Being in the middle-class income bracket creates a sense of financial security and a steady income. Middle-class individuals typically spend money on products or services they consider convenient and that provide a comfortable lifestyle. While some of these things are enjoyable, most are unnecessary and wasteful.
Find out more about the five things middle-class people waste money on
1. Too Many Subscription Services
Most people in the middle-class income bracket will have several subscriptions. They’ll have gym memberships, streaming services, online magazine subscriptions, meal kit delivery services, software subscriptions, lifestyle subscriptions, etc.
Many people aren’t fully aware of their subscriptions, which can lead to forgotten subscriptions that continue to drain their finances. Certain subscriptions have extra costs, such as premium features, that can quickly add up over time. Money spent on unnecessary subscriptions can go into investments, savings, or more meaningful experiences like a vacation.
2. Expensive Coffee
The middle class spends a lot of money on expensive lattes, cappuccinos, espressos, etc., out of habit. They are used to the convenience of grabbing a latte at their favorite coffee shop on their way to work for a quick caffeine fix. For others, coffee shops are a great place to socialize and meet friends for a drink.
While occasionally treating yourself to a cup of coffee won’t break the bank, buying coffee daily can be expensive. You could put that money in an interest-earning savings account, get you started on investing, or help you build up your retirement fund.
3. Extended Warranties
Purchasing an extended warranty on your washing machine, car, backpack, or other product is a wasteful and unnecessary purchase. The chances of using these warranties are low as most expire before your electronic or appliance wears off. Some extended warranties don’t cover everything in case your appliance breaks down.
Getting an extended warranty for every appliance or device in your home costs a lot of money, which you can use to cover repairs or buy a new appliance. The money saved can also be used to fund your daily expenses or to make potential investments.
4. Dining Out and Takeouts
Some people in the middle-class social bracket perceive eating out as a convenience. They are busy managing a career, starting a side hustle, and handling other responsibilities. The lack of time is why most individuals will dine out or opt for takeout regularly. Over time, dining out and takeouts are costly compared to cooking at home.
5. Expensive Gadgets and Electronics
The middle class constantly wants to upgrade to the latest gadgets and electronics. They’ll get the latest iPhone, Soundbar, or appliance, which can be financially draining.
Unfortunately, most electronics depreciate as soon as they’re used, and the minimal changes in most upgrades do not warrant extravagant costs. Getting the newest gadget every year leads to unnecessary expenses, which takes money away from other essential financial obligations.
These are a few things the middle-class people waste money on that could be better utilized elsewhere. By avoiding these common money wasters, you can focus more on your goals/priorities and achieve financial stability.
