Is your next door neighbour in London Ontario wealthy?
How would you know or do you even care? Is it the largest house, the most toys, the fanciest cars, the exotic vacations, their job, title or profession?
Is it appearances? Is it perception? Is it frugality? Is it cheap?
In the first paragraph in a book called “The Millionaire Next Door, The Surprising Secrets of America’s Wealthy “ by Thomas Stanley and William Danko, these two researchers wrote:
“Twenty years ago we began studying how people became wealthy. Initially, we did it just as you might imagine, by surveying people in so-called upscale neighbourhoods across the country. In time, we discovered something odd. Many people who live in expensive homes and drive luxury cars do not have much wealth. Then we discovered something even odder: Many people who have a great deal of wealth do not even live in upscale neighbourhoods”.
As a Broker of Record and an owner of a real estate boutique in London Ontario, I do a fair amount of volume and get to see lots of houses and neighbourhoods in London, and after all these years, I have the opportunity to keep shaking my head!
I get to see first-hand; people who are mortgage poor, have high credit card debt, have depleted lines of credit as well as mortgage-free homeowners, own free and clear economy transportation, are usually debt free and in most cases, free from that regular day to day money fears.
The first group continues to spend, working harder and longer to help lenders get wealthy and waiting for someday to retire and be debt free!
Every calendar I have ever seen has seven days on it, I have never seen ‘someday’ on one yet!
Downsizing is not just for old folks, baby boomers or mobility challenged individuals. The hardest part for most people is worrying about what their family, friends and co-workers will think.
Maybe, just maybe, they too are treading water or sinking (both are very similar ) as well!
Note: This is not intended to disparage anyone, criticize or sound like a doomsayer, I am quite energetic and positive about life and have lived and experienced both sides of the scale! Only one side has the financial & time freedom, and it now will depend on what price you are willing to pay to find out on which side that is.