[quote=AN]. I was just debating the point that CAR tried to make, which is: [quote=CA renter]The one difference I’ve noticed between successful people and unsuccessful people (my definitions, not necessarily mainstream) is that the successful people have tended to avoid debt at almost all costs.[/quote]My point is, you need to take calculated risk and a lot of time, leverage to get you to the point of financial independence.[/quote]
Actually I’ve noticed the same thing as CA Renter. (Not to say that I haven’t met lots of successful people that leveraged as well). But I mostly work with high net worth and ultra high net worth individuals and families and ironically almost none of the clients I work with came from wealthy families or got inheritances.
Most of them are self made type people that started a business, work super hard and lots of hours and also avoid debt. This is not to say that these people didn’t utilize some debt to get ahead. Because most of us at some point in our lives (especially when we are starting out) have had to take on debt.
I can’t begin to speak for CA Renter but maybe the point she was making is these people that she knows really want to get debt free as soon as humanely possible. And once they get out of debt to stay out of debt.
I’ve also seen many yo yo types as she mentioned that start from nothing, get wealthy but then lose it all again. You will see several types like this even people like Donald Trump. Of course he is back on top but many people don’t come back on top again.
As Americans we are very spoiled because it’s so darn easy here to take on debt and get credit. I was amazed after graduating college that banks were lining up to give kids that didn’t even have a job yet tens of thousands of dollars or even over $100,000 in available credit. Heck, on my campus the University was even partnering with credit card companies to offer the students cards.
Student loans, credit cards, car loans, etc. All very easy here. Try going to some countries and you’ll see the credit just isn’t there. There are many cash based societies where it’s almost impossible to get a credit card. You want a car, you have to pay cash or VERY high interest rates. Or even people that want to buy an apartment or house must pay cash. As Americans we’re very spoiled.
Living abroad many years also opened my eyes to just how spoiled Americans are with credit. Many of my friends in other countries have to save up and buy a place once they have the cash. Of course they might have to live at home with mom and dad until they are in their 30’s but they do what it takes to buy things. No one is buying things unless they have the cash in many countries around the world.
In the USA, we mostly live in an “I want it now” society where we have to have the latest gadgets, ipads, iphones, computers, new car every few years, etc. I have had many employees in both the USA and abroad and in most cases my employees abroad made much less than my employees in the USA yet the net worths of those abroad that made much less money are much higher.
