8 Things the Middle Class Should Consider Cutting Back on to Save on Monthly Expenses

Whether you started the year trying to budget for major expenses or are looking to start investing more, the biggest change you can make to your financial situation is to reduce your monthly expenses to save more.

“By revisiting these everyday expenses and adjusting their purchasing habits, the middle class can improve their financial stability without giving up the essentials that enhance their daily lives,” said Justin Godur, financial advisor and founder of Capital Max.

Read below to discover other areas where you may want to consider downsizing.

On the other hand, here are five things you should sell before considering downsizing.

See more: What is the median upper-middle class household income in 2024?

Try This: 3 Awesome Things All Rich People Do With Their Money

Subscription Services

One of the easiest areas for middle-class families to save money, according to Dennis Shirshikov, financial expert and head of growth at GoSummer, is evaluating and downsizing their subscription services.

“Many households subscribe to multiple streaming services, digital magazines and monthly inboxes, often spending more than $100 per month,” he said. “Although these services seem affordable individually, they can add up to a considerable amount of money. »

One practical approach he recommends is to review all subscriptions and eliminate those that are rarely used or have overlapping content.

“For example, choosing one or two favorite streaming platforms instead of subscribing to five can save around $30 to $50 per month,” Shirshikov said.

For you: 6 reasons why the poor stay poor and the middle class doesn’t get rich

Restaurants and takeaways

Another big expense for many middle-class families is restaurant meals and takeout, Shirshikov said.

“While convenient, eating out frequently can quickly become a financial burden,” he said. “According to the Bureau of Labor Statistics, the average household spends about $3,000 per year on food away from home. »

“Reducing the frequency of eating out by meal planning and cooking at home can result in substantial savings,” Shirshikov said.

Vehicle expenses

According to Shirshikov, reducing vehicle expenses is another effective way to save money.

“Many middle-class families own multiple cars, which can be expensive when you factor in insurance, maintenance, fuel and loan payments,” he said.

Shirshikov said assessing the necessity of each vehicle and considering alternatives like carpooling, public transportation or even cycling can lead to significant savings.

“For example, selling a second, rarely used car can save on insurance and maintenance costs, potentially freeing up $200 to $400 per month,” he said.

Cable and Internet packages

“The rise of streaming services and online content has made traditional cable offerings less essential,” Shirshikov said.

“Middle-class families can often find more cost-effective options by cutting back on their cable packages or switching to internet-only plans bundled with streaming services.”

“According to a report from DecisionData.org, the average cable bill in the United States is approximately $217 per month.”

He said that by cutting the cord and opting for a high-speed internet plan combined with a few streaming subscriptions, families can save up to $100 a month.

Godur agreed.

“Often we subscribe to expensive cable packages thinking we need lots of channels or premium content,” he said.

However, he pointed out that most people don’t use half of what they pay for.

“Opting for selective streaming services or a basic cable package can save a substantial amount of money each month,” Godur said.

High-end smartphones

“While the appeal of the latest smartphone model is strong, these devices can be incredibly expensive,” Godur said.

“Opting for a model a generation or two older can still offer great features at a fraction of the cost. »

Branded groceries

Grocery shopping can quickly become expensive when opting for name-brand products, Godur said.

“Many store brand items are almost identical in quality but are significantly less expensive. »

He said this simple change could save a significant amount each month without sacrificing quality.

Gym Memberships

“Gym memberships are beneficial, but often underutilized,” Godur said.

“Given the cost, it is practical to switch to cost-effective or free alternatives like outdoor exercise, community sports groups or even online workout classes that are much cheaper or free,” he said.

Shirshikov shared a similar view.

He said many people pay for subscriptions they rarely use.

But he also advised that when the weather permits outdoor activities like running, cycling or hiking, middle-class people should explore home workout programs or local community centers with fees lower.

“It can be an effective way to stay fit without high costs.”

Daily coffee purchases

“A daily coffee purchase at high-end cafes can quietly empty your wallet,” Godur said.

“Investing in a good home coffee maker can significantly reduce your monthly expenses and you may find that you enjoy the taste of your homemade drink just as much. »

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This article was originally published on GOBankingRates.com: 8 Things the Middle Class Should Consider Cutting Back on to Save on Monthly Expenses