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Posted: 11 Jan 2017 02:05 AM PST
Warning: This is NOT a political post, so do not turn it into one. I'm simply highlighting a statement from a very wealthy individual/family which demonstrates a solid financial principle.
One of the blogs I regularly read pointed to this article which features a story about Ivanka Trump.
She said she learned a valuable lesson about money when she was 14. Her mother booked a trip, reserving coach seats for Ivanka and her brothers. Her mom had a first class seat.
Ivanka's mother told her she could use her own money to pay for an upgrade if she wanted to sit in first class.
Now here's the gold nugget. Here's what Ivanka said she learned from the experience:
"Be judicious when deciding where and how to spend your money. Invest wisely and splurge selectively.”
As long as you make a relatively decent income, you can buy what you want as long as 1) it's in moderation comparable to your means and 2) select what to spend on and what to save on.
To me, this is EXACTLY the formula to apply so you both control over-indulgence but also spend on what you want to so you can enjoy life.
I think it's best described as moderate and selective frugality and even the top 1% of the top 1% (like the Trumps) use it.
Perhaps this is one way they built their wealth...
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