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What Rich people Teach Their Kids but Poor Don’t

What Rich people Teach Their Kids but Poor Don’t

10 Things the Rich people Teach Their Kids that poor don’t

As we all know, the subject of money isn’t taught in schools. Most people learn the topic of money at home from their parents, but what our parents are teaching their kids about money.

What makes a difference between somebody who will eventually become wealthy and successful and someone who won’t?

So today let’s go over ten things that rich teach their kids about money that the poor don’t

1. Wealthy parents teach their kids the importance of money.

Wealthy parents teach their kids the importance of money, virtually all self-made millionaire or anyone who’ve achieved financial success believes that money is significant, and is one of the first things they teach their kids about money.

Wealthy parents often show how vital money is regardless of whether they believe money is essential for happiness or not. They know that money is essential to have options and a better quality of life.

 

Money is Not the most important thing

But 

it affects all important things

They only consider money as a resource and nothing else most rich people understand that money gives them freedom from the ability to choose their location for their next vacation to the freedom to decide where to live and even the ability to help others.

They know that they can have a less financially stressful life when they have an abundance of money, the poor on the other hand rarely talk about money and some even say that money is not essential this can affect their kids on the long term, because they will grow up in a financially driven society, while neglecting their financial life all because they think of money as not necessary.

2. Difference between assets and liabilities

They teach the difference between assets and liabilities. One of the most essential and basic concepts of building financial Independence is understanding the difference between assets and liabilities.

 

Liabilities vs Assets!

If you haven’t heard of these before assets are things that bring money into your bank account and liabilities do the opposite, they take money out of your bank account.

 

Assets put money into the pocket

and

liability take out money from your pocket

For example, if you buy a house, and you rent it out to someone, it is an asset because it brings cash flow every month in the form of rent. If you buy a home to live in then it’s a liability because it takes money out of your pocket every month many wealthy parents teach their kids to build them by asset and avoid obligations this way they can create a business or investments that generate cash flow on a recurring basis and avoid the things that create a negative cash flow on their bank account.

So they can have a surplus of money they also understand the power of using assets to detach your time from your income since assets generate cash flow whether you are physically putting in the work or not you can scale and use your time to develop more assets.

3. How to Manage Their Money

How to manage their money, an excellent way many wealthy parents teach their kids about money is by letting them into their planning and managing of their household expenses. Many of these parents include their kids when they go over their financial statements and plan their budgets; they often familiarize their kids.

On the reality of having living expenses, this gives their children the experience of managing money from an early age, which can help when they grow older, and they have to manage their own money, this is a big contrast to many parents with a poor mentality.

 

Rich people budgeting rule

The majority of parents rarely talk about money, especially their income; they typically plan their monthly budgets without their kid. If they even plan at all and often associate a negative attitude, when planning their monthly expense budget, often, parents argue and express negative feelings about planning their monthly budgets, causing their kids to take.

 

“The more your money works for you,

the less you have to

work for money.”

On similar planning patterns which translates to same behaviours later in life wealthy parents know that living expenses are a reality of the modern life and focus on associating good emotions on their living expenses as odd as that might sound.

Many people are grateful for those living expenses because it provides them with a roof over their heads and the ability to live comfortably.

4. Different Ways of Earning Money

The different ways of earning money, one thing that I’ve noticed many wealthy parents teach their kids is that different ways to make money did you know that the daughter of former President Barack Obama had a regular customer service job.

The key to making money is to stay invested

Many other wealthy people have their kids get a regular job there are a few reasons for this, but one of them is to be able to have the experience those different ways money is earned and teach them.

5. Developing Productive Habits

Developing productive habits, the Brits know that is not what you do that makes you wealthy but what you do consistently.

If the wealthy parents are self-made they know that in order to achieve financial wealth they must work and carry out their plans on a consistent basis is not just about taking action once or working hard, once but doing it over up her long period of time and the best way to do that is by building habits.

If you are going to achieve excellence

in big things,

you develop the habit

in little matters

Excellence is not an exception,

it is a prevailing attitude

Things that you come to do naturally, so many wealthy parents focus on developing productive habits on their children so they can attract wealth themselves more readily in the future this can be as simple as starting their day with a set of accomplishments or to always look at how they can bring value to others not only that but many wealthy parents teach their kids how to build their habits.

Learning how to build habits is one of the best skills anyone can have understanding the psychology behind modifying, your patterns can be compelling for our child’s long-term success.

6. No One Owes You Anything

No one owes you anything, self-made millionaires and those who got wealthy with their work know how much it takes to create wealth for them and there they see that they will only get, what they fight for and no one owes them anything.

This is especially important for rich people because in many occasions their kids grew up in a wealthy environment where they can feel like they deserve to have a piece of their parents wealth they understand that this sense of entitlement can be a massive disservice to their kids in the future and teaching a concept of earning your success becomes very important to them.

People Tend To Overestimate What Can Be Done In

One Year And Underestimate

What Can Be Done In Five Or Ten Years

Bill Gates and Warren Buffett, two of the richest men in the world have similar philosophies. They will not leave their kids with their wealth and will only leave them with a minuscule amount of inheritance, as Bill Gates said in an interview in 2011 they have to find their way they try to instil a sense of Independence and hard work so their kids can find their success.

7. Social and Influence Skills

Social and influence skills this is something that isn’t talked about enough in the financial and business world but is one of the most important. The ability to socialize and communicate with others can open up a lot of opportunities, that otherwise wouldn’t happen.

“People can’t hear what you don’t say. Thinking isn’t communicating”

The ability to create influence with those around you creates a sense of leadership installing that skill to understand people’s emotions, motivations and behaviours are early on can provide an incredible tool for the future setting kids up to be healthy and influential leaders.

8.Delayed Gratification

Delayed gratification, in other words, patience the rich understands that completing a massive goal, then building a business which makes you wealthy takes time and they must be patient while working hard at their craft and that is one of the skills.

“Gratitude helps you to grow and expand; gratitude

brings JOY and laughter into your life and into the

lives of all those around you.”

They often teach their kids that eventually their hard work will pay off. The majority of people prefer short-term pleasures like buying the nice car or the fancy house right away, or they might start a business and leave when it’s not profitable in the first year, and they pass down the same behaviours to their children.

9. There Is Always More Money

There is always more money an incredibly important mindset that the rich have is that there is still more. Most people think that there is a limited amount of money in the world, and that believe it translates to their bank accounts, while the poor might feel like there is not enough money to rich.

But there is always more money out there whether it’s to fund a new business or take a vacation they know that there is a lot of money out there and their job is to get it. The poor think that their salary is their financial limit and they will have to live under this commercial ceiling which is scarcity driven mindset, the original that there is no limit on how much they can earn and money is out there waiting for them to attract it.

Many people take no care of their money till they

come nearly to the end of it, and others do just the

same with their time

Which is an abundant mindset this is a simple concept that can play a significant role in our financial decisions? While most people focus on saving money and reducing cost the rich focused on increasing their income this doesn’t mean that the rich don’t focus on reducing the expenses, but they invest more time and energy in improving their cash flow.

10.Best way to make money

The best way to make money is to help others an essential lesson that the rich teach their kids is that the most powerful way to make money is to solve other people’s problems, and the bigger the problem, the bigger the paycheck.

Rich people solves the problem of others

It is no secret that the most successful people in the world have solved or at least aid in solving big problems in the world from Steve Jobs for revolutionary in the technology, music and communication industry to Henry Ford, for transforming the personal transportation industry to Oprah Winfrey for making a global impact in the self-development world.

“We can not solve our problems 

with the same level of thinking that created them.”

All made a massive impact in helping others solve a problem most poor people focus on getting paid based on tasks efforts and time while the wealthy focus on providing results and solving problems giving value is the rich person’s game and they get paid based on the amount of profit they provide in a bonus.

 

So, tell me below in the comment session, which lesson was you know already and applying in your life and also tell me is there anything else more to add-in it.

 

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