2723: When Wealth Isn’t Real by Nick Maggiulli of Of Dollars and Data on Personal Financial Habits
Optimal Finance Daily - Financial Independence and Money Advice
Reevaluating Asset Values and Avoiding Disappointment
The snip highlights how individuals often overvalue their assets, such as homes, cars, and possessions, based on estimates like Zillow's zestimate or Kelly Blue Book value. In hot real estate markets, people tend to inflate the worth of their homes, leading to likely disappointment if they sell. The speaker gives an example of a neighbor who believes that spending money on home improvements increases the home's value dollar for dollar, which is not accurate. This tendency to overvalue extends beyond homes to include other possessions like furniture and collectibles that hold sentimental value. The snip serves as a reminder for everyone to critically evaluate the true value of their assets to avoid being disillusioned when it comes time to sell.
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