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Wealth Is What You Don’t See
(Chapter 9)
“Someone driving a $100,000 car might be wealthy. But the only data point you have about their wealth is that they have $100,000 less than they did before they bought the car.”
“Wealth is financial assets that haven’t yet been converted into the stuff you see.”
Housel reminds us that when people say they want to be millionaires, what it really means is that they want to spend a million dollars.
Spending a million dollars is “literally the opposite of being a millionaire.”
Difference between wealthy and rich:
People who live in big homes and drive fancy cars are rich. People with big incomes are rich. They display the fact that they are rich.
Wealth is hidden. Wealth is income that is saved, not spent. Wealth is optionality, flexibility and growth. Wealth is the ability to purchase stuff if you needed to.
Embark on a voyage of wisdom with Vineet Patawari, the innovative CEO of Elearnmarkets & StockEdge! Explore the intriguing "Psychology of Money" on YouTube.
Michael George Knight
This book summary has been contributed by Michael George Knight, who is the founder of Bestbookbits.com Bestbookbits is the world's largest free book summary website in video, written and audio format educating people around the world with the best book bits in the shortest amount of time. They are a nonprofit organization with the mission to create an educated world. You can read many other book summaries on various genres by clicking on the following link: Bestbookbits.com