Why Most People Will Never Feel Rich – Even If They Are
Psychological Traps Sabotaging Your Wealth Vibe
You've got the house, the portfolio, maybe even a boat—but "rich" still feels like a fantasy. Why? It's not just the dollars in your account; it's the sneaky traps in your head and wallet.
As CPAs, we see clients with millions who still feel strapped. Here's why, plus fresh, practical ideas to make your wealth feel real.
1. The Dopamine Debt of "Just One More"
Every bonus or raise spikes your excitement, but it fades fast. Psychologists call this the hedonic treadmill: your brain craves the next hit of "more"—a bigger condo, a flashier watch. Neuroscience backs this: dopamine drives desire, not satisfaction, so "rich" always feels one purchase away. While the excitement doesn't last, the burden of subscriptions, payments, or mortgages often has you on the hook long after the enjoyment of the purchase.
Fresh Fix: Try a "wealth reset." For one month, review your spending and where your cash goes (including investments, retirement, insurance), and ensure this is in line with your current goals. Deep dive into your subscriptions- do you really watch enough Netflix, Hulu, Amazon, and obscure streaming platforms to make it all worth it? Consider freezing all non-essential spending and readjust your priorities and where you can direct the additional cash you'll save from doing so. That extra savings could go into an investment or paying down debt and further freeing up monthly cash flow. It rewires your brain to value impact over impulse.
2. The Social Media "Wealth Gap" Illusion
Your friend's yacht pics on X or a colleague's "humblebrag" about their vineyard getaway can make your seven-figure net worth feel like chump change. This isn't just envy—it's a cognitive bias called "anchoring," where you peg your success to someone else's highlight reel, not your reality.
Fresh Fix: Consider your own "wealth board" and find a way to visualize it. What does your money make possible—your kid's college fund, a secure retirement, a beloved vacation spot (not Aruba). Sometimes, having a way to review your investment and retirement accounts in one place can help anchor your worth in your goals, not someone else's flex. Our true enjoyment rarely comes from lavish expenses but the simpler things that mean most to each of us.
Financial Missteps Draining Your Riches
1. The Silent Wealth Killer: Opportunity Cost
Spending big on lifestyle upgrades—like that $100k kitchen reno—feels great but robs you of compound growth. Every dollar spent today could've been $10 in 20 years at a 7% return. That's opportunity cost, and it's why even high earners feel cash-strapped come tax season.
CPA Tip: Instead of splurging, funnel extra cash into a Donor-Advised Fund (DAF). You get an immediate tax deduction (up to 60% of AGI for cash contributions in 2025), and the funds grow tax-free while you decide which charities to support. It's a win-win: tax savings now, impact later.
2. Tax Blind Spots That Bleed You Dry
Overlooking tax strategies is like burning money. High earners often miss niche deductions or credits, like energy-efficient home upgrades (up to $3,200 in 2025) or Qualified Small Business Stock (QSBS) exemptions, which can exclude up to $10 million in gains from taxes if you invest in startups.
CPA Tip: Ask your CPA about a "tax loss harvesting" strategy. Sell underperforming stocks to offset capital gains, then reinvest in a diversified ETF. Pair this with a Backdoor Roth IRA conversion to lock in tax-free growth. These moves keep more money working for you.
Make Wealth Feel Real
"Rich" isn't a number—it's a state of mind and strategy. Quit chasing dopamine hits or comparing yourself to curated lives on X. Stop letting opportunity costs or tax oversights erode your gains. Before your next big spend, talk to your CPA about DAFs, QSBS, or tax-loss harvesting. Align your money with your legacy, and suddenly, your wealth will feel as big as it actually is.