8 Things the Middle Class Have Stopped Buying
Since the onset of the COVID-19 pandemic more than four years ago, everything in the U.S. has become more expensive. The cost of housing, groceries, utilities, insurance, and more are higher than in pre-pandemic times, thanks to inflation and rising interest rates.
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The middle class, in particular, finds themselves feeling the financial squeeze these days. A recent report from Bloomberg indicated that the middle class is struggling financially. A majority of survey respondents feel financially insecure and one-third feel the extreme stress about paying off debt.
Now, many middle-class Americans are cutting back on unnecessary expenses to save money.
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8 Expenses the Middle Class Is Opting Out Of
Here are eight things the middle class could spend money on but instead has cut back on to save money, according to Societe US:
Eating out at restaurants: Dining out is fun, a time to unwind and connect with family and friends over a nice meal. But, it can get expensive. If you dine out once a week, consider cutting back to dining out just once a month. The savings can really add up and you’ll put more cash back in your wallet.
New smartphones: Buying the latest and greatest smartphone every year means you’ll have the latest technology in your pocket. But, you’ll also have a lot less money in your pocket too. Instead of spending around $1,000 on a new smartphone, keep your existing phone for an extra year or two. The potential savings can go a long way.
Coffee shop runs: Grabbing a coffee on your way to work every morning is fast and convenient. But those $5 lattes could take a considerable bite out of your monthly budget. Instead, think about making coffee at home each morning and taking it with you on your commute. Those extra savings can go toward necessary expenses and help reduce your debt.
Organic groceries: Many health-conscious consumers have been purchasing organic groceries in recent years. However, the middle class is weighing whether the additional cost is actually worth the added health benefits. If you need to free up more cash flow, consider buying at least some conventional groceries instead. You can purchase fruit and vegetable wash to remove added pesticides from conventional produce.
Gym memberships: Going to the gym is great for your physical fitness and mental health. But paying for a gym membership is another monthly expense that eats away at your take-home pay. As an alternative, purchase exercise equipment and continue your usual workout routine at home instead of shelling out cash for monthly membership fees.
Cable TV: Having access to lots of TV channels is great, but do you really watch all of them? Maybe not. It’s no surprise that cord-cutting is becoming more common among the American middle class. You can save a bundle by getting rid of traditional cable and paying for a few streaming subscriptions instead.
Streaming services: After you cut out cable TV, see how many streaming services you’re already paying for. It’s a smart idea to cancel the ones you rarely use or can do without. You’d be surprised how much money you can save by reducing the number of streaming services you pay for to just one or two rather than four or five. You can also alternate streaming services: pay for one streaming service for a few months, then cancel it and pay for another instead.
College education: The cost of a college education continues to rise. Tuition and student loans have become a financial burden that many middle-class Americans are avoiding. In fact, many Gen Zers are opting out of college, starting careers, and building small businesses. Consider an alternative path to success that doesn’t involve getting a college degree.
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This article originally appeared on GOBankingRates.com: 8 Things the Middle Class Have Stopped Buying