7 things lower-middle-class people waste money on just to look successful

You’ve probably seen it: someone who’s on a tight budget spends a fortune on the latest phone or a flashy new car…just to give off an aura of “making it.” 

I get it. In my early twenties, before I found my footing with a successful startup, I fell for the hype, too. I dropped money on “status items” I barely used. 

At the time, I thought I was “investing” in my future image. Looking back, though, it was mostly a crutch for an insecure ego. 

Here at Small Biz Technology, we can’t help but notice how this desire to “keep up appearances” can hold people back from genuine progress. So today, we talk about seven common ways people with limited means throw away hard-earned cash just to look like they’ve “made it.” 

If you find yourself nodding along to any of these, don’t worry—awareness is the first step to change.

01 Tech gadget ‘upgrades’

Ever wonder why there’s a line around the block whenever a new smartphone model drops? 

Tech companies know how to spark a sense of urgency and exclusivity. So even if last year’s model is working perfectly fine, many folks still feel the pull to upgrade for the bragging rights.

I’ve mentioned this before but letting your FOMO (fear of missing out) drive your spending can be a real hindrance to authentic growth. 

As Warren Buffett once noted, “If you buy things you do not need, soon you will have to sell things you need.” This is especially true for people living paycheck to paycheck.

There’s no shame in wanting to enjoy the benefits of the latest gadget—just be honest with yourself: are you shelling out hundreds (or thousands) because your current device is truly outdated, or are you trying to prove something?

02 Designer clothes and expensive watches

Did you know that some sources suggest that almost 20% of Rolex owners make just $2,000 to $3,000 a month? That means they’re dropping two or more months’ worth of income on a watch. Why?

People often justify these purchases by saying they’re investing in “quality” or “durability.” But let’s be frank—no one needs a $10,000 watch or a $2,000 handbag to tell time or carry their essentials. These items are status symbols, plain and simple.

Luxury brands thrive on exclusivity, making consumers believe that owning their products sets them apart. But if you’re stretching your budget thin just to flex a logo, who is really benefiting—you or the brand?

There’s nothing wrong with wanting to look good. But style isn’t about labels—it’s about confidence. A well-put-together outfit from affordable brands will always look better than an overpriced designer piece bought at the expense of financial security.

03 Fancy cars

Cars are a big one. 

I get the appeal of rolling up in a shiny new BMW or Mercedes—it feels powerful. But if you’re living in a cramped apartment or struggling to cover groceries, that sleek vehicle quickly transforms from a proud statement piece into a financial anchor. 

Maintenance, insurance, monthly payments, premium gas—it all adds up fast.

I once test-drove a luxury car just for fun (my startup was in a good place, so I figured, why not?). Sure, it felt cool, but the monthly payment could have funded part of my next business venture. Walking away was a lesson in priorities.

04 Lavish housing

Is there anything more symbolic of “success” than that dream home in an upscale neighborhood? 

Unfortunately, some individuals jump into mortgages (or rentals) that consume the majority of their monthly income, leaving them strapped for everything else.

I knew a couple who insisted on renting a luxury high-rise apartment just for the skyline view. I’ll admit that their Instagram posts were always fire, but the stress of covering rent meant they cut corners elsewhere—skipping insurance, racking up credit card debt, and rarely saving a dime.

The result? Constant worry. 

If you let external validation dictate your housing budget, you might end up sacrificing your genuine financial security.

05 Over-the-top celebrations

We all love a good party—whether it’s a birthday, wedding, or some random milestone. But sometimes, these events spiral out of control, leaving people drowning in debt just to put on a show.

Take weddings, for example. In 2024, the average wedding in the U.S. cost around $33,000. Meanwhile, the average annual income for people aged 25-34 (prime marriage age) was just $59,000. 

That suggests many couples are spending over half a year’s salary on a single day!

Of course, weddings are special, and celebrations should be memorable. But if paying for the big day means maxing out credit cards, taking out loans, or delaying important financial goals like buying a home or starting a business, it’s worth reconsidering.

A meaningful celebration isn’t about how much you spend—it’s about the people you share it with. So before splurging on a luxury venue, a designer dress, or a guest list that rivals a Hollywood gala, ask yourself: Are you creating lifelong memories, or just trying to impress people for a few Instagram likes?

06 Dining out and nightlife

Everyone likes to let loose once in a while. But dining at upscale restaurants regularly and hitting clubs every weekend can bleed your finances dry faster than you’d think. 

And it’s not just the cost of the meal or the drinks—it’s the cabs, the new outfit for the night, and sometimes those “special bottle service” splurges that nudge you into the red zone.

I’m a huge foodie, so I’m all for trying a nice steakhouse or sushi bar occasionally. The key word here is “occasionally.” If you’re doing it every week just to keep up appearances with your friend group, you might be throwing away money that could help you invest in a new skill or even a side business.

07 Quick-buck illusions

Finally, one of the more modern traps is the allure of flashy “hustle culture” investments—like rushing into day trading, crypto mania, or pricey online courses you’re not really committed to using. 

There’s nothing wrong with investing or learning new skills. But I’ve come across folks who throw money at get-rich-quick schemes because it feels like a shortcut to success.

Take the example of multi-level marketing programs that require you to buy inventory. People often stack up on products or pay hefty “joining fees” just to post pictures about their new “business venture.” 

If you’re genuinely invested, go for it. But if it’s all about claiming a CEO vibe on Instagram, you’re likely to end up deeper in debt than you started.

Wrapping things up 

I’m not here to judge, because I’ve made some of these mistakes myself. 

The key is to distinguish between genuine investments in yourself (or your business) and empty status symbols that chip away at your financial stability.

Real success isn’t about the brand of your car or the label on your shoes. It’s about building something meaningful and sustainable, whether that’s a thriving career, a business with a solid foundation, or a balanced personal life that doesn’t leave you panicking every time the bills roll in.

So the next time you’re tempted to splurge on something just for the social media kudos, ask yourself: Is this truly helping me grow, or is it just fueling an expensive illusion of “success”? 

If it’s the latter, maybe it’s worth skipping that purchase. Your future self will thank you.

Until next time, friends.