8 Ways To Tell If You’re Destined To Stay Permanently in the Middle Class
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Cindy Lamothe
6 min read
Ever wonder whether you’re destined for riches? Or whether you’ll forever remain as part of the middle class? It turns out there are key signs to help you know which group you’ll fall into — and how to take the right steps today to avoid the latter.
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“One of the key differences between those who stay in the middle class and those who become rich is how they think about money,” said Ryan Chaw, real estate investor and founder of Newbie Real Estate Investing.
According to experts, it all comes down to mindset. In other words: how you think ultimately determines which socioeconomic class you’ll end up belonging to.
People in the middle class tend to exchange their time for money, Chaw said.
“Generally, they work salaried jobs until their retirement,” he said. “On the other hand, the wealthy think of money as a tool they can use to have more control over their life. Instead of exchanging their time for money, they find ways to earn money even when they’re not actively working. And that’s the mindset shift you need to become rich.
“As a seven-figure real estate investor, I’ve followed this advice myself,” Chaw added. “Thanks to passive rental income, I’m not tied down to a 9 to-5 or a particular salary.”
Ultimately, he said, if you want to leave the middle class, you need to find ways to make money without having to work all the time.
One indicator that a person might stay in the “middle class” permanently, according to Zachary Jarvinen, vice president at Exact Payments, is a “living for today” mindset where future financial planning takes a backseat to immediate gratification.
“People may find themselves trapped in comfort,” he said, “regularly upgrading lifestyles to match current income, rather than investing or saving the surplus.”
Jarvinen said this is often accompanied by a lack of financial education and the assumption that a high income equates to wealth, without considering asset building and liabilities.
“It’s absolutely possible to shift gears and escape this cycle,” he said. “You can start by prioritizing financial literacy and setting long-term goals. Start by shifting your perspective of money not just as a means for consumption but as a tool for investment and growth.”
This means cultivating a mindset of delayed gratification, and redirecting spending toward assets that appreciate over time instead of depreciating.
“Breaking free from the paycheck-to-paycheck loop can be catalyzed by creating and adhering to a budget, aggressively paying down debt and exploring additional income streams,” he added. “The path to wealth is often a marathon, not a sprint, and small, consistent changes in habits and mindset can result in substantial financial transformation over time.”
“When I see people spending every dime they make without saving, it’s like putting a roadblock on the highway to financial growth,” said Rhett Stubbendeck, finance and insurance expert at Leverage Planning.
“I’ve seen that it’s not just about saving money; it’s about understanding the story your spending habits tell. Here [in my work], I’ve seen clients have lightbulb moments when they realize that small tweaks in their spending can make a huge difference.”
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You’re Playing It Too Safe
“I understand that taking risks can be scary,” Stubbendeck said. “But playing it too safe might mean missing out on opportunities.
“We’ve seen clients take those calculated risks — starting a side hustle or going for that job they thought was a bit out of reach — and nine out of 10 times it has been extremely rewarding.”
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You’re Not Proactive With Your Finances
Experts agree that if you are focused only on the here and now with your finances — rather than also focusing on the future and building your wealth — you probably won’t get out of the middle class.
Carter Seuthe, CEO of Credit Summit, said getting above the middle class requires investing and strategic money moves — not just paying your current bills.
“Being more financially proactive will help get you there.”
One significant indicator of remaining in the middle class, according to Dennis Shirshikov, head of growth at Awning, is a fixed mindset toward income and investments.
“People often believe their earnings are capped by their current job or that investing is too risky,” he explained. “This mindset limits exploring diverse income streams or investment opportunities.”
David Brillant, tax, trust and estate lawyer at Brillant Law, said one common characteristic he has observed is a reluctance or fear of investing due to perceived risk.
He said this mindset can be attributed to a lack of financial education or the misconception that investing is only for the wealthy.
“Breaking this habit involves starting small with investments, seeking financial education and gradually building a diversified portfolio to mitigate risk.”
Shirshikov agrees. “For example, real estate, often seen as an exclusive playing field for the affluent, can be accessible through informed strategies, such as REITs or crowdfunding platforms, offering both growth and income potential to those willing to explore beyond conventional savings accounts.”
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You’re Focused on Saving Over Investing
Another telltale sign experts say you’ll remain in the middle class is a focus on saving rather than investing.
“While saving is crucial for financial stability, it’s the investment that builds wealth over time,” Shirshikov said. “Consider the anecdote of a colleague who, despite a modest income, started investing small amounts in index funds early in his career. Over the years, this disciplined approach not only built a significant nest egg but also ingrained a growth mindset towards personal finance.”
Similarly, Brillant noted that many people often stay in the safety of savings accounts with low interest, rather than exploring investment opportunities that, over time, could significantly increase their wealth.
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You’re Not Investing In Financial Literacy
To break out of these middle-class financial patterns, experts say education is key.
Shirshikov said, “Understanding the basics of investment, the power of compound interest and the importance of financial planning can transform one’s financial trajectory.”
Additionally, he said, cultivating a mindset of financial growth and resilience, rather than one of limitation, can open doors to wealth-building opportunities previously considered out of reach.
