Being part of the middle-class is often interpreted as being in a financially “safe” position. But in reality, many of you are still living paycheck to paycheck, with no room to save or invest. One of the main causes is unwise consumption patterns.
Instead of strengthening the financial foundation, the habit of buying items that give the impression of luxury, even though they are not essential, actually widens the gap between income and needs. If you are middle-class and want healthier finances, it is important to know what expenses should be stopped right now.
Interestingly, some of the suggestions in this article are in line with the principles often conveyed by legendary investor Warren Buffett. He always emphasizes the importance of living simply, buying based on needs, and not getting caught up in a consumptive lifestyle, especially for middle-class people who want to build long-term wealth.
So, to keep your finances healthy and your life more peaceful, here are five things that you should not buy in today’s uncertain economic conditions.
1. Regular Subscription Costs for Premium Apps
If you middle-class may often be tempted to subscribe to various premium services, ranging from streaming movies, music, to learning and productivity applications. Although it looks cheap per month, this cost can be a big burden when totaled and found to be not maximally utilized.
Subscriptions that are rarely used include passive expenses that slowly erode finances. Many middle-class even forget to subscribe to certain services, but still pay every month without realizing it.
To avoid these expenses, do a regular evaluation and stop subscribing to applications that are not used. Focus only on services that you really use. This is a small step that can improve cash flow without having to drastically change your lifestyle.
2. Middle-Class Doesn’t Need a New Car
A new car is tempting, especially for the middle-class who feel the need to show their achievements. However, buying a new car without a pressing need is a very wasteful financial decision. As soon as you leave the dealership, the value of the new car you bought will immediately drop.
Meanwhile, installments, taxes, and maintenance costs continue to run. In the end, your monthly expenses become heavy and the space for saving or investment becomes narrower. Alternatively, consider a quality used car or public transportation. This decision can provide much healthier financial flexibility in the long run.
Also Read: 5 Solutions to Get Out of the Middle-Class Trap – Treasury
3. Always Updating Gadgets and Luxury Goods for Prestige
Every time a new smartphone is released, many middle-class people feel they have to buy it too. In fact, old gadgets are usually still quite capable for daily activities. This lifestyle often leads to waste. Not only gadgets, luxury items such as expensive watches or branded bags are also often bought for the sake of appearance.
Unfortunately, many of these purchases are paid in installments, sometimes even using a debt system. In this situation, you need to be wise. Looking cool is fine, but don’t let your finances become a victim. Buy things because of need and function, not just because of prestige.
4. Many Middle-Class are Trapped Buying Cheap Goods
One of the traps that often befalls the middle-class is buying cheap goods in order to save. But, cheap goods that are quickly damaged actually make you have to buy again and again. Total expenses can be greater than buying one quality product from the start.
For example, buying cheap kitchenware that breaks down in three months, then replacing it again or buying cheap shoes that only last a short time. This pattern eventually creates an inefficient consumption cycle. You should start applying the principle of buying goods based on quality not just cheap prices.
5. Don’t Spend Money on Uncertain Things
In real life, middle-class people are often trapped in the cycle of wanting to move up or get rich quickly through instant methods. So many middle-class are tempted to join investment trends without understanding the risks. From get-rich-quick schemes, viral crypto coins, to businesses run without research, everything can be a trap if done just for the sake of following.
As a middle-class person, stability is our main asset. Putting money into things that are uncertain, especially without a safe emergency fund, can have a long-term negative impact. Before you spend a lot of money, make sure you understand the risks and potential benefits.
Don’t let your hard-earned money disappear because of impulsive decisions. The smart middle-class are those who think long and carefully, not just follow trends. Even Warren Buffet said that “Be fearful when others are greedy, and be greedy when others are fearful.”
This means that you should be cautious when many people are crazy about buying or following trends (such as new gadgets or viral investments), and instead dare to take opportunities when many people panic. This philosophy teaches the importance of thinking clearly in making financial decisions, not going with the flow that can be misleading.
Being part of the middle-class is a golden opportunity to build a more prosperous future. But, if not managed wisely, this position is also very vulnerable to personal financial crisis. Don’t let a misguided lifestyle make you miss the golden opportunity to move up.
Middle-class should start evaluating consumption patterns and focus on long-term investments that already have a clear track record such as gold. Gold has proven its existence over the years as an investment instrument whose value always rises even in the midst of an economic crisis.
Don’t worry about having a large capital to start investing. Now, Treasury’s digital gold app allows you to start investing from just Rp5,000! Apart from being affordable, the various features of the Treasury app will also make your investment journey easier as you can buy and sell gold anywhere and anytime.
Remember, being middle-class is not just about how much you earn, but how you manage it wisely for a more established and financially free future.
