Yahoo Finance I Grew Up Poor: How I Reached the Upper Middle Class by Age 30
The idea of the American dream is that anyone can go from humble beginnings to prosperity through hard work and not giving up. But in reality, making that journey from poverty to upper middle class is still very rare. It takes both hard work and luck.
We talked to Kent Bausman, professor of sociology at Maryville University in St. Louis, whose life shows one example of going from rags to riches. After growing up poor with just his single mom, he took deliberate steps to change his circumstances. He was able to achieve this goal by age 30.
“As a sociologist, I frequently write and teach about topics related to poverty,” Bausman said. “My interest in this subject stems from my personal journey, transitioning from growing up poor to achieving upper-middle-class status.”
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Education
Bausman is keenly aware of the many factors that go into socioeconomic standing.
“Social class, as I always emphasize to my students, encompasses more than just income and wealth; it also encompasses education and occupation,” Bausman said. “In my case, it was primarily my occupation that facilitated upward mobility.”
Obtaining a college degree is one of the most reliable paths to upward mobility. Higher education provides access to occupations typically associated with upper-class status, such as doctors, lawyers, engineers and executives. But finding the money to pay for higher education is a major hurdle if you come from a low-income background.
“Growing up in a single-parent household meant having fewer resources to prepare for success in adulthood,” Bausman said. “Fortunately, I had peers who attended college and encouraged me to pursue higher education. Saving from my factory job, along with student loans and Pell Grants, financed my undergraduate degree.
“Although hesitant to accumulate debt, I completed my undergraduate education with only $6,000 in loans. Today’s students might not have the same access to financial aid, potentially hindering their pursuit of higher education as a pathway to upper social mobility.”
Sufficient financial aid in the form of grants, scholarships and loans enabled Bausman to earn his college degree with minimal debt. However, today’s students often take on $30,000 in student loans or more.
If you must take out a loan to pay for college, try to minimize the amount borrowed. You may want to consider attending a more affordable public in-state school, and attending community college for the first two years can also significantly save on costs.
Household Dynamics
Your social class status is heavily influenced by who in your household earns an income. Single-income households have become less common and dual-income households are now the norm, especially among the middle and upper middle class. This shift has redefined which income levels are associated with class status.
“During the 1970s, 1980s and 1990s, I experienced poverty, largely due to being raised in a single-parent household,” Bausman said. “Over time, the American household dynamic shifted towards dual incomes as a means of reaching the middle class. In my adulthood, partnering with my now-wife significantly increased our combined income from our professional careers, allowing us to achieve what is typically associated with upper-middle-class status.”
Bausman found that marrying someone with an income comparable to his own greatly increased his household earnings. Communicate openly about finances with your partner, and be mindful of how your combined finances will impact your life together.
Comfortable Living
By earning an undergraduate degree, Bausman gained the skills and credentials to pursue additional education. He went on to obtain a Ph.D., which opened the door to a stable, prestigious career. Education became his ladder for climbing out of poverty and into the upper middle class.
“By the age of 30, I obtained my Ph.D. and secured a stable job with benefits,” Bausman said. “My wife, whom I met during graduate school, holds a master’s degree in counseling. Our household’s level of education and occupation aligns with the upper middle class, which is characterized by high levels of education and occupational prestige.”
Even high-earning professionals may not immediately attain the wealth associated with the upper class.
“Despite professional achievements, we initially did not have the combined income to qualify as upper class,” Bausman said. “However, careful planning enabled us to live comfortably. We delayed marriage and starting a family until we felt financially secure, allowing us to save more.”
Bausman and his wife made deliberate choices that optimized their finances despite not having a high level of income. They delayed major expenses, which allowed them to accumulate savings and establish stability.
Rising Fortunes and Financial Security
Today, Bausman and his wife enjoy indulgences like dining out and vacations. Homeownership also has proved a sound investment, appreciating significantly in value. However, even as Bausman’s wealth has grown, he has maintained his frugal spending habits.
“While our financial means increased, we remain cautious about overspending,” Bausman said. “As a former poor individual, I now work with a personal broker to manage our finances. However, I fear that younger generations face greater obstacles to achieving upper-middle-class status due to rising costs.”
Even after he achieved financial stability, Bausman’s experience growing up poor made a lasting impact.
“Despite the comfort of our current socioeconomic status, the memory of poverty lingers, and there’s a persistent fear of losing it due to unforeseen circumstances,” he said.
It’s normal and perfectly valid to worry about backsliding into hardship, even when you’re solidly upper middle class. You can give yourself a security blanket by building your emergency savings fund. If you have six to 12 months of living expenses in the bank, it will go a long way to reducing your stress.
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This article originally appeared on GOBankingRates.com: I Grew Up Poor: How I Reached the Upper Middle Class by Age 30
