{"id":274897,"date":"2025-11-06T10:00:20","date_gmt":"2025-11-06T10:00:20","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/274897\/"},"modified":"2025-11-06T10:00:20","modified_gmt":"2025-11-06T10:00:20","slug":"3-middle-class-money-habits-keeping-you-from-getting-rich","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/274897\/","title":{"rendered":"3 Middle-Class Money Habits Keeping You From Getting Rich"},"content":{"rendered":"\n

You\u2019re making the right moves with your money \u2014 or so you think. You\u2019ve worked hard to earn a solid, middle-class income<\/a>. You prioritize saving. Budgeting has become a habit. You don\u2019t splurge often. Yet you\u2019re not building wealth the way you want to. You face a financial conundrum: Which habits should you change to stop being stuck and start getting rich?<\/a><\/p>\n<\/p>\n

Explore More: Most Experts Say Buy Index Funds. Charles Payne Says Do This Instead<\/a><\/p>\n

Learn About: How To Get Guaranteed Growth On Your Money \u2014 Without Risking Your Principal<\/a><\/p>\n

As the host of \u201cMoney Rehab<\/a>\u201d and the best-selling author of books like \u201cMiss Independent\u201d and \u201cThe Money School,\u201d Nicole Lapin<\/a> is acutely aware that many habits middle-class people think are keeping them secure are actually keeping them from becoming wealthy.<\/p>\n

Lapin sat down with GOBankingRates as part of our Top 100 Money Experts<\/a>\u00a0series to talk about how to identify and change these habits to build sustainable wealth. Fortunately, it\u2019s easier than you might think.<\/p>\n

To Lapin, one significant \u2014 albeit well-intentioned \u2014 error that many middle-class people make is confusing saving money<\/a> with creating wealth.<\/p>\n

\u201cKeeping too much cash parked in a low-yield account feels prudent, but inflation erodes its value every year,\u201d she said. \u201cOver a decade, that \u2018safe\u2019 money quietly loses real buying power.\u201d<\/p>\n

She issues a clear warning for anyone who thinks saving money \u2014 even a lot of money \u2014 is enough: \u201cUltimately, you can\u2019t save or budget your way into wealth,\u201d she said.<\/p>\n

Read Next: 5 Wealth-Building Habits of the Rich That You Might Want To Adopt<\/a><\/p>\n

The other common trap Lapin sees middle-class earners falling into is lifestyle inflation<\/a>. Picture it: You get a raise or a bonus at work, so you decide to treat yourself. Only instead of a small victory splurge, you start taking on added costs through flashy upgrades to your home or car, or a new penchant for shopping at the fancy grocery store.<\/p>\n

Lapin cautions against giving your lifestyle a glow-up alongside your income.<\/p>\n

\u201cA bigger paycheck should create a bigger gap between what you earn and what you keep, but too often it just funds a nicer car or bigger house,\u201d she said.<\/p>\n

While middle-class people can carefully track their savings, sometimes they don\u2019t pay enough attention to what Lapin calls \u201chidden drags\u201d \u2014 expenses that silently erode wealth. These include high-interest debt<\/a>, fees associated with bank accounts or mutual funds, and of course, all those pesky subscriptions that don\u2019t seem like much individually but together can create a real drain on your accounts.<\/p>\n

Story Continues <\/p>\n

Understanding where you\u2019re holding yourself back is the first step in moving forward. Next, Lapin wants you to investigate the actual flow of your money.<\/p>\n

She recommends downloading three months of bank statements and scrutinizing every line, holding a magnifying glass to where every raise, bonus or windfall went. Ask yourself if that money helped you in meaningful, long-term ways \u2014 like expanding your investment accounts<\/a> \u2014 or if it only went toward short-term spending.<\/p>\n

\u201cMeasure how much of your net worth is idle cash versus invested capital,\u201d she said. \u201cReview debt with a cold eye: Anything charging more than you could reasonably earn investing is slowing wealth creation.\u201d<\/p>\n

This exercise isn\u2019t about guilt; it\u2019s about clarity. With a deeper knowledge of your finances, you can make small, intentional shifts that unlock growth.<\/p>\n

Lapin has good news for anyone worried that changing habits will be hard. Through consistency, smart decision-making and proactive money management, you can lean into behaviors that will help you build wealth, even on a middle-class income.<\/p>\n

Prioritize investing: \u201cMake investing automatic and nonnegotiable,\u201d Lapin said. \u201cSend money straight from each paycheck into retirement or brokerage accounts<\/a> so it\u2019s not a decision you revisit every month.\u201d<\/p>\n

Use financial products that let you keep more of your money: Lapin recommends using tax-advantaged accounts like a 401(k)<\/a>, IRA<\/a>, or HSA<\/a> to keep more of your earnings working for you \u2014 and make sure you contribute enough to your 401(k) to receive any employer match.<\/p>\n

Focus on debt: High-interest debt should be treated like an emergency. \u201cEvery dollar of interest you stop paying is an immediate, risk-free return,\u201d she said.<\/p>\n

Watch out for lifestyle inflation: Let your lifestyle lag behind any income growth. Lapin advises putting part of every raise or bonus toward saving and investing first.<\/p>\n

Keep investments simple and low-cost: \u201cBroad index funds and consistent contributions outperform complex strategies most people can\u2019t maintain,\u201d Lapin said.<\/p>\n

The same discipline that helped you remain middle class can help you achieve the next level of success \u2014 building significant and sustainable wealth.<\/p>\n

\u201cWealth building is rarely about a single windfall<\/a> or clever trade,\u201d Lapin said. \u201cIt is the quiet accumulation that happens when you push more of your income toward ownership \u2014 of stocks, businesses or property \u2014 and let time work.\u201d<\/p>\n

If you\u2019re not creating the wealth you want \u2014 even with a middle-class income \u2014 you might be confusing saving for wealth-building, letting lifestyle inflation creep in, or ignoring hidden drains on your accounts. These habits didn\u2019t appear overnight, but with patience and diligence, you can reverse them sooner than you think.<\/p>\n

This article is part of GOBankingRates\u2019\u00a0Top 100 Money Experts\u00a0series, where we spotlight expert answers to the biggest financial questions Americans are asking. Have a question of your own?\u00a0Share it on our hub<\/a>\u00a0\u2014 and you\u2019ll be entered for a chance to win $500.<\/p>\n

This article is for informational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of principal. Always consider your individual circumstances and consult with a qualified financial advisor before making investment decisions.<\/p>\n

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This article originally appeared on GOBankingRates.com<\/a>: 3 Middle-Class Money Habits Keeping You From Getting Rich<\/a><\/p>\n