10 Middle-Class Status Symbols That Are Actually Keeping You Poor

When people constantly spend money on expensive things to fit in with their friends or peers, they’re said to be “keeping up with the Joneses.” Whether that means getting a flashy new car whenever your neighbor does or simply upgrading your child’s phone because everyone in their class has the latest gadget, these middle-class status symbols can send the world the message that you’re living comfortably.

But these purchases can actually harm your finances. And in extreme cases, keeping up with the Joneses can actually cause you to lose your middle-class status altogether, draining your bank accounts or ruining your budget for materialism. As such, some people consider this kind of spending one of the most foolish ways to waste money.

Here are 10 status symbols that are keeping you poor.

New models of iPhone and Android are released yearly, and upgrading each time is a financial trap because the devices are so expensive. You’ll pay between $700 and $1,500 to purchase them outright, and leasing leads to monthly payments of around $30 to $50.

Phones depreciate quickly, so it’s a high-cost item that offers no return. These purchases can strain your budget and limit your ability to save or invest.

Living the “busy soccer mom” lifestyle can drain your finances and prevent you from building wealth. Driving kids to activities leads to spending money on gas and causes wear and tear on your vehicle.

Plus, you'll spend money eating out with the kids because there's no time to cook at home. These costs quickly add up, in addition to the activities and required equipment costs.

Getting a new car every few years might symbolize success, but it’s a waste of money. New cars lose value quickly, meaning you’re investing in assets that won’t ever gain interest.

The hefty price tag of new cars is also financially straining for many, so trading yours for a newer model could make you poor. And leasing a new car won’t offer you too much relief, since you’ll end up paying a large monthly bill for a vehicle you’ll never own.

Living in a big home in a high-demand, expensive neighborhood isn’t worth the status symbol when you factor in the expenses that come with it.

Not only will your mortgage payment be higher, but you’ll likely pay more in property taxes, maintenance fees, utility bills, and insurance costs than you would if you had a smaller home in a different neighborhood.

You might feel like you need expensive home appliances or kitchen gadgets to maintain your status in the community, but that’s likely a hindrance to your finances.

You can get lower-priced appliances, kitchen equipment, or culinary tools that do the job just as well as the expensive options without the hefty price tag.

You might feel good wearing high-end designer items, but typically, they don’t have any financial return and often go out of style quickly.

This kind of shopping also tends to lead to buying a new style each time one gets released so you can keep up with the changing trends. If you do this, you’ll be more likely to overspend on clothes and accessories instead of paying off debt, building your savings, or investing in assets.

Haircuts are necessary, but splurging on them can drain your monthly expenses. Add in color treatments, manicures, and pedicures, and you’re likely to see a huge balance at the end of your beauty session.

While you might enjoy high-end beauty services, it could hold you back financially, costing hundreds of dollars per trip to the salon.

Stopping for coffee or lattes each day quickly adds up. If you’re someone who frequently stops for food or drinks while you’re out and about, you may be draining your bank account without realizing it.

Occasional indulgences are enjoyable, but overindulging can leave you in the trap of living paycheck to paycheck.

Furniture can be expensive, especially when opting for high-end options. Whether you pay in full or use credit, it may make you look like you have money, but it won’t help you build wealth.

Instead, you’re spending on items that depreciate quickly and may need replacing every few years.

Weddings can cause overwhelming financial stress, and many people go into debt to cover the high costs. It’s a status symbol that ultimately is only to impress those you invite to your wedding.

Rethinking a lavish wedding could leave you with more funds to make money moves like buying a home, investing, or saving for the future.

You can escape these middle-class status symbol traps by sticking with the possessions you already have, like cars and phones. Despite societal expectations or pressure, you can also avoid overbooking your kids and skip costly food, drinks, and services.

Simplifying your lifestyle and cutting back on unnecessary expenses can help you pay off debt, save money, invest, and build real wealth for your family.

Aside from avoiding these money-wasting habits, you can find other ways to supplement your income to build wealth, including side hustles and entrepreneurship.