What Is the ‘Wealth Effect’ and Why Does It Matter?

Much has been written about the trap of lifestyle inflation, but a related pitfall that can be just as dangerous, yet easier to miss, can ensnare you at the moment you achieve financial stability. Learn More: 6 Signs You’re Actually Upper-Middle Class (Even If You Don’t Feel Rich) Trending Now: 8 Subtly Genius Moves All Wealthy People Make With Their Money It’s called the wealth effect, and if you’re finally starting to gain a healthy financial footing, beware — it could be your hidden nemesis. Lifestyl ...