Our lifestyle tells people a lot – if they pay attention.
One might think that the difference between the middle class and the upper middle class is not that great, but there are some important differences between the two classes.
Learn more: What the upper middle class earns in different US cities
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“As someone who has worked with upper-middle-class clients for decades, I’ve noticed some telltale signs of their financial situation,” said Dalton Tigner, insurance expert and partner at Tigner Insurance & Associates. “They don’t think twice about expensive hobbies and vacation homes. Owning vacation properties both domestically and internationally, taking multiple luxury vacations a year, and expensive hobbies like boating or collecting art are commonplace.”
Below are other obvious signs that you are upper middle class.
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Education and professional focus
According to Dayten Rynsburger, financial expert and CRO of Niche Capital CO., the upper middle class tends to value higher education for themselves and their children.
“Careers can include professional or managerial roles with an emphasis on long-term growth and stability,” Rynsburger said.
Trending now: How I went from the middle class to the upper middle class
Tigner agreed, adding that it is equally important to set up trusts and estate plans to pass wealth to the next generation without overwhelming taxes.
“Education and experiences for their children are their top priority,” said Tigner. “They pay full tuition at prestigious private schools and fully fund their studies at top universities.”
Home ownership in sought-after areas
Home ownership is also widespread, generally in areas with good schools and important public amenities.
“Proper maintenance of the houses is ensured, and stylish decoration ensures greater taste and better social standing,” said Rynsburger.
Chris Hoffman, real estate agent and owner of Lehigh Valley Just Listed, agreed.
“Upper middle class homeowners place a high priority on maintaining and upgrading their homes,” explained Hoffman. “They know that regular investments in maintaining and improving their property are critical, as it not only preserves the value of their investment, but also reflects their status and attention to detail.”
Homeowners often hire professional contractors to perform maintenance work such as roof repairs, kitchen and bathroom renovations, and energy upgrades. This commitment to home maintenance and upgrades is a hallmark of the upper-middle-class lifestyle, where the quality and condition of the home is viewed as a direct reflection of financial means and attention to detail.
“They can also maintain their property on a regular basis by hiring dedicated landscapers to ensure their gardens and outdoor spaces remain meticulously maintained and visually appealing,” Hoffman said. “By continually investing in their homes, these homeowners can maintain a high standard of living and a sense of pride in their property, further cementing their position within the upper middle class.”
Travel and experiences
“They prefer to spend their money on traveling abroad or attending cultural events rather than accumulating it over time,” Rynsburger said.
This means access to money that has no other use than for pleasure.
Lauryn Grayes, founder of Wealth Gems Financial, found that upper-middle-class people value experiences such as frequent international travel, club memberships and luxurious hobbies.
“When I advise clients on financing strategies, many enjoy golf, boating or collecting art. Several luxury vacations a year are common,” said Grayes.
Investing in personal development
According to Rynsburger, the upper middle class is more inclined to invest in lifelong learning, such as through courses, workshops or attending conferences. Self-improvement is an important factor in this.
Brand preferences
“They may not be flashy, but they tend to choose high-end fashion, car and technology brands as status symbols,” Rynsburger said.
Diverse investments
Another indicator of the upper middle class is that they often invest beyond a 401(k) plan.
“Like stocks, real estate or alternative assets. Managing diversified portfolios requires wealth and financial sophistication,” Grayes said.
Charitable donations are important
“Giving $100,000 or more per year to causes they care about is common,” Tigner said. “Having enough wealth to live comfortably and also make a meaningful difference is a hallmark of the upper middle class.”
Grayes agreed that this was an important sign.
“People who have sufficient means also care about giving back,” Grayes said. “I’ve created funding strategies for clients who donate over $100,000 annually to charities and causes they believe in. When someone has significant disposable income, lives comfortably, and saves for the future at the same time, it shows.”
She explained that true wealth allows one to pursue one’s passions, support communities, and sustain that lifestyle across generations.
“The upper middle class seems to be aware of the fragility and transience of life and therefore lives remarkably well while they can.”
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This article originally appeared on GOBankingRates.com: 7 Obvious Signs That Tell Others You’re Upper Middle Class
