RE: RE: When having more wealth costs you money, and how to budget for it.
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RE: When having more wealth costs you money, and how to budget for it.

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5y

Increased expenses because of increased wealth manifests on the individual's side as well. When people have more wealth (in real estate, equities, crypto), they are more comfortable spending more of their cash and income, even though they don't have more money in cash or income. They call this the “wealth effect.” And it's devastating to one’s net worth.