7 Money Lessons Rich Parents Teach Their Kids That the Poor Don’t: Have you ever wondered that why rich people get richer and poor people gets poorer? Why is it so difficult for a poor person to get rich, but on the other hand, rich people know how to earn well no matter how adverse the situations become? There are a lot of things that we hear on the daily basis that how to become rich and how to earn money, but the answer lies behind the parenting of us. Rich becomes richer because he is taught by his parents about to how to be rich and this is what a poor person misses out on.
Today, we are going to see 7 such lessons which only a rich parent teaches to his child. These lessons can help you become financially free. So let’s start with them.
1. Understanding how money works
Most of the people don’t even know that how money works and they expect to be rich. In our schools we are taught about a lot of different subjects including history, science and many more but what about money? No one teaches us about how money works and how can we earn it? All we know about money is that we need to study hard, get good grades and then get into a good job to earn money. But there is a lot more to it. You can be financially rich only when you will learn about the functioning of money, taxes and a lot of other terms.
2. Difference between an asset and liability
Rich becomes richer because he invests in his assets and poor people will always spend their money on liabilities. Assets are something which are a part of your wealth and you can sell them off to have your money and on the other hand liabilities are those which are not earning you anything and in fact is asking you to put more money in it. When you sell a liability you get into more losses. That is why a rich person invests more in his assets and avoids the liabilities.
3. Daily habits to make more money
Money is something which is not generated over night. It requires a lot of time and discipline. Discipline will come only when you will good daily habits. These habits involve saving money on a daily basis, keeping track of all the money that is coming in and all the money that you are spending. Just by indulging yourself in these good habits, you can create a lot more wealth.
4. Money is not an evil, it is good
A lot of times you must have heard people saying things like money is bad or it is the greatest evil. But this is not correct. As money is very important and is really very good. After all you need money to get your internet recharge done. You need money to have the food you like. You need money for every single thing, that it would be wrong if you call money as a bad thing. Hence, instead of calling money as a bad thing, start planning to earn more money.
5. Increase income instead of lowering your expenses
You will never find a rich person compromising with his standard of living. You will always see that a rich person would not think twice before buying a thing that he likes and on the other hand a poor person would think a lot of times, before buying anything. This is because there is a difference in their mindset. A poor thinks how will I buy this thing and the rich will say let me figure out a way to buy this. This is a difference. Instead of lowering your expenses and trying to save money, try to increase your income and buy all the things you always wished to buy.
6. Solve Problems to get rich
If you want to get rich, find a problem that you can solve. People will always pay to the person who can solve any problem of theirs. You need to find out what that problem is, give the solution and charge for it. This is most people get rich quickly and you can get rich too.
7. Let money work for you, instead of you working for it
A lot of people have now become the slaves of money. They spend their life running behind it and finally die poor. On the other hand, a rich person will always use his money to earn more money. For example: If you can work 8 hours a day, this means you are working 8 hours a day. But if you hire 3 people who can work for you 8 hours a day, this means that you are working 24 hours a day. So always make sure that you use your money wisely and let it work for you. You need lots of money To live a better life.
Start working on these 7 tips and see your wealth increasing by many folds.