Khan
Gone but not forgotten
- Joined
- Aug 23, 2006
- Messages
- 6,924
Here's a quote from Dr. Stanley's blog today, more preaching to the choir, but at least this will give you something to quote the next time someone asks you why you don't own x or y or z.
The reason why so many homeowners today are having a difficult time making ends meet goes way beyond merely mortgage payments. When you trade up to a more expensive home, there is pressure for you to spend more on every conceivable product and service. Nothing has a greater impact on your wealth and your consumption than your choice of house and neighborhood. If you live in a pricey home in an exclusive community, you will spend more than you should and your ability to save and build wealth will be compromised.
My research has found that most people who live in million dollar homes are not millionaires. They may be high income producers, but, by trying to emulate the real millionaires, they are living a treadmill existence. In the U.S., there are three times more millionaires living in homes that have a market value of under $300,000 than there are living in homes valued at $1 million or more.
I live in a small house in a blue-collar neighborhood; no pressure to upgrade/show off.