Here's What It Really Means to Be 'Middle Class' Right Now
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Ask 10 people what it means to be "middle class," and you'll get 10 different answers.
To some people, it means "comfortable but not rich." And yet many Americans who consider themselves middle-class are struggling to keep up with rising expenses.
Let's break it down by income -- and then by some numbers that matter even more.
The "middle class" by income
The median household income in the U.S. is about $84,000, according to 2024 data from the U.S. Census Bureau.
The average is a lot higher at $121,000 -- but that's skewed by the highest earners. The median gives you a better idea of how much money an "ordinary" American earns.
Why income doesn't mean all that much
Your income alone can't tell you whether you're lower, upper, or middle class.
The median income of $84,000 might seem like a lot or very little, depending on:
- Your age. Americans in their 40s and 50s tend to earn more than both younger workers and retirees, for example.
- Where you live. Ex: Massachusetts' median income is about twice that of Mississippi.
- How many people (and wage earners) are in your household. Ex: Median income is about $72,000 for single-earner households and $142,000 for households with two wage earners.
- Your debts and expenses. These can play a bigger role in your financial stability than your income.
Here's a better way to measure where you stand financially.
The "middle class" by net worth
Your net worth paints a clearer picture of your financial health. Put simply, your net worth is the value of everything you own minus everything you owe.
So add up your assets, like…
- Homes
- Other property, such as vehicles
- Savings
- Investments
Then subtract your debts, such as…
- Mortgages
- Student loans
- Credit card balances
The result is your net worth.
Why net worth matters more
Let's compare two people.
- Bob earns $75,000 a year, has $100,000 in savings and investments, and has no debt
- Tom earns $150,000 per year, has $5,000 in savings, and owes $100,000 in student loans and credit card debt
Bob earns half as much as Tom -- yet Bob has a higher net worth and is much more financially secure.
A high net worth can mean…
- You can handle a job loss or other financial setback
- You're on track for retirement
- You can make big purchases without going into debt
And that's what real financial stability looks like.
Median net worth by age
| Age | Median Net Worth |
|---|---|
| Under 35 | $39,000 |
| 35-44 | $135,600 |
| 45-54 | $247,200 |
| 55-64 | $364,500 |
| 65-74 | $409,900 |
| 75+ | $335,600 |
Just like your income, your net worth doesn't tell the whole story. But if your net worth is well below the median, then you may want to buckle down on paying off debt and saving for the future.
Focus on what matters -- not the labels
Instead of worrying about how you compare to other people, focus on things like…
Saving some money every month
Whether it's $50 or $1,000 per month, it's crucial to set some money aside for the future. You especially want to build up an emergency fund with three to six months' worth of expenses, then invest some money for retirement.
If you don't already have a high-yield savings account, then open one ASAP. These accounts are perfect for your emergency fund. Some pay around 4.00% APY, compared to 0.01% at many big banks -- that's hundreds of times more interest.
Click here to see our list of the best high-yield savings accounts today.
Paying off high-interest debt
High-interest debt, like credit card debt, can seriously hold you back.
If you could use some help paying off high-interest debt, then look into a balance transfer card. These cards give you up to two years to pay off debt at 0% intro APR. If you make all your payments on time and avoid more debt, a balance transfer card could save you a lot of money in interest charges.
Click here to see our list of the best balance transfer cards today.
Living within your means
"Lifestyle creep" can leave anyone cash-strapped, no matter their income. Millionaires go bankrupt all the time, because the more we earn, the more we want to spend.
As your income goes up, fight the urge to splurge. It's OK to reward yourself sometimes, but first, make sure you increase the amount you save with every paycheck.
That's called paying yourself first, and it's how financial dreams become reality -- no matter what "class" you're in.
Our Research Expert
James McClenathen is a full-time Managing Editor and Personal Finance Writer at Motley Fool Money, overseeing the production and quality of editorial content while also writing about credit cards, investing, and everyday money management. He has worked at The Motley Fool since 2012 and brings extensive experience as an editor, reporter, and finance expert. A graduate of the University of Michigan, James has spent more than a decade of his career helping readers make smarter financial decisions.
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