21 Financial Burdens Middle-Class Americans Are Dodging
Why are middle-class Americans saying no to expenses like brand-name groceries and designer clothing?
Today, many people are rethinking how they spend their money, cutting out costs that seem unnecessary or too high. According to a report by CNBC, avoiding daily coffee runs could save a person over $1,000 a year. Over time, these savings can be substantial, leading savvy money managers closer to their financial goals.
Here are some of the expenses that middle-class Americans are choosing to skip:
Cable TV
Streaming services have replaced traditional cable TV for many middle-class Americans. With customizable and cheaper options, cable’s rigid and expensive packages are becoming obsolete. Consumers are cutting the cord, saving an average of $1,200 annually.
Gym Memberships
Many are swapping pricey gym memberships for home workout routines. The rise of free online fitness programs and affordable equipment has made this switch easy. As a result, middle-class households are keeping fit without the hefty monthly fees.
Coffee Runs
Buying coffee daily from cafes is a habit many are dropping. Instead, they’re investing in quality home-brewing equipment, which offers long-term savings, cuts costs, and allows for customized coffee experiences.
Landlines
The landline phone is nearly extinct in middle-class homes. With the dominance of mobile phones, paying for an additional line seems unnecessary. This trend saves families money and reduces clutter.
Luxury Cars
Middle-class Americans are opting for reliable, affordable vehicles over luxury brands. Practicality and lower maintenance costs are driving this choice. Consequently, sales of luxury cars are seeing a decline among this demographic.
Extended Warranties
Extended warranties are often deemed unnecessary and overpriced. Many middle-class consumers now recognize that most products either fail within the standard warranty or last well beyond the extended period.
Magazine Subscriptions
The decline of print media is evident in the falling subscription rates. Digital content, often free or cheaper, is taking its place. Middle-class households are saving money while still enjoying their favorite reads.
Brand-Name Groceries
Store-brand groceries offer similar quality at a fraction of the price. Middle-class shoppers are increasingly turning to these products, which can save families hundreds of dollars a year without compromising on taste or quality.
Dining Out
Frequent dining out is being replaced by home-cooked meals. Cooking at home is cost-effective, healthier, and helps middle-class families manage their budgets better.
Designer Clothing
Middle-class Americans are moving away from expensive designer labels. Thrift stores and online resale platforms provide stylish alternatives at lower prices, promoting sustainable fashion and financial prudence.
Movie Tickets
With the rise of streaming platforms, fewer people are willing to pay for expensive movie tickets. Home entertainment systems offer a comparable experience without the high costs, reshaping the entertainment industry.
Travel Insurance
Travel insurance is often skipped by middle-class travelers. They weigh the cost against the actual benefits and frequently decide it’s not worth it, reflecting a more calculated approach to travel expenses.
Private Schools
Many middle-class families are choosing public schools over costly private education. They believe public schools can offer a comparable education without the high tuition fees.
Cable Packages
Specialized sports packages are losing appeal. Many sports fans find streaming services and online highlights sufficient. Middle-class Americans are thus cutting back on these expensive subscriptions.
Premium Gasoline
Unless required by the vehicle, premium gasoline is often seen as an unnecessary expense. Middle-class drivers are opting for regular gas, which meets their car’s needs just fine and results in significant fuel cost savings.
House Cleaning
Hiring house cleaners is a luxury many middle-class families are forgoing. DIY cleaning and shared household chores are becoming more common, helping to save money and promote a sense of shared responsibility.
Concert Tickets
The high cost of concert tickets is leading many to seek alternative entertainment. Free local events and streaming concerts at home are popular substitutes. Middle-class Americans are finding new ways to enjoy music without breaking the bank.
Spa Treatments
Expensive spa treatments are being replaced with DIY self-care routines. Affordable home spa products and treatments are now widely available, allowing for relaxation and pampering without the high price tag.
Delivery Fees
Many middle-class consumers are cutting back on food delivery due to the extra fees. Cooking at home or picking up food themselves is becoming more common, significantly reducing dining-related expenses.
Subscription Boxes
The novelty of subscription boxes is wearing off. Middle-class families are finding them to be an unnecessary expense. Instead, they prefer to shop for specific items as needed, which is more cost-effective.
New Electronics
Upgrading to the latest electronics every year is no longer a priority. Many middle-class Americans are holding onto their devices longer, which saves money and reduces electronic waste.
Luxury Vacations
Expensive luxury vacations are being swapped for more affordable getaways. Domestic travel and budget-friendly destinations are becoming popular choices, allowing middle-class families to enjoy vacations without incurring debt.
Brand-Name Medication
Generic drugs offer the same benefits as brand-name ones at a lower cost. Middle-class Americans are increasingly opting for generics, which significantly reduces healthcare expenses while maintaining treatment quality.
Pet Grooming
Professional pet grooming services are being replaced by at-home grooming. Many middle-class pet owners are learning to groom their pets themselves, cutting down on recurring costs and strengthening the bond with their pets.
Josh Dudick
Josh is a financial expert with over 15 years of experience on Wall Street as a senior market strategist and trader. His career has spanned from working on the New York Stock Exchange floor to investment management and portfolio trading at Citibank, Chicago Trading Company, and Flow Traders.
Josh graduated from Cornell University with a degree from the Dyson School of Applied Economics & Management at the SC Johnson College of Business. He has held multiple professional licenses during his career, including FINRA Series 3, 7, 24, 55, Nasdaq OMX, Xetra & Eurex (German), and SIX (Swiss) trading licenses. Josh served as a senior trader and strategist, business partner, and head of futures in his former roles on Wall Street.
Josh's work and authoritative advice have appeared in major publications like Nasdaq, Forbes, The Sun, Yahoo! Finance, CBS News, Fortune, The Street, MSN Money, and Go Banking Rates. Josh currently holds areas of expertise in investing, wealth management, capital markets, taxes, real estate, cryptocurrencies, and personal finance.
Josh currently runs a wealth management business and investment firm. Additionally, he is the founder and CEO of Top Dollar, where he teaches others how to build 6-figure passive income with smart money strategies that he uses professionally.