What Is The Lower Upper and Lower Middle Class Income

Understanding Wealth and Class in America

When I think of the upper class, the first image that comes to mind is someone with a luxury lifestyle—country clubs, ski vacations, a garage full of high-end cars, maybe even a whole team of therapists. But here's the truth: you don’t need as much as you might think to be considered “upper class.”

In this breakdown, I’m going to walk you through what the U.S. Census and other studies tell us about wealth, income, and class in America. We’ll use net worth as our benchmark because, in my opinion, it's a far better indicator of wealth than income alone. Let’s unpack where you stand—and how you can move up.

What Is Net Worth, Really?

Net worth is the value of everything you own—your assets—minus what you owe—your liabilities.

Say you have:

That’s $550,000 in assets.

Now, if you owe:

You’ve got $400,000 in liabilities. Subtract that from your assets, and your net worth is $150,000.

This figure is powerful. It reflects not just how much money you make, but how disciplined you are with it. High income means nothing if you spend it all. Net worth accounts for behavior, not just earning.

Poverty Class: The Bottom 20%

Median Net Worth: $6,030

Average Household Income: $25,000–$27,000/year

If you're here, you're living below the U.S. poverty line of $35,801 (2022 figures). It’s likely you’re living paycheck to paycheck, maybe caught in a debt cycle. You might be working minimum wage or close to it. Some in this group are just starting out—like 18-year-olds without much financial history.

There’s no shame in being here. Everyone starts somewhere. What's important is understanding where you are and how to move forward. That’s what the rest of this guide is for.

Lower Middle Class: 20th–40th Percentile

Median Net Worth: $43,760

Average Income: ~$48,500/year

Welcome to the entry-level of the middle class. This group includes blue-collar workers, new graduates, and immigrants still finding their footing. You’re earning more, but likely still tight on cash. Most of your income covers essentials, with just a little left over for discretionary spending.

According to a government initiative from 2009, the six financial goals that define the middle class are:

Yes, the vacation matters—it shows you’ve moved from survival to choice. It signals that your income isn’t just covering needs anymore.

But here's the issue: many people in this group spend more than they should. Whether it’s car payments, impulse shopping, or collecting every Squishmallow in sight, poor financial habits can keep you stuck.

Want to move up? Save more. Spend less. Grow the gap between what you earn and what you keep.

Middle Class: 40th–60th Percentile

Median Net Worth: $104,700

Average Income: $70,000–$71,000/year

This is the heart of America’s middle. If you're here, you're probably a skilled worker or an early-stage professional. Nurses, office managers, truck drivers, massage therapists—this is your crowd.

100K in net worth doesn’t happen overnight. Most in this group are in their late 30s or early 40s. If you're younger and not there yet, it might just be a matter of time. The real key here is consistency. If you earn a modest $70–75K/year and invest wisely, you can still build real wealth.

Take the story of the janitor who died with over $8 million in net worth. He didn’t earn much—but he invested consistently, lived frugally, and let compounding do its job. Even saving just $100/month from age 25 to 65 can get you to $335,000—well into upper middle class territory.

Upper Middle Class: 60th–80th Percentile

Median Net Worth: $201,800

Household Income: $100K–$150K/year

This group includes high-earning professionals—engineers, architects, accountants, psychologists. Many have advanced degrees. Education is highly valued, and so is global travel and cultural awareness.

Most own homes. Many invest in real estate or stocks. But despite the higher income, over 48% of them still live paycheck to paycheck. Why? Lifestyle creep. Higher income doesn't fix bad habits—it magnifies them.

To move up—or just stay stable—you have to manage your money well. It’s not about what you earn. It’s about what you keep and grow.

Upper Class: Top 20%

Median Net Worth: $608,900

Estimated Household Income (2025): ~$237,000/year (adjusted for inflation)

If you’re in this group, you’ve made it into the top fifth of American households. You might work in tech, finance, or healthcare. Think cardiologists, senior finance executives, CMOs, or software engineers in Silicon Valley.

This group is concentrated in high-income areas—New York, Boston, Cambridge, Silicon Valley. But here's the good news: you don’t have to live in those places or earn a six-figure salary to get here. With discipline, long-term investing, and smart money habits, it’s entirely possible.

Saving $200/month from age 25 to 65? That can also land you in this bracket.

Most in this class have:

It’s not just about earning more. It’s about putting your money to work.

The Global View

Globally, things look different. If you earn more than $50/day, you’re in the top 20% of the world.

Let that sink in.

Most Americans—and people in other developed countries like Canada, Australia, and much of Europe—are already wealthier than the vast majority of the world’s population. Even a modest income in the U.S. puts you light years ahead of what was considered wealthy just 200 years ago.

As Naval Ravikant puts it: a poor person in a first-world country today lives better than a king in 18th century France.

Final Thoughts

Wherever you are on the scale—from poverty class to upper class—you have more control than you think. Wealth is built over time, not overnight. And it’s built on behavior, not just income.

If you want to know exactly where you stand, check out two calculators I recommend:

Input your location and income. Find out where you fall. Then make a plan to move up.

That’s it for now. See you in the next one.