4 Purchases Keeping the Upper Middle Class from Getting Richer

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People Make With Their Money“As an attorney who advises high-net-worth clients on financial matters. The biggest drain I see is real estate spending,” said Lyle Solomon, principal attorney at Oak View Law Group. “Many clients stretch to buy luxury homes in prime areas, and mortgages consume 35 to 40% of their income — leaving no room for investment opportunities. One client’s $6,000 monthly mortgage payment could have generated $720,000 in returns over 10 years if invested instead.”That’s just one example of the spending that could be funneled into more money-building accounts. Below are the top purchases keeping the upper middle class from getting richer.“Many of my clients earn [more than] $200,000 annually yet struggle to build substantial wealth,” Kevin Shahnazari, founder and CEO of FinlyWealth.“New luxury vehicles are one of the biggest wealth drains I see among my upper-middle-class clients. My data shows that professionals often commit $800 to 1,200 monthly to car payments, with many trading in vehicles every three to four years.”He said one client realized they had spent over $175,000 on luxury car payments and depreciation over eight years. “Money that could have grown significantly through investment,” Shahnazari added.Solomon agreed that status vehicles are another wealth killer.“I see clients leasing [over] $80,000-luxury vehicles or owning multiple high-end cars,” he remarked. “These depreciating assets cost $1,500 to $2,000 monthly in payments, insurance and maintenance that could be invested.”Read Next: 6 Signs You’re Actually Upper-Middle Class (Even If You Don’t Feel Rich)Private school tuition without proper college savings planning creates another major wealth barrier, said Shahnazari. “Many families in my network pay $30,000 to $50,000 annually per child for private K-12 education while underfunding their retirement accounts and 529 plans,” he said.According to him, this double educational expense burden — current private school costs plus future college costs — can drain millions from long-term wealth accumulation.While education is important, Shahnazari said this often prevents maxing out retirement accounts or building investment portfolios. “Over 18 years, that’s a lot of wealth,” the expert added.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,782.75 +27.50 (+0.41%)Dow Futures47,261.00 +32.00 (+0.07%)Nasdaq Futures25,256.00 +162.00 (+0.65%)Russell 2000 Futures2,401.50 +5.50 (+0.23%)VIX19.83 -0.17 (-0.85%)Gold4,079.80 -14.40 (-0.35%)PortfolioSign in to access your portfolioSign inTop gainersCDTX Cidara Therapeutics, Inc. 217.71 +111.72 (+105.41%)SRRK Scholar Rock Holding Corporation 37.41 +7.34 (+24.41%)AVDL Avadel Pharmaceuticals plc 23.56 +4.32 (+22.45%)LGN Legence Corp. 40.27 +6.95 (+20.86%)CSIQ Canadian Solar Inc. 33.58 +4.96 (+17.33%)Top losersDGNX Diginex Limited 10.53 -2.97 (-22.00%)STUB StubHub Holdings, Inc. 14.87 -3.95 (-20.99%)HTFL Heartflow, Inc. 27.98 -2.96 (-9.57%)EOSE Eos Energy Enterprises, Inc. 13.80 -1.40 (-9.24%)CLSK CleanSpark, Inc. 10.96 -1.02 (-8.51%)Most activeNVDA NVIDIA Corporation 190.17 +3.31 (+1.77%)ONDS Ondas Holdings Inc. 7.18 +0.62 (+9.45%)OPEN Opendoor Technologies Inc. 8.12 -0.44 (-5.14%)TSLA Tesla, Inc. 404.35 +2.36 (+0.59%)PFE Pfizer Inc. 25.06 -0.73 (-2.83%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersBTC-USD Bitcoin USD 95,406.35 -324.98 (-0.34%)GOOG Alphabet Inc. 276.98 -2.14 (-0.77%)GOOGL Alphabet Inc. 276.41 -2.16 (-0.78%)GNS Genius Group Limited 0.8629 +0.0239 (+2.85%)ETH-USD Ethereum USD 3,169.27 -26.97 (-0.84%)Top economic events