When everything looks great on paper, and you’re still not satisfied

In stocks, paper gains mean nothing until you cash out. In life, paper happiness is just as different from real happiness. Here’s how to start feeling rich in your own life.

A paper gain is an, “Unrealized capital gain (loss) on securities held in a portfolio based on a comparison of current market price to original cost.”

For example, if you bought a share of stock for $20 and it rose to $25, you’ll have $5 in paper gains. If you sell your share of stock for $25, you’ll have $5 in actual capital gains. (In layman’s terms, you’ll have made $5 pre-tax. Congratulations!)

The key: In order for a paper gain to turn into an actual gain, you need to sell your share of stock. In order to sell your share of stock, you have to be willing to cede ownership of it; if the share increases in value, you won’t be able to sell it.

Let’s say the share goes up to $30 tomorrow; you won’t be able to sell it for $30, since you sold it for $25 the day before.

If you keep holding stock in a good company, it’ll probably keep increasing in value. However, you’ll never see the actual money in your bank account; you’ll want to keep holding it. You’ll never be able to spend the money either; it’s locked up in the stock.