I just finished reading The Psychology of Money by Morgan Housel and I found this quote very interesting:
We tend to judge wealth by what we see, because that’s the information we have in front of us. We can’t see people’s bank accounts or brokerage statements. So we rely on outward appearances to gauge financial success. Cars. Homes. Instagram photos. […] But the truth is that wealth is what you don’t see. Wealth is the nice cars not purchased. The diamonds not bought. The watches not worn, the clothes forgone and the first-class upgrade declined. Wealth is financial assets that haven’t yet been converted into the stuff you see. That’s not how we think about wealth, because you can’t contextualise what you can’t see.
This is worth repeating “wealth is what you don’t see.”
For me, this was a quote I had to pause and think about because just about everything we buy loses value or deteriorates over time. So, when we purchase things [typically for our own ego’s sake], we end up with less money in the end.
Wealth is hidden.