I had a family member tell me recently that her feeling of wealth has almost nothing to do with the size of her portfolio. Long term savings are just numbers on a computer screen. Whether she feels rich or poor is driven by just a couple of things:
2. Cash in a regular bank account
This means that transferring money from her bank account to her RRSP makes her feel less wealthy. In a sense, the money is gone even though it is now poised to grow over time. On one hand, this all seems very irrational, but on the other hand I’m impressed that she understands herself quite well.
One consequence of her formula for feeling wealthy is that leverage is a problem. With leverage she’d have a large debt with no offsetting pile of cash in a bank account.
Have you figured out the drivers for your feelings of being rich or poor?