You said, in part: We concentrated on living within our means.
***
That comment nails it. We are working hard to teach our children about living BELOW your means. We were a two-income family making around $70K 18 years ago. Realtors were point us to $250K and higher homes, which, technically, we could have afforded. We scaled back, got our home for around $116K (2200 sq. feet, with unfinished basement). We took a 15 year mortgage, refinanced once and got it paid for a couple of years ago. Our incomes have increased substantially over the years, but we have remained happy with our home, making improvements along the way, but nothing exhorbitant (wood floors, screened in porch, etc). I guess we could sell the house for over $200K, but to what end? Buying a more expensive home and getting a new mortgage? Except for one person, everyone makes less than SOMEONE else. Someone will always have a bigger, better home, car, etc. We are fortunate that while we are not wealthy, money is not much of an issue for us, because we try not to want what others have. It has made for a contented life. We can get most things we want. We should be able to put our boy/girl twins through college, and retirement is looking feasible at age 65 or before.
I'd rather have a modest home to where I can still afford savings, vacations, and FURNITURE.
I have been in many homes where the people bought this huge house but can't afford to furnish it.
The mortgage payment I qualify for and what I'm comfortable paying differ by about $1000 a month. If I took the max I qualified for, I'd be living on ramen noodles and never leaving the house after work-and still broke after paying the bills.
Exactly. The best financial advice came from Dickens' Mr. Micawber (if only he had followed it himself...):
""Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."