9 Factors Keeping You From Moving From Middle to Upper Middle Class

1. Lack of Financial Literacy

Understanding how to manage, invest, and grow your money is critical for moving from the middle to upper middle classes.

2. Unplanned Expenses

An emergency fund is crucial because medical problems and house repairs can derail financial goals and savings, making it harder to create wealth and advance.

3. Mismatch Between Jobs, Pay and Skills Needed

Another major barrier to Americans transitioning from the middle to upper middle classes is a frequent mismatch between talents and jobs.

4. Debt

Debt of all kinds is preventing Americans from rising from the middle to upper middle classes. 

5. Family Financial Obligations

It's not simply our personal debt that's holding us back. It's also, in certain cases, the debts of individuals we care for, or the debts that caregiving can cause.

6. Stagnant Wages

Inflation has now caught up to wage growth, but this has taken years, and many middle-class Americans are still playing catch-up.

7. Rising Cost of Education

Higher education costs may be regarded as even more depressing now that student loan repayments have resumed following a years-long hiatus imposed at the outbreak of the pandemic.

8. Steep Healthcare Costs

Healthcare prices are slamming Americans of all income levels, but the middle class bears the brunt of the burden.

9. Regressive Tax Policies

Tax policies that disproportionately harm middle-income individuals can likewise be an obstacle to achieving financial security.