5 Essential Changes to Elevate Your Lifestyle When You’re Earning an Upper Middle-Class Salary

Imagine you have a solid job and your paycheck says you’re middle-class. Yet, despite your income, your lifestyle feels out of sync. Bills stack up, savings vanish, and you might find yourself wondering, "Where is all my money going?"

If you’re earning well but still feel strapped for cash, you’re not alone. A recent report from Bank of America reveals that one-third of people in similar income brackets feel they live paycheck to paycheck. This highlights the disconnect many high earners face—they make more but often struggle just as much, if not more, due to high expenses.

Strategies for Financial Success

Achieving financial security isn’t just about earning a good salary; it’s about strategic spending and saving. Let’s explore key steps to get your financial life back on track.

1. Audit Your Spending

Kevin Shahnazari, CEO of FinlyWealth, sees it often: people’s spending rises with their income but lacks intention. He advises starting with a spending audit. Identify where your money really goes. Shahnazari recalls his early days of earning a six-figure salary. His lifestyle expanded with his income—dining out often and purchasing impulse items—yet he got little satisfaction from it.

After tracking his expenses for three months, he found he was spending over $2,000 a month on non-essential items. Redirecting just half of that toward investments made a big difference in his financial outlook.

2. Automate Savings

Upper-middle-class earners often fall into the “someday syndrome”—thinking they’ll save more when they earn even more. This mindset can lead to missed opportunities. Shahnazari recommends automating at least 20% of your income to savings and investments before you start spending on lifestyle choices.

He tells the story of a surgeon making over $400,000 per year who saved only about 5%. By automating 25% into her investment accounts, she built significant wealth in just three years without feeling deprived.

3. Rethink Housing and Transport Costs

Housing and transportation can take up to 50% of a person’s income, which can stifle financial growth. Shahnazari suggests keeping housing costs under 30% of your income and transport costs under 10%. During his wealth-building phase, he chose to live modestly and drive practical vehicles, allowing him to invest significantly more than his peers.

4. Manage Lifestyle Inflation

High earners need a plan for lifestyle upgrades. Shahnazari recommends a “30-day consideration period” for larger non-essential purchases. This cooling-off period helps in making intentional decisions. For example, he helped a tech exec needing a luxury apartment evaluate her expenses and cut back on subscriptions. It was a win-win—she upgraded her living situation while improving her financial position.

5. Surround Yourself with the Right People

Often, financial anxiety stems from comparing ourselves to peers who put wealth on display. Shahnazari encourages finding circles that value financial wisdom. Joining investment clubs and networking with like-minded individuals can shift your focus to long-term wealth creation instead of short-lived expenditures.

Conclusion

The difference between a high salary and financial satisfaction lies in how you manage your spending. When you align your expenses with genuine priorities, you can enjoy a fulfilling lifestyle while also building a solid financial future.

For further insights, check out the full report by Bank of America here.

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