I’m Middle Class: 7 Investments I’m Making To Become Upper Middle Class in 2024

30/06/2024

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Many of are fighting that elusive battle to get from middle class to upper middle class. We want a comfortable nest egg and the ability to do more of the things we like. Chris T., a 35-year-old marketing manager from Chicago, is taking calculated steps to boost his net worth to the $1 million mark by the end of 2024.

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Here’s a breakdown of his investment approach.

Diversification Through Index Funds

“I’ve put 60% of my portfolio in VTI, the Vanguard Total Stock Market ETF. It tracks the CRSP US Total Market Index, giving me exposure to over 4,000 stocks for a low expense ratio,” he said.

Chris doesn’t ignore international markets.

“Another 20% goes into VXUS. It covers over 7,800 non-U.S. stocks across 48 countries. The expense ratio is higher, but it’s worth it for global diversification,” he said.

Bonds for Stability

“I’ve allocated 15% to BND, Vanguard’s Total Bond Market ETF. It follows the Bloomberg U.S. Aggregate Float Adjusted Index, which I personally love,” he shared.

This helps balance his portfolio during stock market volatility.

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High-Yield Savings and CDs

Chris keeps his emergency fund in a high-yield savings account.

“I use Ally Bank’s online savings account. It has a great APY with no minimum balance,” he said.

He’s also laddered $50,000 in CDs.

“I opened five $10,000 CDs with terms from 1 to 5 years,” he said. “I’m all about diversification — I read a lot of financial sites!”

Income-Generating Investments

“For dividend stocks, I invest in SCHD, the Schwab U.S. Dividend Equity ETF,” he shared.

Chris also researches value stocks using metrics like price-to-earnings ratio and price-to-book value.

Long-Term Perspective

One of the biggest rules of thumb Chris follows is automating his investments.

“I automatically put around $2,000 in every month,” he said. “I’m not trying to time the market. I just stick to my plan and let compound interest do its thing.”

The Bottom Line

Chris knows that going from middle class to upper middle class isn’t the easiest thing in the world.

“Honestly, I’ve read a lot about how whatever we’re born into is where we stay and that definitely seems true of my friends,” he shared. “But I don’t want to be paycheck to paycheck my entire life — I want to retire early and travel!”

Investing like this, it seems like he’s well on his way.