Here are 5 signs you’ve finally made it to the American ‘upper class’— and how to keep soaring higher in 2025

1. You have assets aside from just a savings account

It’s essential to always have money for emergencies in a savings account. In fact, at a minimum, you should aim for enough savings to cover three months of essential expenses. That could get you through a period of unemployment or pay for an unexpected home repair, among other things.

New York Life's 2024 Wealth Watch survey found that Americans with an emergency fund have an average of $29,741.87 tucked away. But if you have assets outside of a savings account or emergency fund, it’s a sign that you may be part of the upper class. Those assets could include a well-funded IRA, a portfolio of stocks or real estate holdings.

And the good news is that having these assets makes you more likely to stay in the upper class. If your portfolio is worth $50,000 today but grows at an annual 7% return over the next 25 years, a bit below the stock market’s average, you’d end up with over $271,000. And if you keep funding your portfolio, you can grow your wealth even more.

Similarly, if you directly invest in real estate and purchase a property, you can charge rent to cover the mortgage and homeownership costs. From there, your property might gain a lot of value through the years, adding to your net worth.

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2. You've got wiggle room in your budget for extras

Many Americans must follow a strict budget to avoid debt. But if you have room in your budget for extras beyond your essential bills, it’s a sign that you’re in great shape financially.

That said, you don’t want to spend your money mindlessly just because you have it. Instead, ensure the extras you’re paying for are worthwhile.

It’s not worth spending $80 a month on a gym membership you barely use or $60 a month on a subscription box you mostly toss out. That’s money you could save or invest to grow even more wealth.

3. You're looking at upgrading your home and car

Living within your means is an excellent way to increase your net worth. And keeping big expenses like your home and car as low as possible allows you to carve out room for savings. But if you’re at a point where you’re ready to upgrade your home and car, and you can do so without limiting your ability to keep saving, then it’s a sign you’ve reached a certain level of wealth.

That said, you don’t want to go overboard on housing and vehicle expenses. Aim to keep housing costs (including mortgage payments, property taxes, home insurance and other predictable expenses) to 30% of your income or less. And aim to spend no more than 15% on transportation, including car payments and auto insurance. If you overspend in these areas, you risk falling victim to lifestyle creep, which could stunt your savings efforts.

Kiss your credit card debt goodbye

Millions of Americans are struggling to crawl out of debt in the face of record-high interest rates. A personal loan offers lower interest rates and fixed payments, making it a smart choice to consolidate high-interest credit card debt. It helps save money, simplifies payments, and accelerates debt payoff. Credible is a free online service that shows you the best lending options to pay off your credit card debt fast — and save a ton in interest.

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4. You're buying back more of your time

When there’s not enough money to go around, doing your own cooking, house cleaning and home maintenance makes sense. The money you’d pay someone else to do these tasks is money you might need to save.

But if you’re in a place where you can afford to buy back more of your time by paying for meal kits or takeout, a housekeeper, a lawn service and a handyman service when you need it, then it’s a sign that you’ve reached upper class territory. And frankly, you shouldn’t feel guilty about throwing money at these tasks if you can swing that while continuing to save and invest.

According to Harvard Business Review, people who buy time tend to be happier. So, there’s nothing wrong with paying for services that allow you to spend your free time pursuing hobbies, bonding with loved ones or simply relaxing after a hard day of work.

5. You don't worry about money nearly as much as you once did

It's unfortunate that 46% of Americans say concerns about their finances impact their lives daily or weekly, according to a 2024 report by Ally Financial and mental health company Calm. And 54% of Americans say that just thinking about money makes them feel worried.

Now, even very wealthy people sometimes worry about not having enough money. But if you’re not nearly as concerned about your financial situation as you once were, it might be a sign that you’ve made it to the upper class.

And from here on out, all you need to do is maintain the good habits that got you to where you are. These include not spending your entire paycheck each month, avoiding debt, and continuing to save and invest so you can continue increasing your net worth year after year.