Originally Posted by
MysteriousWays
Middle class means that you can afford to get basic essentials (living frugally) without living paycheck to paycheck. Things like college for children will still be prohibitive in many cases though, at least in the U.S. (not so much true for many other countries). Graduate degrees seldom take people from middle to upper class, but from middle class to perhaps slightly higher in the middle class. The cash advantage for having a graduate degree is just not that large in many cases. Most, but not all, people in the U.S. would need college degrees to viably be in the middle class these days. But this would typically be families who can afford to live in a nice area, have two cars, mostly not luxurious items, but perhaps a few luxurious "things."
Upper middle class is what I typically think of as modern "professionals" where one still has to rely on salary from a job, etc. to get by. Folks in this income strata typically live in cities in the U.S. in their 20s and in their 30s, move to suburbia to pursue better public school opportunities for their children. Types of jobs fitting in this: doctors (some are upper class, but most are upper middle IMO), "better off" attorneys, dentists, perhaps school principals, and perhaps engineers with manager roles in a company. So you'd have to work full time, but would likely be able to afford to help your children to go to universities, etc., could help with major health care expenses your children might have without it hurting too, too much probably.
True upper class is when you can get by living primarily on passive and/or investment income, and where one would not need to work to survive. Most folks in these brackets would primarily earn money from rental properties and/or investments, therefore paying the capital gains tax rate in the U.S. generally. So in practice, it is typically the upper middle class, and not the upper, by my definition, that pay the highest taxes in the U.S.
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