I used to think that building wealth was all about making more money. But over time, I realized that what really makes a difference is how you spend the money you already have.

A lot of middle-class spending habits seem harmless, even normal. But in reality, they keep people stuck in the same financial cycle, never really getting ahead.

If you want to grow your wealth this year, it’s time to take a closer look at where your money is going—and cut out the habits that are holding you back.

Here are seven spending habits you need to say goodbye to if you’re serious about building wealth.

1) Keeping up with the Joneses

We’ve all felt the pressure to keep up with friends, neighbors, or coworkers who always seem to have the latest and greatest of everything.

A new car, a bigger house, expensive vacations—it’s easy to feel like you should have those things too. But this mindset is one of the biggest traps keeping people from building real wealth.

The truth is, many of the people who appear wealthy are actually drowning in debt. They’re financing their lifestyle instead of growing their net worth.

If you want to become wealthier this year, stop spending money just to impress others. Focus on what actually matters—saving, investing, and making smart financial decisions that set you up for long-term success.

2) Buying a new car just because you can

A few years ago, I made what I thought was a smart financial move—I bought a brand-new car. I could afford the monthly payments, and I told myself it was a good investment because I needed reliable transportation.

But here’s what I didn’t consider: the second I drove that car off the lot, it lost thousands of dollars in value. And over the next few years, I watched as my “investment” kept costing me more in depreciation, higher insurance, and interest on the loan.

Looking back, I wish I had bought a reliable used car instead. It would have saved me a ton of money that could’ve been put toward investments or other financial goals.

If you want to build wealth, don’t fall into the trap of upgrading your car just because you can. A car is a tool—not a status symbol. Buy something practical and affordable, and put the extra money toward things that actually grow your wealth.

3) Paying for subscriptions you barely use

Most people underestimate how much they spend on subscriptions. Streaming services, gym memberships, premium apps—individually, they don’t seem like a big deal. But when you add them up, they can quietly drain hundreds or even thousands of dollars from your bank account each year.

Companies design these subscriptions to be easy to sign up for and hard to cancel. Many rely on the fact that customers will forget they’re even paying for them.

Instead of letting these small charges eat away at your wealth, do a subscription audit. Go through your bank statements and cancel anything you’re not using regularly. That extra money could be put toward savings, investments, or something that actually improves your financial future.

4) Upgrading your phone every year

Every year, a new smartphone hits the market with slightly better features, and every year, millions of people rush to upgrade—even when their current phone works just fine.

The problem? Those small upgrades come with a big price tag. Whether you’re paying upfront or through monthly installments, upgrading too often means constantly spending money on something that quickly loses value.

Instead of upgrading every year, try holding onto your phone for as long as it still works well. The longer you wait between upgrades, the more money you keep in your pocket—money that could be put toward things that actually build wealth.

5) Relying on credit cards to cover expenses

It starts small—a few charges here and there when money is tight. You tell yourself you’ll pay it off next month. But then something else comes up, and before you know it, the balance has grown, and the interest keeps piling on.

Credit cards make it easy to spend money you don’t have, but the reality is that carrying a balance can quickly become a financial trap. High interest rates make even small purchases cost way more over time, and the cycle of debt can be hard to break.

The best way to build wealth is to live within your means and avoid relying on credit for everyday expenses. If you can’t pay off your balance in full each month, it’s time to take a hard look at your spending and find ways to cut back.

6) Eating out too often

Grabbing takeout or dining at restaurants is convenient, but it adds up fast. What seems like an occasional treat can easily turn into hundreds of dollars spent each month—money that could be used to grow your wealth instead.

The reality is, cooking at home is almost always cheaper and often healthier. A meal that costs $20 at a restaurant can usually be made for a fraction of the price at home.

That doesn’t mean you have to stop eating out entirely, but being mindful of how often you do it can make a big difference in your finances. Try setting a monthly limit or reserving restaurant meals for special occasions. Your bank account will thank you.

7) Thinking like a spender instead of an investor

Most people focus on what they can buy with their money—new clothes, gadgets, or experiences. But wealthy people think differently. They see money as a tool for creating more money.

Every dollar you spend on things you don’t need is a dollar that could have been invested, earning returns and building your future wealth. The key difference between the middle class and the wealthy isn’t just income—it’s mindset.

If you want to become wealthier, start thinking like an investor. Before making a purchase, ask yourself: Is this going to grow my wealth, or is it just taking money out of my pocket?

Bottom line: Wealth starts with mindset

Building wealth isn’t just about how much money you make—it’s about how you manage it.

Many middle-class spending habits seem harmless, but over time, they create a cycle that keeps people from ever getting ahead. The difference between staying stuck and building real financial freedom often comes down to small, everyday decisions.

Research has shown that nearly 80% of millionaires didn’t inherit their wealth—they built it through disciplined financial habits and smart investing. The way you think about money shapes your financial future more than anything else.

Wealth isn’t about luck or having the perfect job. It’s about shifting your mindset, making intentional choices, and understanding that every dollar has the potential to work for you—or against you.