There are financial moves that could help you change the direction of your entire life. Even though certain choices may seem challenging or risky, they can pay off tremendously in the future.
If you want to upgrade your finances, it might be time to consider doing things a bit differently and explore some new strategies. Take a look at the 5 money moves that can help you jump up to upper middle class.
Switch Careers
“The best way to move from lower-middle to upper-middle class is to identify and train for the roles within your industry that have great growth potential and align with emerging trends,” said Nathan Brunner, CEO of Salarship.
He continued, “Early entrants who take advantage of trending job markets can rise quickly to managerial or more senior positions.”
We can’t deny the importance of increasing your income if you want to change your lifestyle. There are only so many frugal living strategies that you can embrace before you exhaust yourself. When you focus on making more money, you have endless possibilities.
The harsh reality could be that you’re currently on a career trajectory that won’t allow you to upgrade your situation until you change paths.
Brunner explained, “For example, administrative assistants can consider earning certification for these new Human Resources Information Systems, which can open doors to high-paying roles in human resources administration, such as HR Coordinator positions.”
This then leads us to the next point.
Take Your Career Seriously
Attorney, personal finance and debt expert and founder of Erika.com, Erika Kullberg said, “These days, we are hearing a lot of buzz around quiet quitting, and there is no shortage of tips on how to coast at work while working remotely.”
While Kullberg admits it might be tempting to lean out, she said, “you really do need to lean into your career if you want to keep increasing your income enough to move up into the upper middle class. The more money you earn, the more you can afford to put into retirement and the higher your employer match will be. So, earning more now impacts your current financial status and your future one.”
If you want to build wealth and move up to the upper middle class, you’ll have to take your career seriously to increase your income consistently. As you make more money, you open yourself up to new opportunities. If you don’t take your career seriously, you’ll miss chances to make more money and expand your network.
Create a Thoughtful Budget
Kullberg also stresses the importance of creating a budget so that you have a financial game plan for building wealth and getting ahead.
“It’s time to rethink your fixed expenses if you want to make major financial progress,” she said. “You need to put extra debt payments and savings goals into your monthly budget and make those a priority to cover before you start planning out your discretionary spending, like entertainment, clothing, and dining out.”
You won’t be able to reach the next level of your finances if you don’t make a plan to get there. This is why it’s critical that you sit down to build a budget with clear financial goals so that you know what the next step is at all times.
Learn To Avoid Spending Temptations
“Speaking of budgets, even if you have room for unnecessary purchases, you need to learn how to scale back on them,” advised Kullberg. “There are more spending temptations today than ever before, and it’s so easy to make impulse purchases now that you can do so in-person or online.”
You won’t be able to build wealth if you’re constantly spending money frivolously. While there are occasions where it makes sense to treat yourself, you have to get into the habit of making saving a priority.
Kullberg continued, “Train yourself to pause before making a purchase to evaluate if it is something you really need. If you can walk away for a day (or even better, follow my 7-day rule), you probably won’t ever make the purchase and can put that money to better use, like paying down debt or growing your savings.”
Delaying gratification will help you level up your finances since you won’t sacrifice your long-term financial situation for short-term indulgences. It won’t always be easy to put off a purchase, but it will be worth it.
Keep Saving and Investing Your Money
While some people will look for shortcuts, the reality is that you sometimes have to focus on consistency and patience as you build wealth.
If you want to bump yourself up to the upper middle class, you must accept that getting there will take some time. As you try to get there, the best thing to do is to continually save money from your paycheck to always invest in your future.
You’ll also want to increase your savings as you increase your income by taking your career seriously. As your savings grow, you can look into investments like real estate, further education and index funds to ensure further growth.
Closing Thoughts
“There is no one money move that will help you leap from lower middle class to upper middle class,” said Kullberg.
Instead, she suggested, “You can think about your financial growth like a puzzle. You need to put the right pieces together to make the whole picture come together.”
As tempting as it is to look for quick fixes, nothing beats patience and consistency as you work towards upgrading yourself to the upper middle class.