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Hi I own and have read both books and I didn’t get that feeling at all.
The way I understand it, is that the UAW’s get hung up on the luxury living while an overwhelming majority of the PAW’s realize you can live a VERY happy life well below your means.
For example, don’t you think I can be JUST as “happy” in a home that cost me $500,000 - $750,000 as I would a $5 Million dollar estate?
Of course I would. Many times in fact these PAW Millionaires even live in homes that only cost $200,000. But that doesn’t mean they’re not happy.
And one thing I DO know for sure is that they don’t live poor and desperate lives.
Although you do have one thing right: Most people with average salaries DO spend it…although not always on a luxurious life.
People with money don’t get there or stay there by spending it away.
It is normally the financially irresponsible that think you need the finest cars, homes, and material goods. The shallow try to live their lives through material means.
Being happy is an individual thing. Perhaps the person, with money, living in a 200k home and driving a 20k car is happy as can be because he/she can spend all the time with the family as desired, take family trips when the urge hits, etc.
Most people with no or little money will never progress past that point because of their poor thought process.
If you make $100k net profit this year, should you go out and buy a BMW? Or perhaps, let the money work and buy the BMW, if you really had to have it, later on.
Quality of life is not measured on the amount of depreciating items you have in your possession.
evergreen;
I read your statement and it seems you have an understanding of booksmart but realty is that all people are not equal to life or we would all be poor or rich, in which I think there is no more middle class.
Also I read your post and you should take the chance for investment as well as you give advice within your town, always remeber when starting out try to take small steps and save costs, going out of town is costly and remeber if its an hour away thats far enough for beginners. (solid advice)
savannah
…
I would explain and teach to anyone in there own language and begin that process that you both can relate too.
peace
savannah
As far as lifestyle you need to look at where you are. It costs the same to be poor everywhere in the USA. I travel a lot and I can find in every state hamburger for $0.99/pound, 5 pounds of rice for $1.50 a car for $4000 and a house to rent for $300/month. So it costs the same to be poor everywhere. If you want a good lifestyle, you have to live where it is cheap to be rich. I live in Houston and have a 3000 sqft house with a 27,000 sqft lot. It has a pool and home theater. I live the lifestyle of rich people, but my house appraises for $200,000. Yesterday I looked at a house that was 5000 sqft with an elevator that is for sale for $300,000. You can do it, you just have to approach your life just like you approach your realestate. You don’t ever overpay, and look for value. That should include the town you live in. If you want to live in Los Angeles you will live like a pauper, if you live in Houston, you will live like a rockstar.
bluemoon6
very well stated and good advice to all
savannah
Swirlaze,
It would be great if you could post your review here…
http://www.reiclub.com/real-estate-investing-books.php
Thanks.
Bluemoon06,
You are absolutely right. If only my wife would agree to move to Texas we could live like rock stars! She grew up in Venice Beach though, it really is hard to beat L.A., we love it here.
We have a very modest 1450 sq.ft. 3/2 home that’s worth $519K, bought it at $258K in '02. I am using my equity (after I paid off all of my debt, cars, and boat) to purchase investment properties.
My family and I are very fortunate and very happy. I have struggled over the years to change my thought process to incur good debt (REI) and eliminate bad debt. Though the California appreciation has helped!
I have read both books, I believe there may be some people that are extreme. Some people may be very happy living frugal.
I believe that the main point of the book is to emphasis that many people that seem to have a lot of money don’t. Those that create wealth do so using a more patient approach, without suffering the all too common “instant gratification through financing and incurring new debt” disease.
Not buying a new car when there is nothing wrong with the old one, not sizing up your home unnecessarily, and controlling all spending on clothes, jewelry, video games, etc. This will increase wealth and should leave a nice cushion if necessary.
It’s not how much money you make, it’s how much money you keep.
Andy Gibbs
That is so true,
I currently live in New York City, (The highest cost of living in the nation) I will probably relocate to Washington because of a recent
job loss. Does anybody know of a website that has a cost of living
indicator? I would like to move to another state with a low cost of
living. (Texas is TOOOOO hot) thanks in advance for any help.
Hey, Texas is too hot only about three or four months of the year!
The rest of the time it is just about right. Not much snow either.
http://www.homefair.com/homefair/calc/salcalc.html
http://houseandhome.msn.com/pickaplace/comparecities.aspx
http://www.bestplaces.net/col/col.aspx
http://www.monstermoving.monster.com/Find_a_Place/Compare2Cities/
Thanks Valgolas for that information.