Feeling Wealthy? Be Wary

Next thing, you find yourself thinking, "I should be able to afford a better car," or better clothes, appliances, holidays, a bach, or whatever.

Is that good thinking? Maybe not. Economists call this the wealth effect. And there's been lots of talk about it lately.

Household net worth - assets minus debts - grew 10 per cent in the last year, the highest increase in a decade,...