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Spending money is easy. Staying out of debt and sticking to your financial goals can be harder. Plus, inflation is making it even harder to reach the middle class these days.

I’m a Frugal Shopper:

There are many spending traps that you might already be falling for that are keeping you from greater financial success. However, identifying them and making some small adjustments can help propel you into the middle class.

Here are 10 of the most common monthly spending traps keeping you from the middle class, according to CBS News and others:

Ignoring Your Emergency Funds and Long-Term Goals

Paying close attention to the amount in your emergency fund and focusing on your long-term financial goals are both crucial. Excessive monthly spending can cause you to deviate from your saving goals and prevent you from reaching milestones such as buying your first home. Be sure to keep your spending in check so that you can always reach (or better yet, exceed) all financial goals you set.

Parking Your Money in a Traditional Savings Account

Savings accounts at traditional brick-and-mortar banks pay virtually no interest. In today’s inflationary economy, this is simply not an option. Instead, leave your cash in a high-yield savings account. These savings accounts offer much higher interest rates, which can better shield your money from the effects of inflation and grow your net worth over time.

Succumbing to Lifestyle Inflation and Impulse Spending

It’s easy to fall into the trap of lifestyle inflation. You might have gotten a big raise at work, or maybe you moved on to a new opportunity and got yourself a big salary bump. It can be tempting to get a nicer house, a new car, or spend on other things that you can probably do without. Lifestyle creep and impulse spending go hand in hand. Be sure to exercise self-control so you can save more money instead and reach the middle class faster.

Paying Monthly Fees or Other Charges on Your Savings Account

Some savings accounts may require a minimum daily balance to avoid charges or a monthly fee just to keep the account open. Instead, switch to a more flexible savings account that doesn’t require any monthly fees. This way, you’ll keep more money in your pocket. 

Not Consistently Adding Money to Your Savings Account

Consistently adding money to your savings account is absolutely necessary to grow a sufficient emergency fund and reap the maximum benefits of compound interest. Consider setting automatic weekly or monthly deposits from your checking account to your savings account. You can set the deposit date to align with your payday. This way, you won’t feel the difference and you’ll grow your savings automatically. 

Not Cutting Back on Unneeded Monthly Subscriptions

There are so many monthly subscriptions these days. The costs associated with signing up for a gym membership, streaming services, and subscription boxes can add up fast. It can be easy to forget about your subscriptions since they are automatically charged to your bank account or credit card each month. Take time to review your bank statements and identify the recurring monthly charges that you can eliminate.

Buying Too Many Lottery Tickets

Playing the lottery all the time can drain your finances and leave you with less discretionary income that you could be saving and investing instead. The odds of winning the lottery are so small that it’s probably not worth buying tickets at all. Try to kick your lottery ticket habit so you can build your finances and reach middle-class status.

Eating Out Too Often

Eating out is always nice. However, it’s not cheap. If you’re dining out multiple times per month (or per week), cutting back on your restaurant visits will free up a lot of cash. Eating at home not only saves you money but can also be healthier too.

Not Shopping Around for Better Insurance Rates

There are so many insurance policies that most of us pay for. Car insurance, medical insurance, and homeowners insurance just to name a few. Sometimes, keeping an existing policy for too long can actually mean that you’re overspending. Not shopping around for better rates periodically can create a drain on your finances. Be sure to compare insurance rates across competitors so you can get the best rate and save more money. 

Staying in Credit Card Debt

Credit card debt is dangerous since it typically carries a high interest rate. Your debt can compound if you don’t crush it fast enough. Killing your credit card debt should be a top priority so you can redirect funds toward saving and investing to boost yourself into the middle class.

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