5 Changes to Make If Your Upper-Middle-Class Salary Isn't Matching Your Lifestyle

In today's rapidly changing economy, it's not uncommon to find yourself in a situation where your upper-middle-class salary doesn't seem to match your lifestyle. Bills pile up, savings disappear, and you're left wondering where all that money is going. If you're feeling this way, you're not alone. According to a Bank of America survey, roughly one-third of people strongly agree that they are living paycheck to paycheck, even with a solid income. So, what can you do to change this situation? Here are five strategic changes to make if your great income no longer feels enough.



1. Set Up Strategic Direction for Your Wealth

Many high earners struggle because their spending increases proportionally with income but lacks intentional allocation. Kevin Shahnazari, founder and CEO of FinlyWealth, notes that clients who earn $200,000 plus annually often feel financially constrained because their spending expands to fill available resources without building wealth. The solution starts with conducting a spending audit to identify exactly where your money goes, then realigning these expenditures with your actual priorities and values.

When Shahnazari first reached a six-figure salary, he fell into this exact trap. His spending unconsciously expanded to include nicer restaurants, premium subscriptions, and impulse purchases. However, his financial satisfaction didn’t improve. After tracking every dollar for three months, he discovered he was spending over $2,000 monthly on conveniences and status purchases that didn’t truly enhance his quality of life. Redirecting just half of that amount toward investments completely transformed his financial trajectory while maintaining the lifestyle elements he genuinely valued.

2. Set Clear Financial Boundaries and Automate Priority Goals

Upper-middle-class earners often suffer from what Shahnazari calls “someday syndrome” — believing they’ll start serious saving and investing once they reach some arbitrary higher income threshold. This mindset prevents wealth accumulation regardless of income level. To counteract this, start by automating at least 20% of your income toward investments and savings before lifestyle spending, essentially putting your financial priorities first in line.

Marcos Cabello, a writer at Bankrate, makes around $170,000 a year when combining finances with his fiancee. Unfortunately, that doesn’t go as far as he’d like in pricey Boston. Cabello and his fiancee consider themselves middle class, but in a city where homes are typically over $1 million, traditional middle-class benchmarks, like homeownership and taking yearly vacations, are still distant goals. That’s not only true in Boston. Cabello and other families across the country may bring in high incomes, yet they still haven’t been able to achieve a “middle-class lifestyle.”

3. Understand the Difference Between Middle Income and Middle Class

Part of the confusion is that “middle class” is different from “middle income.” The Pew Research Center defines “middle income” as a household that makes two-thirds to double the national median income after adjusting for household size. That works out to $56,600 to $169,800 annually for a family of three in 2022 dollars, the latest data available. Conversely, “middle class” is closer to a lifestyle label, although the two are often used interchangeably. Although it varies from person to person, generally, the term “middle class” brings to mind a family who owns a home, doesn’t live paycheck-to-paycheck, has enough money for discretionary spending and is able to save for the future.

This is where it gets confusing — that rosy picture isn’t the reality for many middle-income people today. Over the last year, Bankrate’s surveys of Americans have found that, while middle-income earners are typically more financially comfortable than lower-income people, many still don’t meet those traditional middle-class benchmarks. A sizeable percentage of Americans who make between $50,000 and $79,999 per year can’t afford a house, live paycheck-to-paycheck or can’t afford a summer vacation.

4. Conduct a Spending Audit

Conducting a spending audit is a crucial step in realigning your spending habits to better match your financial priorities and values. This process involves tracking every dollar spent for a specific period, such as three months, to identify exactly where the money goes. By doing this, you can identify non-essential expenditures that do not align with your values or priorities. For instance, Shahnazari found that redirecting $1,000 monthly toward investments had a profound impact on his financial well-being. This intentional allocation of funds can lead to wealth accumulation and financial security, even for high earners who may feel financially constrained due to their spending habits.

5. Invest in High-Yield Savings Offers

One of the best ways to ensure that your money is working for you is to invest in high-yield savings offers. These offers provide a higher return on your savings compared to traditional savings accounts, allowing you to grow your wealth over time. By taking advantage of these offers, you can ensure that your money is not just sitting idle but is actively contributing to your financial goals.

In conclusion, if your upper-middle-class salary isn't matching your lifestyle, it's time to make some strategic changes. By setting up a strategic direction for your wealth, setting clear financial boundaries, understanding the difference between middle income and middle class, conducting a spending audit, and investing in high-yield savings offers, you can ensure that your money is working for you and that your lifestyle matches your income.