When you see someone cruising around in a shiny new BMW, it’s easy to assume they’re doing well financially. Maybe even upper middle class. But that assumption doesn’t always hold up, especially when you dig into what actually defines upper-middle-class life.
A recent Reddit thread on r/UpperMiddleFinance sparked a lively debate around what defines the upper middle class, instead of the middle class or upper class. One person summed up the stereotype perfectly. “Upper middle class is a BMW instead of a Toyota,” they said. “Day to day life is the same. You can just afford the ‘nice’ version of everything.” But dozens of replies pushed back on that idea.
Don’t Miss:
“Just saying upper middle class doesn’t necessarily mean you buy the nice version of everything,” one commenter wrote. “Many people only become upper middle class because they don’t spend money on stuff like BMWs,” another added.
In fact, many Redditors agreed that people who are truly upper-middle-class often avoid flashy spending. Instead, they max out their retirement accounts, pay off debt, and invest consistently.
That lines up with what personal finance expert Dave Ramsey has said for years. According to Ramsey, the majority of millionaires don’t drive expensive cars. They’re more likely to own vehicles from brands like Ford, Honda or Toyota.
Trending: Americans With a Financial Plan Can 4X Their Wealth — Get Your Personalized Plan from a CFP Pro
Interestingly, many shared that wealthier families often drive modest cars not out of necessity but because they prioritize value. “You couldn’t pay me enough to give up my Toyota for a BMW,” one person wrote. Others mentioned that high-income professionals like doctors and business owners still drive their 10-year-old Hondas and Subarus.
And then there’s the debt factor. Another Redditor pointed out that many people leasing luxury vehicles or taking expensive vacations are “finances built on a rickety house of cards that wouldn’t survive losing a job.”
What defines upper-middle-class living, according to the Reddit thread, isn’t brand names or luxury. It’s margin. The ability to choose, to work less if needed, to invest in the future, to help your kids financially, or to walk away from a high-paying job that no longer brings joy.
See Also: It’s no wonder Jeff Bezos holds over $250 million in art — this alternative asset has outpaced the S&P 500 since 1995, delivering an average annual return of 11.4%. Here’s how everyday investors are getting started.
For people trying to figure out where they stand or how to build that kind of stability, working with a financial planner can help. Services like WiserAdvisor match individuals with vetted financial advisors who can guide them through investment planning, retirement strategy, and smart long-term decisions–without chasing lifestyle markers that don’t actually matter.
