Breaking the Generational Cycle of Poverty and Reducing Income Inequality

40% of all of our daily activities are daily habits. This means 40% of the time we are all on auto pilot. If we have good habits, life is good. If we have bad habits, life is bad. Think of a seesaw. On one side of your seesaw are your good habits and on the other side are your bad habits. If you have far more good habits than bad habits you will be rich. If you have far more bad habits than good habits you will be poor.

In wealthy households parents go to great lengths to teach their children good daily success habits. 74% of parents in my study taught their children good daily habits that they learned from their parents. These habits follow their children into adulthood. This is why the rich get richer. I refer to this as, “the generational cycle of wealth”. In wealthy households, the rich get richer and this pattern repeats itself from one generation to the next.

In poor households children are not taught good daily habits and in fact learn bad habits from their parents. 99% of poor parents in my study did not teach their children any of the good daily success habits I uncovered in my research. It’s not intentional. Poor parents never learned good habits from their parents. This is why the poor get poorer. I refer to this as, “the generational cycle of poverty”. In poor households the poor get poorer and this pattern repeats itself from one generation to the next.

So, in reality, parents are responsible for the wealth gap and income inequality in our country. Not Wall Street, the wealthy or government policies. This defies the current trend in our country that pushes an “I am a Victim” ideology. That ideology does nothing except keep the poor poor and get politicians elected.

So how do you break the generational cycle of poverty?  You have to change your habits and change your thinking.

Ten Keystone Habits That Will End Your Generational Poverty:

  1. Successful people have eliminated many of their bad daily failure habits and replaced them with good daily success habits. How? They self-assess by listing all of the bad habits that are holding them back in life and then try to eliminate each bad habit, one at a time.
  2. Successful people set daily, monthly, annual and long-term goals. They understand the difference between a wish and a goal.
  3. Successful people were taught by their parents to engage in 30 minutes a day of daily self-improvement, educational reading.
  4. Successful people are healthy people. They exercise aerobically 30 minutes a day, four days a week and stay below their “caloric threshold” (This is the number of calories consumed each day that will neither make you gain weight nor lose weight). For men this ranges from 2,000 calories a day to 2,600 calories a day. For women this ranges from 1,500 calories a day to 2,100 calories a day.
  5. Successful people manage their relationships every day. Strong relationships are the currency of the wealthy. They employ certain strategies to grow their relationships such as: “The Hello Call”, “The Happy Birthday Call” and “The Life Event Call”. They use a specific strategy to help them increase their Rich Relationships and eliminate their Poverty Relationships.
  6. Successful people live each day in moderation. They eat in moderation, spend in moderation, work in moderation and play in moderation.
  7. Successful people maintain a “to-do” list. They try to complete at least 70% of the tasks on their daily “to do” list.
  8. Successful people engage in “Rich Thinking”. They are upbeat, positive and focused on achievement. They believe poverty is a temporary circumstance and not a static or generational one.
  9. Successful people were taught by their parents to save a minimum of 10-20% of their income and live off of the remaining 80-90%.
  10. Successful people control their thoughts and emotions, every day. They understand that not every thought needs to come out of their mouth.

Failure, like success, is just a process. Our daily habits reveal which process we are following in life. Changing the process from failure to success requires that we change our daily habits from bad ones to good ones.


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Thomas C. Corley About Thomas C. Corley

Tom Corley is a bestselling author, speaker, and media contributor for Business Insider, CNBC and a few other national media outlets.

His Rich Habits research has been read, viewed or heard by over 50 million people in 25 countries around the world.

Besides being an author, Tom is also a CPA, CFP, holds a master’s degree in taxation and is President of Cerefice and Company, a CPA firm in New Jersey.
Phone Number: 732-382-3800 Ext. 103.
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