I recently heard a quote from the book The Millionaire Next Door. from page 69:
Living in less costly areas can enable you to spend less and to invest more of your income. You will pay less for your home and correspondingly less for your property taxes. Your neighbor will be less likely to drive expensive motor vehicles. You will find it easier to keep up, even ahead, of the Joneses and still accumulate wealth.
also
If you're not yet wealthy but want to be someday, never purchase a house that requires a mortgage that is more than twice your household's total annual realized income.
So even though I am still working on the book Die Broke, I went to the library and put a request in for the aaudio CD's of the Millionaire Next Door.
Problem with living is less costly area is that often the wages go along with cost of living so the same job pays less in a low cost area than a it would in a high cost area. My area of Northern Illinois has some of the most affordable housing in the nation, but unless drive over an hour to the suburbs of Chicago, you will not see it the big money in your wallet.
ReplyDeleteI heard this book advertised on the radio. The advise of living within ones' means by buying a house in a less wealthy neighborhood is sound. That is my motto too. I wonder if my neighbors are secret millionaires.
ReplyDeletekeep up the good work!
sean