Too many people are broke in their forties. This isn’t because their isn’t enough money to go around. It is because they were not taught what rich people teach their kids. I have read many books and seen too many YouTube videos to count when it comes to money and how The Rich earn it. I have also heard of many things rich people teach their kids about money. Of all I’ve heard, I have narrowed it down to five things that stand above all others. The good thing about these five recommendations is that you don’t have to be rich to teach your children these things. Hell, you may even learn some things you didn’t know. Either way, start sharing these with your kids now if you don’t want them struggling for money in their forties!!!
1. The Difference Between Assets And Liabilities
Rich people teach their kids the difference between assets and liabilities. Assets are anything that puts money in your pocket. Liabilities are anything that takes money out of your pocket. The Rich push their kids to buy assets. Assets include things like real estate, rental properties, stocks, and bonds. Poor people tend to spend their money on liabilities. The Rich teach their kids that assets are the way to go.
2. Success Is A Product Of Diligence
Rich people teach their children that wealth comes from a disciplined, persistent work effort. It takes a lot of work and sacrifice to become rich. The Rich teach their kids that they have to give up some immediate enjoyment now for a greater future. The Rich understand it takes time to become rich. Poor people dream and wish to become rich overnight. This is why lotteries and gambling is so popular.
3. Good Habits That Lead To Success
Rich people teach their children the kinds of habits that lead to success. There is no argument against the fact that most rich people read on a regular basis, if not every day. They teach their kids to read daily too. Other good habits include: waking up early; having quiet time to think and reflect; and saving money. Most people who are poor resign theirselves to fate and simply hope good things will happen. Jim Rohn use to say, “Things don’t just happen. Things happen just.” Teach your kids the good habits to have that can lead them to success and watch “things happen just.”
4. To Invest
Rich people teach their kids to invest their money where it can make more money. Kids need to invest their money in their areas of interest rather than spending it on the latest iPhone, gaming console, or fashion. Money invested that makes more money teaches kids how their money can grow. Once you can show money growing, it is like your kids have their own money tree. People who are poor do not invest, nor are they ever taught by their parents. They spend their money for immediate enjoyment and forego the long term benefits.
5. Encourage Multiple Streams Of Income
Rich people teach their kids to have multiple streams of income. What’s better than one way to make money??? Duh…at least two ways to make money. The Rich also teach their kids to not stress over the expenses associated with building multiple streams of income. There are times you have to spend money to make money. The Rich teach their kids that this is part of the process. People who are poor work to decrease their expenses rather than build wealth.
These are the top five things that I believe we need to teach our kids if we want them to be successful and wealthy in life. Unfortunately, I did not have the luxury of being taught this as a kid, as my parents’ parents never taught them. I have learned these ideas over the years and am sharing them with my kids now. It is up to them to listen and to act. In the mean time, I am going to continue doing the right things and preaching the right things to my kids. Hopefully something will sink in. I wish you the best of luck sharing these ideas with your kids.