Do upper middle-class people spend money on luxury items? Do they own new cars and eat out nightly? Many upper middle-class individuals originated from lower middle-class and probably used frugal means to move up in the economic world.

There are several habits that can help you move from lower middle-class to upper middle-class. Some take planning and most take discipline.

Live Below Your Means

Never spend more than your total earnings. When your income increases, keep a simple lifestyle. Don’t fall victim to “lifestyle creep.”

According to Fidelity, lifestyle creep, also known as lifestyle inflation, occurs when your spending rises with your income while your savings decline. This leads to setbacks in future financial goals.

Live below your income and reserve the remaining amount to save or invest.

Don’t Buy Takeout or Eat Out

Eating out or ordering delivery from DoorDash is expensive. The fees associated with DoorDash could double your meal’s cost. And going to a restaurant costs you not only dinner but the tip and possibly parking.

The health costs are also high, since you may be eating rich or fried foods. This is especially true if you have a taste for fast food.

Instead, choose to cook at home with healthy foods. You’ll save money and possibly slim your waistline.

Don’t Pay Full Price

Always negotiate when you can. That also goes for rent. You may not receive the price you want, but it’s always worth a try if there are a number of apartments available or it’s a private owner.

Try not to pay retail prices. Watch for sales or use coupons. Even online retailers have promo codes that can save you money.

Buy Older Cars With Cash

Buying a used car with cash may make more sense than buying a new one. Keep in mind that a new car loses more than 10 percent of its value the first month you drive it off the lot. And according to Carfax, that percentage continues to drop the longer you drive your car.

There are financial advantages to purchasing a used car with cash. You’ll avoid auto loans, which means no interest payments. Older cars usually cost less to insure.

Buying a used car may force you to separate transportation from identity. But keep in mind, if you want to move up the economic ladder, don’t try to keep up with the Joneses.

Don’t Use Credit Emotionally

You don’t want to use credit to buy things that make you feel successful. Avoid charging expensive dinners, designer clothes, or the newest gadget.

Use credit cards as tools for convenience and to build credit history. Purchases you would make anyway, like groceries, can be charged and then paid off every month. That way, you can earn points without going into debt. However, this requires discipline.

There should be a difference between wanting something and actually buying it. If you know you'll have to pay for it at the end of the month, you may think twice before buying it.

The financial difference with using credit cards wisely can save you thousands of dollars in interest.

Track Every Dollar

If you want to move up the financial ladder, you’ll want to be strict about where your money goes. You don’t need to be stressed or anxious. Rather, you’ll want to be data-driven.

Use a budget and review weekly spending. Know exactly how much money you spend on groceries and whether that’s higher or lower than usual.

Many people check their bank account balances but don’t know where their money went. But if you’re tracking your money, you can spot patterns and cut waste. You can also redirect money toward investments or opportunities.

Completely Automate Finances

People who move up economically don’t rely on memory or willpower for financial decisions. Everything is automated.

Transfers to savings happen automatically. The same thing goes for retirement contributions. Since they’re automated, they are often left to grow.

Automation runs without requiring ongoing decisions or discipline.

Invest in Financial Knowledge

It’s crucial to understand the basics of personal finance, taxes, investments, and retirement planning. It’s the only way to make informed decisions.

There are many books you can read or online courses you can take to enhance your financial literacy.

Practice Conscious Consumption

Conscious consumption is when you are aware of your purchases. You look for long-term value and utility of an item before purchasing it. Always choose quality over quantity. And although you don’t want to pay full price, resist the allure of deals and discounts that encourage unnecessary spending.

In other words, don’t buy it just because it’s “on sale” if you don’t need it. This frugal habit saves money and promotes a sustainable lifestyle.

Lifestyle, Knowledge, and Automation Help the Lower Middle-Class

Avoiding lifestyle creep can help you save. Automate your finances so you don’t need to rely on discipline and memory for everything.

And probably most importantly, educate yourself. According to the World Economic Forum, 50 percent of Americans are financially literate. Financial knowledge could ultimately help you achieve your goals.

The Epoch Times copyright © 2025. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.