Sunday, July 8, 2007

Neighbourhoods for millionaires

When a pair of academics wanted to learn how people became wealthy, they started surveying people in high status neighbourhoods; however, they soon discovered that many people who live in expensive homes are not necessarily rich. In fact, many people of high net worth do not even live in high class areas! Following over 20 years of diligent research, Thomas Stanley and William Danko, authors of best seller “The Millionaire Next Door”, discovered that more than a half of millionaires in America do not live in upscale places.

They say that the three words that most important describes the affluent are: ‘frugal, frugal, and frugal. Their recommendation: living in a high status neighbourhood goes together with an expensive lifestyle; it is easier to accumulate wealth if you don't live in one.

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