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The formula for how much home to buy, from 'The Millionaire Next Door' - Business Insider

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In TheMillionaireNextDoor, Thomas J Stanley offers a simple formula for buying a home for anyone who wants to make their money go further

that the rules around how much to spend on a home have changed in recent years.

"Living in less costly areas can enable you to spend less and to invest more of your income," Stanley wrote. That may not mean a drastic change, like leaving the West Coast for the Midwest. It could be as simple as moving to a more affordable part of town.

 

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We paid off our 30 year mortgage in under 3 years cause my wife hates having loans. We bought our current home in 2000 and certainly couldn’t do that today as our home would be now 3X what we paid in 2000. It is true the Millionaire Next Door avoids debt.

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