A study conducted among consumers who make over $100,000 a year reveals that, surprisingly, majority of them do not own luxury cars, and they shop at mainstream stores like Target and Walmart.
The reason being is that they recognize the value that long-term investing can have over frivolous spending. The one thing that virtually every millionaire and billionaire has in common is that they set aside wealth for an investment account.
If you're struggling to give up overspending, consider the 20-30-50 Plan: spend 20 percent of your paycheck on investing (or paying off debt), 30 percent on fun and the other half on necessities (like rent).
The bottom line: By shedding the dead weight and giving up unnecessary things in you life, you exponentially increase your likelihood of success.
Elle Kaplan is the Founder and CEO of LexION Capital, a fiduciary wealth management firm in New York City serving high-net-worth individuals. She is also the Chief Investment Officer and Founder of LexION Alpha.
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