Morgan Housel° on lifestyle inflation:
Three points stick out here.
Wealth is what you don’t spend, which makes it invisible and hard to learn about by observing other people’s lives. Spending is contagious; wealth is mysterious.
Money is often a negative art. What you don’t do can be more important than what you actively do.
Everything has a price, and prices aren’t always clear. The price of exercise isn’t just the workout; it’s avoiding the post-workout urge to eat a ton of food. Same in finance. The price of building wealth isn’t just the trouble of earning money or dealing; it’s avoiding the post-income urge to spend what you’ve accumulated.
Morgan Housel’s blog is one of my absolute favourite finance blogs. In fact one my favourite blogs in general. You should subscribe to it and also probably read his book “The Psychology of Money”.
Permalink: https://blot.blog/2022/02/13/wealth-is-money-you-dont-spend/
