Did you know that the wealthy actually tend to live well below their means? According to Dr. Stanley’s research, this is what helps the affluent earn and maintain their wealth, while the less affluent have fallen into the luxury brand trap that prevents them from acquiring true wealth.
With that in mind, one of Dr. Stanley’s most important messages is “stop acting rich.” He’s written about this in his many books, spoken about it in countless interviews, and blogs about it on his site.
One of the best ways that Dr. Stanley says you can stop acting rich and start being rich is by purchasing a more affordable home. This is a statement that I completely agree with. Dr. Stanley says that many people judge the affordability of the home based solely on the purchase price, mortgage payments and tax. But this isn’t a completely realistic perspective.
Other costs that must be considered include: condo or homeowners association fees, insurance, utilities, alarm system monitoring fees, even phone and cable bills must be considered. And don’t forget repairs and upkeep. Painting, paving the driveway, even gardening all cost money. I never recommend to my clients that they become “house-poor” when buying a home and according to Dr. Stanley, it seems as though I’m providing sound advice.
Instead, purchase a home that allows you to live below your means. This will enable you to save money, invest in the market, should you choose, and build a nest egg that will be there for you when you need it. Enlisting the help of a financial advisor is a great step to building your wealth, and so is buying Dr. Stanley’s books. I’ve found them to be great reads and very helpful. I hope you do, too.