15 Lessons Rich Parents Teach Their Kids That The Poor Don’t

[Music] this is the sunday motivational video every Sunday we bring you a different type of video which should improve your life today we're looking at 15 lessons rich parents teach their kids that the poor don't welcome to a Lux calm the place where future billionaires come to get inspired hello a Luxor's welcome back to another exciting Sunday video this week we're taking a look at the differences in parenting employed by the rich in order to make sure their kids get a better shot at success in a long term this is something we've been interested in for a while especially since as time goes by we're considering having our own children and we most certainly wish to give them the right tools to get an advantage in life this video will benefit you no matter where you find yourself in life because you can still draw Amendola scens and advise the wealthy share with their kids so much to say that the right piece of advice provided early on or at the right time can make great differences in the long run if you are new here welcome be sure to subscribe and follow us on instagram at a lux so here are the 15 lessons rich parents teach their children that the poor don't number one understanding how money works while the poor remain financially illiterate this might sound basic to some of you but there aren't that many people who ask themselves how do people make money why am I being paid this much money by my employer what factors determine my salary or revenue how do taxes work can that be optimized what needs to happen to improve my finances rich parents usually make it a priority to discuss about the value and importance of money in their household as soon as possible this familiarizes kids from a young age with the concept of value in exchange for services provided they're introduced to the household expenses and put in real-life situations where they figure out pretty quickly that money is a lot harder to earn than it seems on the other end of the spectrum the poor never talk about money at home it's usually a secret how much money the parents earn or how that money is spent the only time the kids hear about money is when the parents are arguing about not having enough thus associating the entire concept with a negative feeling number 2 the difference between an asset and a liability the poor never know what's a good purchase and what's a bad purchase after poor people earn money they go ahead and spend it that's how you stay poor let us explain in as simple terms as possible an asset makes you money while a liability costs you money the problem here is poor people never realize what counts as a liability for example both the car you drive to the grocery store and the house you live in are liabilities they do not generate any revenue for you but demand money to keep running same goes with your new iphone fancy clothes your flat-screen TV and everything else you purchased without thinking while the rich focus all of their time and money on acquiring more assets buying an apartment that generates rent writing a book that generates revenue once it's completed purchasing a part of a business that's doing ok and more but a luxe most to rich people have fancy cars and fancy houses isn't that against what you're saying yes they do own luxuries but please pay very close attention because this is extremely important the assets pay for the luxuries rich people never buy luxuries from their own earnings want a fancy new car then figure out how to buy two apartments and use the rent from them to pay for leasing the car that way when you get rid of the car you still have money coming in this is a crucial difference in behavior when money starts coming in focus on buying assets instead of spending it number three they are not entitled to anything the rich know that the world can take everything away if they're not performing while the poor always look for someone else to take care of them being born in a wealthy family definitely has its advantages you have access to better tools better resources you don't have to worry about basic needs but you also open yourself up to new threats that poor people don't have to worry about there's a lot more to lose if you're not careful so the pressure is always on it's really important for the wealthy to teach their children that despite them getting a head start in life the journey ahead is just as long and they need to remain focused on growth not just maintaining the pace whether or not they'll be successful in life depends on their own actions and daddys money can only go so far family's fortunes where children feel entitled usually crumble in the third generation first there's someone who's really hungry and works incredibly hard to build wealth second their children grow as a sense that all they need to do is maintain the wealth lastly the third generation has lost its hunger feels entitled to success without work or sacrifice and usually spends it all stupidly teaching your kids the lessons from this video will help you to avoid this type of downfall number four how to be sociable and connect with other people you would think that more people would realize how important it is to be able to have a pleasant conversation with others successful people socialize their kids before the age of four not even kidding here's why if your child gets socialized that early other kids will want to play with them if they behave well with other kids other parents will want to take care of them when they play with their own children this has a massive snowball effect throughout life if people like you and like being around you this builds up and doors open up for you that otherwise wouldn't teachers will treat you better you'll get access to better job opportunities you'll make better friends so there's an entire tree of benefits that grows from early socialization we've learned this valuable lesson from dr. jordan Peterson's book twelve rules for life the book is between twenty and thirty five dollars depending on where you live but if you go to a Lux calm slash free book and sign up you can get the audiobook version for free you're welcome oh yeah poor people also are less likely to teach their kids to read because they themselves don't read number five stop expecting immediate results and avoid magical thinking we're so caught up in this instant environment we want to watch a movie Netflix you want to eat drive-through or order in want to have sex tender but most people don't realize that wealth and happiness don't fall into this instant category poor people expect to get rich quick to win a large sum of money or inherit property they have this weird expectation that their lives will somehow magically become better the irony is even if they somehow got their hands on a lot of money they're not educated enough to know what to do with it and eventually blow through it all rich parents make it a priority to teach their kids to play the long game long term thinking is one of the differentiating characteristics of the rich remember our video on the 15 things you can control in life in the bonus info there was a specific skill called trading with the future which the rich employ in order to get themselves an advantage over everyone else it's an incredible video filled with actionable insights check it out by clicking in the top right corner and something really interesting we discovered is how much progress you can make if you think about life in large batches of time say 5 10 20 years there's a really great quote from an interview Bill Gates did where he said most people overestimate what they can do in one year and underestimate what they can do in 10 years the year is almost over and that new year new me [ __ ] will make its way into your lives pretty soon but a lack sirs instead of planning for the next year why don't you start planning your next decade and maybe this time you'll do something about it number six how to create daily habits that on the long run give them incredible advantages one of the most valuable skills you can teach your child is how to create a habit for themselves habits are amazing and once you realize how valuable they can be your life changes it normally takes around 21 days to create a new habit and once you push through that 21 day limit you're off to the races that habit becomes a part of you you don't read enough transform reading time into a habit you want to get fit but never have the motivation to go to the gym make a habit out of it same goes for work if you make it a habit to organize and optimize your workflow large portions of your day open up for other things the rich use the power of habit to get ahead in life well the poor nurture toxic habits which lead their lives into ruin the power of habit is a tool that magnifies what you feed it the rich simply choose wealth creation actions as their daily habits while the poor picking negative routines careful what type of habits you instill in your child children learn from what you do not from what you teach them to do number seven money is a tool and it's a good thing how many times have you heard people say money is the root of all evil plenty huh all right think back to the person you heard saying it how successful were they how happy were they in their lives poor people blame their misfortunes on the lack of money in their lives and attribute an element of negativity to the concept of money this is because even when they get money it leads to more and more problems which they don't know how to tackle the rich do the exact opposite they understand that money is merely a tool which you use to navigate your life it's just pieces of paper and plastic with drawings on them which we exchange for material value nothing more nothing less stop taking money so damn personal and use it for what it was created for exchange it to make your life better it's very similar to scissors you can cut hair with them or you can stab yourself in the eye why people choose to do the latter is a major mystery to us once you start thinking of money like a tool the game suddenly changes and you'll stop harming yourself with it in the end number 8 increase income instead of lowering expenses one of the most valuable lessons a parent can teach their child is how to generate more money it takes the same amount of effort of work to barely survive or to make a fortune this might sound peculiar to some of you but it's the truth the difference is in the approach and the knowledge you use to back up that effort the smarter you are from a financial perspective the least amount of effort you have to deploy into the real world that's why Wall Street brokers earn so much more than miners who between these two do you think deploys the most effort poor people are always focused on lowering expenses as much as possible to the point that life almost isn't worth living do you think the rich care about buying a five-dollar coffee from Starbucks or not or spending $30 on a movie instead the wealthy put all their attention into increasing the amount of money flowing in if you radically increase your income there's always going to be large amounts of cash left over at the end of the month poor people teach their kids to lower expenses while rich people focus on increasing their income major difference combine that with lesson number two on this list and you have officially won the game of money number nine knowledge is more valuable than money in the long run there's another quote that we kept hearing a lot when we were getting started and it took a while to fully comprehend the true implications it had it goes like this invest in yourself it pays the best dividends sounds easy right but it has very little to do as going to school or reading books it has a lot more to do with increasing how valuable you are to the world the world rewards people who are valuable because valuable people can create value for others and in exchange for that value they can get whatever they want the concept of becoming a valuable person is not taught to their children by the poor even just a few of the wealthy bring it up when their child is growing but those who do see a higher probability of both success and Happiness there are many ways to become valuable from filling a position in the company to creating a product or service that people use to showcasing your talent to the entire world the more valuable you are the richer you'll become the only way to become more valuable is through the increase of knowledge skill level and time learn how to be better and then practice being better at it for long enough that you start to see noticeable differences it takes 10,000 hours to master anything that's why the rich have their children try a bunch of activities to get a head start on that number of hours someone who has knowledge will always be able to generate money because they are valuable to the marketplace the opposite is not always true sometimes knowledge can be too expensive to buy number 10 don't work for money have money work for you this is the centerpiece of how to get rich you can read as many books as you'd like go to seminars classes get an MBA whatever you want it's all based on this poor people exchange their time for money than spend it the rich use the money they get to create more money there are big differences in the approach to finance these two classes of people employ most people stay poor because they believe you need large amounts of money to invest otherwise there's no point while the rich are always looking for ways to add the smallest drop in the bucket of passive income they can find because it's not about the amount as much as it is about freeing up your time you can start a business these days with less than $100 if you know what you're doing or even for free as long as you're willing to put in the time as soon as you generate enough revenue use that money to pay for someone to do the things you used to do to keep that business running as you focus on growing and other things the concept of passive income and understanding how to use money to generate more money is the foundation to any wealth building strategy whenever anyone new asks us what's the first book anyone should read if they want to be rich we always answer with Rich Dad Poor Dad by Robert Kiyosaki it's the first financial book that made a difference in our actions and beliefs when we were starting out you'll find it translated into every language out there if you haven't read it we strongly urge you to pick it up as soon as possible if you don't want to buy the book at least go to a LOX com slash free book and sign up to get the audio version for free it is such a valuable book number 11 solving problems is the quickest way to get rich something the rich are quick to teach their children is the fundamental difference between getting paid and getting rich let us explain poor people get paid to take care of something someone else needs done for example deliver the newspaper wash the car answer the phone and more single activity jobs where you basically do the same thing over and over again the rich never do repetitive work because it's easily outsourced instead they focus on the big problem the bigger the problem you fix the richer you get that's how delivering the newspaper became content websites same results less hustle answering the phone became automated messaging which by the way Google has a new AI that will likely end the job of receptionists for good now let's take three iconic modern entrepreneurs Elon Musk Mark Zuckerberg and Jeff Bezos they all got super rich by solving problems for Humanity and creating products and services to serve that mission people will pay money for you to solve their problems teach your children that and they're off to the races number 12 not to waste time on things that do not correlate to the real world sorry to break it to you but nobody sees value in your ethnic or Gender Studies degree same goes for majors and degrees in journalism film and media history or fine arts to be honest we feel like the entire educational system right now is pretty messed up they're just repeating to you the same things that used to make sense a while back with blatant disregard for the future you're basically getting into massive debt over skills that one do not have a direct correlation to the marketplace you'll be performing in once you graduate and two if you are really passionate about any of those topics and put in the time to master them you have a better shot at making it on your own anyway we're lending money we don't have to kids who will never be able to pay it back for jobs that no longer exist that's crazy right that's what we've been doing for the past 40 years number 13 how to use good debt instead of bad debt like support ooh yeah there are two types of debt bad debt makes you poor while good debt makes you rich did your parents ever mention this to you when you were growing up probably not it's one of those lessons that the rich have figured out a long time ago other people and institutions will actually help you to get rich quicker if you know the difference between those it's all about the purpose of the debt poor people take out loans with the purpose of spending the money on liabilities they borrow money to get a new car to get a new phone to cover the necessities the rich only borrow money with the purpose of generating more money banks and investors love to lend money to this kind of project as long as you can clearly explain to them how your money will be safe and how you'll be able to pay it back that's how people build skyscrapers they don't pay out of their own pocket for the building not even for the land it's all borrowed the bank is certain that you'll be able to sell or rent the building and is willing to take that risk with you you just have to prove you know what you're doing and you've done this successfully in the past number fourteen 80% of the results come from 20% of the effort rich parents do not want their kids to be top of the class shocker right it has to do with the 8020 rule also known as the pair 2 principle or the pair 2 distribution which states that 80 percent of the outcome is the result of just 20 percent of the action in business 80 percent of the revenue comes from only 20 percent of the customers 20 percent of your employees basically do 80% of the work and so on this is a mathematical ratio that's been proven to be quite accurate in almost all enterprises and in life in general back to why rich parents don't want their kids to be the first ones in class it takes too much time and effort to improve with the smallest deviation you would need to dramatically increase the time you put in which doesn't leave enough for your real-life education there's more value to take out of experimenting in the real world than being inside and studying all night just to get 5 or 10 percent more on your exam we first discovered the 8020 rule in Tim Ferriss book the 4-hour workweek and to be honest we've been leveraging that concept ever since there's also another book called the 80/20 principle that's focused exclusively on this concept by Richard Koch you can get one of them for free when you sign up at a lakhs comm slash free be' between us we recommend the 4-hour workweek it's way more fun number 15 having money doesn't make you a better person it just solves some of the problems surprise surprise when you're thinking of rich kids you probably picture snotty arrogant pricks who believe that just because they have money they're better than everyone else that's not usually the case unless you inherit that money you probably works your butt off to get to where you are in life on the road to riches you got to understand how valuable humility can be and most rich people are very humble individuals because they never forget where they came from these values don't get lost humility and respect for others are some of the first lessons rich parents teach to their children because they know what it feels like to be sitting on the other side you should never be ashamed of having money or being successful it's actually something you should celebrate a lesson most people figure out too late in life is you can't buy a clear conscience no matter how much money you throw at it money pays for comforts of the body but not for comforts of the mind and soul we did two videos a while back where we went deep into what money can and can't buy we recommend you watch those immediately after this one if you haven't seen them already there's so much value in those videos you know what even if you did watch it when we originally posted them because you probably missed a few things which you only now will be able to notice click in the top right corner to go there now okay the question we want to leave you with is what lesson did your parents teach you that served you well in life if you're so kind please leave it in the comments for other people to benefit from we'll make sure to reply to those who we find the most interesting you know we actually read those comments right okay now here's your bonus fact for sticking around until the very end number 16 to raise their expectations want your kid to live a better life than you have teach them how to not put up with [ __ ] and raise their expectation some people say that the secret to happiness is lowering your expectations in order to achieve them well the secret to financial success is to raise them and then hit them the majority of people settle for mediocrity never take big risks for big wins the competition might be fierce at the top but there are definitely fewer players involved think of it like this would you rather have low expectations and meet them or would you rather fall short of the highest expectations possible if you compare both results you're definitely better off with the latter now if you've watched up to this point of the video please use the word risk in your answer to today's question just to keep things interesting see you in the comments true a lack sirs thank you for spending some time with us a Luxor's make sure to LIKE and subscribe so you never miss another video we also hand-picked these videos which we recommend you watch next thank you for being an a lexer and we'll see you back tomorrow [Music] you

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Views: 1,545,502

Rating: 4.8569627 out of 5

Keywords: Alux, Alux.com, luxury lifestyle, luxury cars, fastest cars, fine living, most expensive, money, debt, kids in school, children learn, life lesson for kids, benefits for children, money and children, assets and liabilities for kids, learn networking, learn appreciation, learn patience, how money works, rich parents vs poor parents, rich parents teach their kids, rich kids, study about success, learn about money

Id: KcCG_zdAu6Q

Length: 24min 47sec (1487 seconds)

Published: Sun Oct 14 2018