What’s The Wealth Effect? (And Why It Matters To You) | DFI30

What’s The Wealth Effect? (And Why It Matters To You) | DFI30 | Ep. 439. When you think you're rich, you’re more likely to spend more. And when you’re not so confident about money, you may hold back and save. This is how the wealth effect works. But are there any risks to this effect? On today’s podcast Doug Hoyes and Ted Michalos give real-life examples of how the wealth effect works and why it may cause you unwanted debt problems if you’re not careful. Tune in for a great discussion.

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#Wealth #WealthEffect #Debt #DebtFreeIn30 #DebtFree #DFI30

[wandakay]

Mr. Hoyes and Mr. Michalos, thank you for producing these videos. I have viewed many (most!!!) of them and I get lots of information that I love to share with family and friends - often not welcome! However, I persist as the information you provide is practical and easily relatable.

[jason]

People have forgotten how important it is to save money and instead have the idea it is better to spend every penny they have on their house.

[jason]

I live in just outside of Windsor and prices here have already dropped 35 percent. I always knew Windsor was the most over valued city in Canada based on prices before the boom. I waited and saved all my money waiting for the downturn to take advantage of other peoples mistakes and greed.

[Iliinois]

Caught in the debt trap of thinking i was wealthy with the same cash flow....now I'm not feeling so wealthy ..

[sharinglungs]

Perhaps I’m the opposite but when I do well in the stock market and actually take profit I feel wealthier because I am. When I make big purchases I justify it by saying the profit in this stock or dividends plus has paid for this. I’m not taking on any debt but I guess I’m just different that way.