9 Downsizing Tips for the Middle Class To Save on Monthly Expenses

Yahoo

9 hours ago

There's only so much you can control about your financial situation. You can't snap your fingers and magically increase your salary. The reality is that if you're in the middle class, one of the biggest changes you can make is downsizing to save money on monthly expenses.
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But that doesn't mean you have to give up everything you enjoy in your daily life. There are some pretty common expenses and purchasing habits the middle class can easily cut back on that can seriously improve their finances — especially for people with debt.
One of the easiest areas for middle-class families to save money, according to finance expert, Dennis Shirshikov, is by evaluating and downsizing their subscription services.
'Many households subscribe to multiple streaming services, digital magazines and monthly delivery boxes, often spending more than $100 per month,' he said. 'While individually these services seem affordable, collectively they can add up significantly.'
A practical approach he recommended is to review all subscriptions and eliminate those that are rarely used or overlap in content.
'For example, choosing one or two favorite streaming platforms instead of subscribing to five can save around $30 to $50 monthly,' Shirshikov said.
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If you're in the middle class and carry debt, you know how much of your monthly budget it can eat up. Your balance keeps growing, and you can struggle to even make the minimum payments on top of all your other bills.
With debt settlement, their experts will negotiate directly with your lenders to agree on a reduced balance, meaning you could pay less than what you owe. With debt consolidation, all your debt is combined into one new loan, ideally with a lower interest rate. This helps you pay off your balance faster and saves money on interest payments.
Another significant expense for many middle-class families is dining out and takeout, Shirshikov said.
'While convenient, frequently eating out can quickly become a financial drain,' he said. 'According to the Bureau of Labor Statistics, the average household spends about $3,000 annually on food away from home. Reducing the frequency of dining out by planning meals and cooking at home can result in substantial savings.'
According to Shirshikov, downsizing vehicle-related expenses is another effective way to save money.
'Many middle-class families own multiple cars, which can be costly when considering insurance, maintenance, fuel, and loan payments,' he said.
Shirshikov said evaluating the necessity of each vehicle and considering alternatives like carpooling, public transportation or even biking can lead to significant savings. 'For example, selling a second car that is rarely used can save on insurance and maintenance costs, potentially freeing up $200 to $400 monthly.'
'The rise of streaming services and online content has made traditional cable packages less essential,' Shirshikov said. 'Middle-class families can often find more cost-effective options by downgrading their cable packages or switching to internet-only plans combined with streaming services. According to a report by DecisionData.org, the average cable bill in the U.S. is about $217 per month.'
He said by cutting the cord and opting for a high-speed internet plan paired with a few streaming subscriptions, families can save upwards of $100 per month.
Justin Godur, finance advisor and founder of Capital Max, agreed. 'Often, we subscribe to expensive cable packages thinking we need numerous channels or premium content,' he said.
However, he noted that most people don't utilize half of what they pay for. 'Opting for selective streaming services or a basic cable package can save a substantial amount each month.'
'While the allure of the latest smartphone model is strong, these devices can be incredibly expensive,' Godur said. 'Opting for a model that's one or two generations older can still provide excellent functionality at a fraction of the cost.'
Shopping for groceries — or medications — can quickly become expensive when opting for brand-name products.
'Many store-brand items are nearly identical in quality but are significantly cheaper,' Godur said. This simple switch can save a noticeable amount each month without sacrificing quality.
'Gym memberships are beneficial, but often underutilized,' Godur said. 'Considering the cost, it's practical to switch to cost-effective or free alternatives like outdoor exercises, community sports groups or even online workout classes that are much cheaper or free.'
Shirshikov shared a similar view, saying many people pay for memberships they rarely use. But he also advised that when the weather permits outdoor activities like running, biking or hiking, those in the middle class should explore home workout routines or local community centers with lower fees.
'This can be an effective way to stay fit without the high costs,' he said.
This last tip is arguably a bit tired, but it doesn't make it any less true.
'A daily coffee purchase at high-end cafes can quietly drain your wallet,' Godur said. 'Investing in a good coffee maker at home can dramatically cut down your monthly expenses and you might find you enjoy the taste of your home brew just as much.'
At the very least, just try to cut down on your Starbucks trips, and you could find yourself with an extra $100 in our savings account every month.
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This article originally appeared on GOBankingRates.com: 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses