The middle class is a social stratum that is neither rich nor poor, yet forms a foundational force within society. While middle-class families may not be as affluent as the wealthy, they generally have their material needs met and do not struggle financially. Many middle-class individuals aspire to accumulate wealth and enter the ranks of the affluent, but their efforts often fall short, with one of the primary hindrances being poor consumption habits.
In the United States, the income standards for the middle class vary by state. According to the Pew Research Center’s definition, the middle-class income range nationwide falls roughly between two-thirds and twice the median household income, around $51,813 to $155,438 in 2025. However, in states with higher costs of living like Massachusetts and cities such as Arlington, Virginia, this threshold can significantly increase, while it remains lower in states with lower living costs like Mississippi.
Poor consumption habits among the middle class include excessive spending, impulse shopping, placing overly high value on conspicuous consumption, and neglecting savings and investments for the future. These habits can lead to debt, increased financial pressure, and long-term financial insecurity, preventing them from ascending to higher echelons of wealth.
Here are five consumption behaviors that hinder middle-class individuals from accumulating wealth, compiled by financial website Gobankingrate based on expert interviews.
Purchasing a car constitutes a significant expenditure for a household, and in most North American regions, a car is an essential commuting tool. However, impulsively upgrading to a new car is not a prudent habit.
If you have the means to make a down payment, the temptation to switch to a better and newer car can be strong. But if your current car is running fine, there’s no rush to repay the auto loan early, as doing so would waste money that could have been saved or invested.
“Unless you live in a city where public transportation is very convenient, you likely need a car. However, if your current car is in good condition, just keep driving it,” advised Mark Henry, Founder and CEO of Alloy Wealth Management.
He added, “If your car requires frequent maintenance, and you find yourself spending money on repairs regularly, upgrading or changing cars may be a wiser financial choice.”
He emphasized, “This doesn’t mean you need a brand-new dream car.” He explained that the average monthly payment for a used car is around $200 less than that for a new car, money that could be allocated to paying off student loans or deposited into a 401(k) retirement account or an Individual Retirement Account (IRA).
Investment legend Warren Buffett has always advised against high-interest debt and purchasing depreciating assets. Due to the rapid depreciation of new cars, they are one of the worst investments for the middle class. New cars typically depreciate by 20%–30% within the first year of ownership, a significant financial setback for average households.
Buffett drove a 2006 Cadillac DTS for almost a decade before switching to a 2014 Cadillac XTS damaged by hail.
According to Melissa Murphy Pavone, Founder of Mindful Financial Partners, monthly subscription fees for streaming services, gym memberships, food delivery services, and other convenience services are often overlooked. “Together with lifestyle inflation as income increases, these costs can deplete your financial resources.”
Henry explained, “Regularly reviewing your subscription items can help you save a lot of money. Even if some items only cost a few dollars per month, subscribing to ten things you don’t truly need or use can add up to a significant expense.”
A survey by Forbes Family showed that 47% of Americans pay for unused streaming services. Checking your bank statement might reveal subscriptions, whether for streaming services or gym memberships, that you no longer use.
Regardless of the amount spent, impulse purchases, whether practical or not, accumulate over time, eventually leading to poor spending habits.
“If you spend $50 each month without thinking, that’s $600 per year,” Henry said. For instance, impulse buying includes purchasing clothes, household items, or products advertised as ‘must-haves’ on social media.
“Before making credit card purchases, take at least 24 hours to consider whether the expense is worthwhile. This will not only save you money but also help you acquire more meaningful items and reduce clutter,” he recommended.
Opting for non-branded clothing or household items may seem more convenient and cost-effective, but in the long run, they often end up costing more. Henry believes that while the unit price may be lower, the overall cost is higher in the long term.
“For example, a $30 sweater that needs to be replaced every year (or more frequently) will cost you $150 over five years, whereas a $90 high-quality sweater, if cared for properly, can last ten years or more,” Henry said. “Seeking discounts on high-quality goods, purchasing during sales, and taking good care of them can lead to greater savings compared to budgeting for monthly replacement of cheap goods.”
Buffett once said regarding investments, “Price is what you pay, value is what you get.” This same wisdom applies to personal purchases – investing in durable, high-quality goods ultimately proves more economical than repeatedly opting for cheaper alternatives.
Henry pointed out that credit cards are a good means to build credit history and earn rewards, provided they are used wisely.
“Credit cards are not for purchasing things you can’t afford – so unless you’re sure you can pay it off before the due date, avoid making large purchases with a credit card,” Henry advised.
“Credit card interest rates are typically high, so debt can accumulate rapidly,” he added. “These high-interest debts are entirely avoidable and can lead to significant financial setbacks, becoming stumbling blocks to wealth accumulation.”
Buffett once expressed, “Credit card rates are very high. Sometimes 18%, sometimes 20%. If I borrowed money at 18% or 20%, I would be bankrupt.”