4 Common Expenses That Won’t Go Away for the Middle Class

INTRODUCTION
No matter how you cut it, if you’re part of the middle class, there are certain expenses you won’t be able to escape. And with sky-high inflation, theses costs are something to prepare for in the future.


Lifestyle Creep
As an expert in helping rental property owners and house flippers get new tenants and buyers, Andy Kolodgie, owner of PropertyLeads, has seen how expenses wear folks in the middle class down.

“Instead of just looking at numbers, I see expenses as things that change with the times, markets, and how people act — even if we don’t talk about it much,” he said. “One thing we don’t discuss enough is lifestyle creep. See, as people do better at work, their pay goes up a little at a time. But their costs rise just as much if not more! They start spending more on homes, cars, and fancier groceries.”

Housing
Finding a place to call home is a big deal for most middle-class families, said Angela Wang, owner of We Buy Houses 7.

“If you’re renting, you pay a fixed amount every month to your landlord, depending on things like the size, location and rental market,” she said. “Owning a house means dealing with a mortgage — a loan you took out to buy your dream home. You pay it off gradually, usually over 15 or 30 years, and there’s some interest involved. The monthly mortgage payment can change depending on factors like the house price, down payment, interest rate, and loan term. And don’t forget about property taxes and the occasional repairs that pop up!”

David Brillant, tax, trust and estate lawyer at Brillant Law, equally noted that housing — whether in the form of rent or mortgages — represents another significant and persistent expenditure.

“In my practice, I’ve advised clients on navigating Proposition 19, which had implications for property tax reassessment exclusions in California,” he explained. “This piece of legislation, among others, impacts the cost of housing and underscores the importance of understanding and planning for real estate-related expenses.”

Commuting Costs
“How long it takes to get to your job also costs you more than we acknowledge,” Kolodgie said. “As housing stays cheaper further out, workers have to travel more. But the daily drive eats your money on gas or trains. Your car needs fixes more often too. Insurance gets costlier. Plus you lose precious hours stuck in traffic.”

EDUCATION
Education expenses aren’t limited to tuition fees,” said Marty Burbank, attorney and owner of OC Elder Law. “They extend to planning for a child or grandchild’s future in a way that protects family assets while ensuring educational goals are met. Leveraging tools like educational trusts and advising clients on the benefits of tax-advantaged accounts like 529 plans have been a significant part of my practice.”

These methods, according to Brillant, not only aim to alleviate the financial burden of education but also to inculcate a culture of strategic financial planning within families.