8 Things the Middle-Class Should Consider Downsizing To Save on Monthly Expenses

Whether you started out the year trying to budget for large expenses, or looking to begin investing more — the biggest change you can make to your financial situation is downsizing to save more on monthly expenses.

“By revisiting these common expenditures and adjusting purchasing habits, the middle class can enhance their financial stability without giving up the essentials that enhance their daily lives,” said Justin Godur, finance advisor and founder of Capital Max .

Read below for more areas you can look to downsize.

In contrast, here are five things you should sell before you consider downsizing .

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Subscription Services

One of the easiest areas for middle-class families to save money, according to Dennis Shirshikov, finance expert and head of growth at GoSummer , 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 recommends 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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Dining Out and Takeout

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,” Shirshikov said.

Vehicle Expenses

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,” he said.

Cable and Internet Packages

“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.

Godur 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,” Godur said.

High-End Smartphones

“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.”

Brand-Name Groceries

Shopping for groceries can quickly become expensive when opting for brand-name products, Godur said.

“Many store-brand items are nearly identical in quality but are significantly cheaper.”

He said this simple switch can save a noticeable amount each month without sacrificing quality.

Gym Memberships

“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,” he said

Shirshikov shared a similar view.

He said 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.”

Daily Coffee Purchases

“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.”

This article originally appeared on GOBankingRates.com : 8 Things the Middle-Class Should Consider Downsizing To Save on Monthly Expenses