I think you guys/gals are convoluting two different points. One is creating wealth and the other is keeping wealth. Those are two different things. Leverage is good at helping you make more in a shorter period of time, but it won’t help you in keeping it if you’re spending more than you make. So, description of superficiality of Californian have nothing to do with creating wealth (leverage) but more to do with the ability to keep wealth (save what you’ve made). With regards to Yo-yo, I don’t know all the details but I’m sure different people yo-yo for different reason. Just because they yo-yo doesn’t mean they don’t know how to save. What if they’re just not always lucky and that’s the main cause of the yo-yo. I’m not going to sit here and judge them.

My main beef is CAR’s blanket statement that successful people tend to avoid debt at all cost while unsuccessful people don’t avoid debt. I can probably name at least 10 if not 100+ successful people who didn’t avoid debt at all cost for every one person you can name that is unsuccessful by avoiding debt at all cost. Also, for every one person you can name who yo-yo because of debt, I can probably name 100+ unsuccessful people who avoided debt (renters) who also live pay check to pay check.

I hate blanket statements. They’re always wrong, because there’s no way you can split the entire human race into two clean categories.