You are likely upper middle class if you sit in roughly the top 20 to 30% of the population, and the signs are not only about money: they include education, cultural capital, avoiding credit and being comfortable with where you are. Nobody goes from broke to billionaire in one swoop. There are layers, and the first is upper middle class status, which the video puts at the top 20 to 30% of the population. Think of the 15 signs below as checkpoints you reach as you move in the right direction.
Interestingly, they are not all about money. Several concern education, habits, relationships and attitude.
Watch the full video here, or skip to the breakdown below.
The 15 signs at a glance
- Another source of income, but you’d struggle to live off it (0:30)
- You’re probably highly educated, from a good university (1:23)
- You like what you do and take pride in it (2:11)
- You’re mobile and have moved around more than others (2:55)
- A high amount of cultural capital (3:45)
- You can identify and appreciate quality and utility (4:26)
- You don’t buy things on credit (5:01)
- You go on holiday to expensive locations, but shop around for deals (5:36)
- A network of influential friends and acquaintances (6:32)
- A good understanding of how money works (7:20)
- A financial advisor, though you call them more than they call you (8:36)
- A healthy lifestyle (9:16)
- You were privately educated (9:45)
- Your children can afford the unpaid internships (10:17)
- You’re comfortable with who you are and where you are (10:48)
1. Another source of income, but you’d struggle to live off it
Most people work for money, while the rich make their money work for them. Upper middle class sits somewhere in between. You still rely on your job, but you probably have money invested that brings in some income.
That might be a rental property, dividend-paying stocks or content that earns from ads. It is not enough to live on, but you know the process. You made something out of nothing, and it may be small now, but you know it can scale.
2. You’re probably highly educated, from a good university
The upper middle class has traditionally been tied to high levels of education. There is a good chance you are a lawyer, doctor, dentist, architect, engineer or corporate executive, jobs that require formal education and plenty of it.
If you have no formal degree, you have real-life education from the years it took to make your business successful. Either way, you invested a lot of time and resources in your education, and it got you this far. You can also tell people who know what they are talking about from those there for the Instagram picture and social clout.
3. You like what you do and take pride in it
Many people spend the week waiting for the weekend, when life has meaning. You probably do not have that problem. Being highly qualified usually means you are motivated by your work, even passionate. An architect loves buildings, from the design side and the math side, and a local business owner loves the company they built.
The video notes a strong correlation between life happiness and being engaged in activities that match your abilities and challenge you appropriately. Liking what you do also gives you a competitive advantage.
4. You’re mobile and have moved around more than others
Many people grow up in one place, find a job there, marry and settle, because it is the easiest option. You do not tend to take the easiest path. You embrace challenges, including a change of location.
That could mean moving far away to study at the best university you can get into, or jumping at a work transfer, perhaps to another country. The professional payoff is clear and what you learn about the world outside your bubble, and that broader knowledge widens your horizons.
5. A high amount of cultural capital
Cultural capital is your broader knowledge of the world, which you can apply to work, social interactions and free time. It makes you stand out and socially more mobile.
It can include what you know about the arts or literature, and how you talk or dress to come across as sophisticated without being pretentious or fake-rich. It can also include well-honed communication skills: you are articulate, you get your point across and people like hearing you talk.
6. You can identify and appreciate quality and utility
People are often obsessed with branded goods. They spend their lives buying things they do not need, to impress people they do not like, with money they do not have.
You have learned to appreciate what quality really is: long-lasting utility. Your things have a purpose and a good reason to be there, and they keep you creative, productive and authentic.
7. You don’t buy things on credit
Many people want things they cannot afford. It makes them feel more secure and gives the illusion of belonging to a social group they aspire to but cannot quite reach. They trade that illusion for months or years of installments.
If you are upper middle class, this probably is not you. You see credit as a financial instrument for increasing your wealth.
8. You go on holiday to expensive locations, but shop around for deals
People today have more holiday destinations within budget than ever before, yet a few desirable spots remain out of reach. Many can afford another continent only once in a while, and dream destinations like Bali, Thailand or Mexico may be a once-in-a-lifetime treat.
For the upper middle class, those places are accessible and may be regular getaways. As a self-described culture vulture, you interact with locals, try and learn about the food, and add to your cultural capital.
9. A network of influential friends and acquaintances
You are the average of the five people you spend the most time with. In this bracket, you mix with equally educated, sophisticated people in prominent positions, whom you meet through work, social events and maybe the golf course.
It is not only what you know but who you know, and you have plenty of both. Lawyers, company executives and local business owners are the kind of people who can make things happen when you need them to.
10. A good understanding of how money works
You understand that your money is worth around 25% less every 10 years, and how that happens. Your government will not be able to cover state pensions in any meaningful way, and you know when and how to use banks.
These are things other people never get to think about. The app mentioned in the video is its own app is aimed at helping entrepreneurs, managers and other high-achievers compound the knowledge they need.
11. A financial advisor, though you call them more than they call you
You are good with money, but not an expert, and you know when to ask for expert help on something as important as money. Most middle-class people have no advisor because they lack the investments to justify one.
Like the very rich, you have one. The difference is that the very rich are at the top of every advisor’s call list, so you will call yours more often than they call you. You trust that they will still come through.
12. A healthy lifestyle
You make smart choices, and they got you where you are. You make the same kind of choices about food, exercise and anything else affecting your health.
You are less likely to smoke or binge on junk food, and you probably have a gym or sports club membership and private health care. Performing at your best requires being healthy, so you prioritize it.
13. You were privately educated
The top 20% of earners want their children to stay in that bracket, so you give them every opportunity you can. Paying for private school is one of the best ways.
Since most of the upper middle class need high education for the jobs they do, you value education and spend a significant portion of your money on it.
14. Your children can afford the unpaid internships
Your kids are not born with a silver spoon, but they can probably afford time to figure out who they are and what they want, without the pressure of the immediate future. They can spend a summer earning nothing and learning a lot.
They will probably join team sports, since getting along with people is a major competitive advantage later in life, and they can afford to try as many things as possible because you have them covered.
15. You’re comfortable with who you are and where you are
You are happy where you are and do not have anxiety about it. You do not over-analyze, and you do not need a label to increase your perceived worth. The sense is that you have enough, and all it takes to level up if you want to.
Contentment does not mean you have no plans for bigger achievements. It means you do not need to pretend to be something you are not or obsess about your place on the social ladder.
Bonus: you are valuable to society
The video says people usually land in this bracket by being those who can build things or those who can fix things. Since most people cannot be bothered to do either, there is always room at the top for those who do. Knowing how to build or fix things is also a prerequisite for financial freedom.
Its big takeaway: as long as you learn how to create, build, improve and make the lives of those around you slightly better, the world will reward you.
FAQ
What does upper middle class mean?
In the video it means being in roughly the top 20 to 30% of the population, a first layer on the way from broke to billionaire.
What are signs you are upper middle class?
Signs include a second income source, high education, enjoying your work, mobility, cultural capital, avoiding credit, influential networks, a financial advisor, a healthy lifestyle and contentment with your position.
What is cultural capital?
It is your broader knowledge of the world, which you apply at work, in social settings and in free time. It can include knowledge of the arts or literature and strong communication skills.
Why does the upper middle class avoid buying on credit?
They see credit as a tool to increase wealth, not a way to buy things they cannot afford. Debt for a status illusion means years of installments.
Do upper middle class people have financial advisors?
Yes, according to the video. They are not an advisor’s top priority like the very rich, so they call the advisor more often than the advisor calls them.
Are the signs only about money?
No. Several concern education, attitude and habits, such as liking your work, being comfortable with who you are and making healthy choices.
Keep reading
- Signs You’re Moving From Middle-Class to Wealthy
- 15 Money Habits That Keep You Poor
- New Money & Old Money: 15 Differences
