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A lot of people think the U.S. middle class is shrinking. But as of 2022, a good 52% of Americans lived in a middle-class household, says Pew Research Center. Meanwhile, 28% of Americans are part of lower-income households, and only 19% are considered upper class.

If you’re wondering whether you’re upper, middle, or lower class, the reality is that it depends on not just your income but your household size and where you live. A $50,000 income goes a lot further in a metro area like Cleveland than it does in New York City or Los Angeles.

However, on a national scale, as of 2022, middle-income households had incomes ranging from

$56,600 to $169,800. This means that lower-income households had incomes below $56,600, and upper class households had incomes above $169,800.

You may be curious to know where you stand in the context of upper, middle, or lower class. But the reality is that it almost doesn’t matter. What matters more is how you’re managing your money and how comfortable you feel financially. And if you’re looking to improve your financial picture, here are some key steps to take.

1. Get savvier at living below your means

The lower your income, the harder it can be to not spend all of it. But if you want to get to a better place financially, it’s important to live below your means so you can save the difference.

A good way to achieve that goal is to set up a budget that allows you to prioritize your essential expenses and come up with ways to allocate funds to your different goals. Click here for a list of the best budgeting apps so you can get started.

Of course, if you don’t want to use an app, a good old-fashioned spreadsheet works as well. You could even write your budget on the back of an envelope if that works for you. The point is to have a sense of where your money is going and make sure funds are being allocated toward your most important priorities.

2. Boost your job skills

Growing your job skills could be your ticket to a higher salary. But that doesn’t have to mean pursuing a new degree (and taking on the expense that comes with it).

A lot of companies have mentorship programs that allow employees to learn from their superiors and peers. If your employer doesn’t offer this benefit, ask for it. Or you could approach someone in your organization you feel you can learn from and ask for their guidance.

You can also look online to see what free courses are available that may be useful to you. LinkedIn, for example, offers a number of options. And don’t hesitate to contact your state’s labor department to see what free career development resources are available to you.

3. Invest in assets that can make you richer

Your initial financial goal should be to build an emergency fund with enough money to cover three to six months of essential bills. From there, aim to invest in assets that can help you grow your wealth at a much faster rate than a savings account.

Stocks are a good bet because over the past 50 years, the market has rewarded investors with an average annual 10% return. This means if you were to invest just $1,000 today, at that same annual return, it could be worth over $45,000 in 40 years. Check out this list of the best brokerage accounts so you can start investing your money as soon as possible.

There’s nothing wrong with trying to see where you stand in terms of being upper, middle, or lower class. But rather than focus on a specific tier, a better use of your time and mental energy is to find ways to better yourself financially on a whole.

The steps above are a great starting point. But also think about your top financial goals and how to achieve them. Those could include buying a house or paying for your children’s education. And if you want help meeting those goals, don’t hesitate to find a financial advisor to work with. A professional could help you get on the right path, regardless of your income or level of wealth.

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