10 Signs Someone is Middle Class and Not Rich

Being middle class might feel like a financial sweet spot — you're not struggling, but you're not swimming in luxury. However, many Americans who consider themselves solidly middle class quietly face money problems that could threaten financial stability without even realizing it.

From frivolous spending to neglecting retirement savings, these lifestyle tendencies could actually indicate that things are as good as they seem. If you've ever thought "I'm doing okay" while ignoring your bank account balance, you're not alone. The truth is, financial insecurity doesn't always look like missed bills or eviction notices.

Here are 10 signs that might mean your financial footing isn't as solid as you think — and what to do about it.

Living paycheck to paycheck is sometimes unavoidable (for a short time), but if you struggle to make ends meet each month, even with substantial income, it's a sign that you aren't building true wealth.

Those who are truly wealthy see their income as money to save, invest, and spend. And those who are just middle-class members might be tempted to blow their paycheck right after it hits their account.

New debts might seem like a means to an end. Maybe you need new furniture or a new car, and you think it's worth it to go into debt for these items. But a sign of true wealth is refraining from these unaffordable purchases, or saving up and paying for them in cash.

Middle-class members are often found signing for new debt, and it holds them back from the benefits of building long-term wealth.

Side hustles are all the rage right now, and for good reason. With inflation on the rise and interest rates remaining high, Americans need every penny they can get from their income.

Setting up multiple streams of income (whether passive or active) can help middle-class members take it to the next level to keep on top of expenses while building wealth.

Understandably, investing your money can seem daunting. After all, the stock market rises and falls quite often. But this fear can hold you back from becoming rich. The investing world is full of nuances and information, but don't let that hold you back from building wealth.

If you don't start making your money work for you, you'll miss out on all the potential investment gains that could deliver some financial stability. Members of the middle class might let the anxiety of investing stop them, but rich people are certainly not afraid to put their funds to work.

Plus, they understand that investing is a long game full of twists and turns, but that shouldn't hold you back.

Spending can add up. Maybe you spend $15 a week on coffee. That could add up to $780 a year, which doesn't seem like much, but it's money you could be saving or investing.

If you're not aware of your spending habits, you might never realize that you're dropping tons of money on certain expenses. Rich people take regular inventory of their spending, saving, and investing habits to hone all three and maximize their wealth.

An emergency fund might seem like the least of your worries if you're living paycheck to paycheck, but it's a crucial step in becoming financially stable. Most experts recommend that an emergency fund should hold three to six months' worth of your total living expenses.

Those in the middle class usually don't prioritize this fund, but the wealthy won't be found without a buffer like this. An emergency fund could save you from financial disaster in the case of job loss, unexpected hospital bills, or the like.

Vacation time and getaways are an important part of a well-rounded life, but they can hold you back from building wealth if you're not careful. Middle-class people might be tempted to blow their savings on an expensive cruise or use up the last of their paycheck to book a tropical vacation.

But the wealthy know that spending money on a vacation you can't afford is a surefire way to hold yourself back from becoming rich.

Is your disposable income getting eaten up by new shoes, phones, or Amazon finds? Then you might be a member of the middle class.

Rich people know that this kind of consumerism can keep you from building wealth. Instead, they plan their purchases to include necessary items that last, not trendy items of low quality.

Your financial situation is unique from any other individual's, but playing the comparison game can be tempting. If you find yourself comparing your expenses and income to your friends and justifying your situation based on these comparisons, you might not understand finances as much as you think you do.

Rich people tend to put their heads down, take care of their own finances, and diligently save and invest.

You signed on the dotted line for a car payment you can't realistically afford, or your student loan payments are hard to swallow. In fact, you find the monthly debt payoffs overwhelming.

Those who are building wealth, on the other hand, don't sign up for debt they can't afford in the long run, and take care of their debt before it has the chance to bring them under.

Whether you're just starting your journey to financial freedom or you're decades into investing and building wealth, using certain signs of financial success can help you perform a check-up on your finances.

On the other hand, these 10 signs might also clue you in to some troublesome financial habits that could be holding you back from becoming wealthy.