and little job security. If you get sick or lose your job, there's probably little to no safety net for you. Not an ideal scenario, and this is a place where you need to do anything you can to level up. And thankfully, there are multiple ways out of this scenario. Just like the old saying goes, it's never too late to start. I've got three key strategies to move you up to the next level. Number one, build a small emergency fund. Start with just $400. That already puts you ahead of the 37% of Americans that do not have $400 for an emergency without having to borrow or sell something. And look, I know this is tough. Trust me, but if you need to sell something, if you need to work extra hours, do whatever you can, get that money in savings away from your checking account as fast as humanly possible. And I would not worry about three to six months of expenses immediately. Just start small. Something is better than nothing at this point. Two, renegotiate every bill and begin to tackle some high-interest debt. Most people assume that bills are fixed, but they are not. Even serious things like medical bills can be negotiated. A study found that 59% of Americans that had medical debt negotiated at least one bill, and 93% of them got it lowered. When you think about this as a dollar per hour compared to what you're normally getting paid, this is a fantastic use of your time to negotiate that bill. Call your service provider, credit cards, insurance companies, utilities. Ask for better terms. Cancel unused subscriptions. You probably don't have money for subscriptions at this point, to be frank. Every dollar helps build that emergency fund. Three, focus on learning new skills. It's hard to get significant raises in minimum wage jobs. So focus on skills that can get you a better paying job. Consider apprenticeships, trade schools. Switching paths to become something like an electrician, a hairstylist. Something can just dramatically increase your income. And look, quick riff here. When I was 16, my first job was a tile installer's assistant. And I realized very quickly, like, you know, I forget what I was getting paid. Not a ton at 16 years old. But I knew that I did not want to be on my hands and knees at 6'5", you know, for the rest of my life. And so I quickly decided, like, I got to do something else. I won't tell you my whole life story here, but the reality is decision making, deciding that this is not the life you want to live anymore, is absolutely step one. Take responsibility for your situation. There are tons of things that you can do to better yourself. Even, like, online coding schools for $200 a month. Those exist. There's a million ways that you can level up. So don't get discouraged, but take action. You're in the lower middle class if your income is between $34,636 and $59,500. For singles, it's between $23,660 and $39,667. The big difference here is you have a little more income to cover the bills. You're likely still living paycheck to paycheck here, but you can occasionally afford some modest luxuries. Maybe a road trip once or twice a year. Jobs in this class are typically more stable with slightly better benefits. And this could be an administrative assistance type role, retail manager, or a home-based catering or baking business. To move up, you need to optimize every dollar with these four strategies. Keep a tight leash on your cash flow. You could consider the 50-30-20 rule, which is 50% for needs, 30% for wants, and 20% for saving, investing, debt repayment. If you're eating ramen and still can't save 20%, start with 5% to 10%. The goal is not to wake up and put these dollars all in this box today, but to work towards these goals over time. Stop price tag shopping and instead consider the cost per use. So a $6 sweater that falls apart isn't ideal. If you have a $60 sweater that you can wear 200 times, that brings the cost per use to almost nothing. Next time you buy something, consider how many times you're going to use that and factor in that cost per use. And if the number isn't realistic, it's probably too expensive and you probably need to just wait. Three, check and improve your credit score. A low credit score makes everything more expensive. According to the Mortgage Bankers Association, having poor credit could add $59,000 to your overall mortgage payment over time compared to having strong credit. You can check your score for free at annualcreditreport.com. And that is like the only federally authorized site. A lot of these other sites will have a lot of upsells and different things in there. So check that one if you want to look. Here's where most Americans think they are. The middle middle class. You fall into this category if your household income is between $52,000 and $98,500. Singles in this category might earn around $76,000 annually. Life in this area offers more financial stability, but you're not free from financial worry. You likely have some savings and investments, own a car, maybe own your home or are working towards home ownership, take regular vacations, although you're probably not staying at the Ritz. And you probably eat out regularly at budget-friendly places. For work, you likely have a degree or specialized skill in a white-collar job or a skilled trade. Could be registered nurse, accountant, entry-level software development, freelance digital service provider. Here's the real issue, though. The middle class is shrinking. It has been for decades. And inflation acts as a silent tax while wages stay pretty stagnant. What used to be considered a good middle class salary of $60,000 doesn't really cut it anymore. To avoid staying stuck, avoid these financial traps. Stagnant or inconsistent retirement contributions. Aim for at least 15% of your income or at the bare minimum, meet your employer's match. One in four workers does not take advantage of their 401k employer match, leaving over $1,000 of free money on the table every year, which again could compound for decades, by the way. The average 401k balance for people nearing retirement far below what most people need. Two, investing only in retirement accounts. The wealthiest households invest far more into stocks, private equity, and businesses than those with lower net worth. Building wealth is more than just income. It's about growing assets. Three, having no financial net worth. Your financial network might be your greatest point of leverage. If your friends constantly make poor financial decisions, you'll probably unconsciously begin doing the same if you don't already. Build an inner circle of financially savvy, ambitious people with similar goals. I cannot stress that enough. And I want to say something real quick. I know that there are people watching this video rolling their eyes about like upper wealth people having more stocks or real estate or business interests or whatever else. But the reality is you have to make a decision for yourself. Yes, you probably don't know very much about these things right now, and that's OK. Commit to learning about it. Commit to learning and meeting new people that are doing these things. On an almost daily basis right now in my life today, I get connected with people that are doing crazy things that are out of my comfort zone, that are far beyond my understanding. And that is because I'm out here putting myself out there doing this stuff. If I was just working in corporate America, that would not be the case. For me personally, not to say that you can't work in corporate and still make connections because you absolutely can. But the reality is it's a mindset thing. You have to get uncomfortable. That is the soup du jour. You're in the upper middle class. If your household brings in between $106,000 a year and $150,000 a year. And if you're single, probably between $84,000 and $128,000 annually. The defining feature of this class begins to be financial security. If you're in this class, you likely own a home in a nice neighborhood, drive a decent car, send your kids to good schools, occasionally fly Economy Plus or maybe First Class, stay in nicer hotels, eat at fancier restaurants or splurge every few months. You've likely got some investments, but a good chunk of your net worth is probably tied up in home equity. You probably have a degree or some advanced certification, software engineering, medicine or dentistry, law. Perhaps you're an e-commerce brand owner or maybe a corporate executive. And as the rapper Biggie Smalls famously said, mo' money, mo' problems. At this level, you probably face more complex financial decisions. Dividing where the money goes can actually be tasking. And you're likely beginning to be more overwhelmed with all of the responsibility. But listen up, it doesn't have to be so overwhelming. The key to surviving this and leveling up is capital efficiency. Maximizing every dollar through these strategies. Max out all tax-advantaged accounts. At this income level, taxes are likely to be one of your biggest expenses. In 2025, you can contribute up to $23,500 in a 401k or $31,000 if you're over 50. $7,000 into an IRA or $8,000 if you're over 50. You can use backdoor Roth contributions if your income is too high for regular contributions. If you've got a high-deductible health plan, look into health savings accounts. They offer a triple tax advantage with tax-free contributions, growth, and withdrawals for qualified medical expenses. Your next big opportunity is probably not coming from a LinkedIn job posting. It'll probably come from the right conversation in the right rooms. Three, own things that make you money. Wealthy households own significantly more businesses than middle- and lower-class households. They don't just have high-paying jobs. They own multiple income-producing assets. Start a side business. Partner with other people. Invest in someone else's business. I really can't stress this one enough, and it feels a lot like the chicken or the egg, like, oh, I don't have enough money, therefore I can't do this. Mindset. Everything is mindset. Decide what you want and go for it. Four, automate your finances. From my experience, this is the most important strategy that everyone should use. When it comes to managing your money, it's the easiest one, too. All you have to do is create separate accounts for spending, bills, savings, and investments. This stops you from sabotaging yourself every time a paycheck hits and saves you the stress of sorting out all the bills. Want to finally try automation for real this time? I created the Automation Blueprint to help you break the paycheck-to-paycheck cycle without strict budgeting or sacrificing your lifestyle. This is the exact system that I use, and it's now available for you, too. Go to roguefinance.us slash blueprint, which is linked down in the description, and start building your automated financial future today. No budgeting, no apps, just results. Now, most of my clients fall into this upper-middle, upper-class category, and this is how they take things to the next level, by dialing in their finances. You know, I just had a client who happened to be 61 years old in the finance industry, and he got a $65,000 salary increase the other day. And because all of this system is in place for him, all that extra is just going to get saved automatically without him thinking about it, going to all the things he wants it to do. So, again, check out the guide in the description. Now, you're in the upper class if your income is around the $323,000 area. Singles here making $169,800. Note that the Federal Reserve data only really goes up to the 90th percentile, and the wealthiest 1% of Americans can easily make over $500,000 a year. At this level, your income is likely a mix of salary, investment returns, and passive income. You might prefer earning less salary to pay fewer taxes and instead get paid in equity. You likely own a business or other appreciating assets, have a nice home, don't filter by lowest price when shopping, value time over money, and pay extra for better service. Hold premium credit cards for perks and experiences. For work, you could be a hyper-specialized professional, like a specialist doctor, a law firm partner, investment banker, hedge fund manager, venture capital-backed tech vendor, highly paid sales professional. A lot of opportunities in this category. Remember that all these numbers we just talked about are pretty location-dependent. Earning $100,000 in Manhattan is very different from earning $100,000 in Montezuma. And Montezuma sounded funny to me, and I had to Google where that is. Apparently it's in Georgia. And while you might be focused on income, net worth plays a huge role in determining your class. If you earn $1 million but spend $999,000, your net worth is lower than someone who earns $70,000 but spends $60,000. That's why it's still incredibly possible to build wealth without a high income. People do it all the time. If you invest $1,000 a month from age 25 to 65 with a 10% annual return, you'll likely have over $5.6 million. The income classes in America have shifted dramatically over the years. These days, what used to feel like a comfortable middle-class life typically takes two people earning over $100,000 to afford the same quality of life. But remember, wealth is not about keeping up with the Joneses. It's about financial freedom and security. Focus on what you can control. Building your emergency fund, reducing high-interest debt, improving skills, automating savings, making smart investments, surrounding yourself with financially savvy people. Your financial decisions have a massive impact on your future and can fill you with regret if you're not making the most of your money today. Check out my previous video and learn all you need to know about early retirement and social security. And if you're ready to level up your money game, apply for a free strategy session that's linked in the description below. All I do when I'm not filming content or hanging out with my family is helping six-figure earners break the paycheck-to-paycheck cycle without budgeting. If you're making six figures and getting stressed because your credit score is going down as your credit card balance goes up, this is your sign to book a call. Paying 30% on a credit card is crushing all of your financial dreams. But don't despair, I'm here to help. Take the first step and book the call now. Thanks for watching.