I remember reading it initially some time ago - and visiting it anew I'm surprised how high the multiple is. In my head it was "10% - 25% higher".
My personal hunch is too many of us "shoot just too high" in terms of what we can afford, be it housing, cars, whatever.
Granted there are plenty of disciplined individuals and families out there and it's certainly not impossible to live within one's means.
But human nature is what it is - why "settle" for a $400,000 home when the bank will give you a mortgage for $500,000? Why settle for a Ford, VW or Toyota when the car finance payment for a BMW or Merc are just a little bit higher each month?
