Will Your Child be Rich or Poor and What You Can Do About It | Rich Habits Poor Habits Podcast

If you’re a parent or a grandparent or planning to become one, this show is for you.

I believe it’s our job to teach our children good money habits.

And even if you’re not planning to become a parent, Tom Corley and I will be discussing some important money lessons in this Rich Habits Poor habits podcast.

So let’s talk about children….

Science shows that by the age of nine we have learned most of our habits.

These habits come from our parents.

We mirror our parents thinking, habits, and emotions.

The beauty of rich habits is that you only need one or two of them to transform your life.

Habits like reading and exercising will change your future.

But emulating bad habits can force you into a situation where you have to eke out a living.

It gets even worse

Sadly, 74% of children raised in a poor household had grades below a B and 34% had grades below a C.

Why?

Wealthy, successful parents teach their children certain success habits that give their children an edge in life.

These Rich Habits, which give them this edge in life, begins to manifest itself in the classroom and continues into the workplace, where such children become working adults who receive higher pay, bigger raises and larger bonuses during their working career.

As a consequence, they accumulate more wealth in life.

Will your child be Rich or Poor?

Every student wants to be successful and thinks they will be successful, but none have been taught by their parents or their school system how to be financially successful in life.

Not only are there no courses on basic financial success principles but there are no structured courses teaching basic financial literacy.

We are raising our children to be financially illiterate and to fail in life.

We don’t have a wealth gap in this country we have a parent gap.

We don’t have income inequality, we have parent inequality.

Parents and our schools need to work together to instill good daily success habits.

They need to be teaching children specific Rich Habits that lead to success.

Examples of Rich Habits:

  • Limit TV, social media, video games and cell phone use to no more than one hour a day.
  • Require that children read one non-fiction book a week and write a one-page summary of what they learned for their parents to review.
  • Require children to aerobically exercise 20 – 30 minutes a day.
  • Limit junk food to no more than 300 calories a day.
  • Teach children to dream and to pursue their dreams. Have them write a script of their ideal, future life.
  • Require that children set monthly, annual and long-term goals.
  • Require working age children to work or volunteer at least ten hours a week.
  • Require that children save at least 25% of their earnings or the monetary gifts they receive.
  • Teach children the importance of calling family, friends, teachers, coaches, etc., on their birthday
  • Teach children the importance of calling family, friends, teachers, coaches, etc. when anything good or bad happens in their lives. Examples include births, deaths, awards, illnesses, etc.
  • Teach children to send thank you cards to individuals who helped them in any way. Reassure children that mistakes are good and not bad. Children need to understand that the very foundation of success is built upon the lessons we learn from our mistakes.
  • Discipline children when they lose their temper, so they understand the consequence of not controlling this very costly emotion. Anger is the costliest emotion. It gets people fired, divorced and destroys relationships.
  • Teach children that the pursuit of financial success is a good thing.
  • Children need to learn how to manage money. Open up a checking account or savings account for children and force them to use their savings to buy the things they want. This teaches children that they are not entitled to anything. It teaches them that they have to work for the things they want in life, like cell phones, computers, fashionable clothes, video games, etc.
  • Require children to participate in at least one non-sports-related extracurricular group at school or outside of school.
  • Parents and children need to set aside at least an hour a day to talk to one another. Not on Facebook, not on the cell phone, but face to face. The only quality time is quantity time.
  • Teach children how to manage their time. Teach them how to create a daily “to do” list. They can put their “to-do” list on their bedroom door, so parents can check it each day.

OBVIOUSLY, IT IS NOT POSSIBLE TO FOLLOW EVERY RICH HABIT RECOMMENDATION LISTED ABOVE

All it takes is one or two Rich Habits to completely transform a life.

The reading habit, on its own, can set your children up for career success.

The savings habit, on its own, can set your children up to be financially independent.

The exercise habit, on its own, can set your children up for a long, healthy life.

The happy birthday or life event calls, on their own, can set your children up to forge strong relationships.

Pick just two habits to teach you kids and stay on top of them for six months.

After six months the habits should stick.

Links and Resources:

Michael Yardney

Metropole

Rich Habits Poor Habits

Michael Yardney’s Mentorship Program

Some of our favourite quotes from the show:

“You can change your habits anytime throughout your life no matter what your age.” – Michael Yardney

“In my mind, the lottery, or gambling, is a tax for people who can’t do maths.” – Michael Yardney

“I believe it’s important to teach your children that it’s OK to dream, it’s OK to dream big, it’s OK to be successful, and allow them to set themselves goals and understand how to pursue them.” – Michael Yardney

Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes.

You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

Please leave us a review

Reviews are hugely important to me because they help new people discover this podcast.

If you enjoyed listening to this episode, please leave a review on iTunes – it’s your way of passing the message forward to others and saying thank you to me. Here’s how.

Why the 1% Will Always Control the Wealth | Rich Habits Poor Habits Podcast

Yes it’s true that 1% control around 82% of the wealth in the world?

And today we’re going to explain why.

I recently read that the world’s richest people have seen their share of the globe’s wealth increase significantly since the Global Financial Crisis.

In the mind of the article’s author there was something inherently unfair about this wealth inequality.

The author, like many who are not in the 1%, felt that the wealth the 1% created didn’t necessarily belong to them and offered government solutions to cap or redistribute the wealth of the rich.

The problem is… the top 1% will always control most of the wealth until the other 99% figure out how the 1% go about cultivating wealth.

So, how do the 1% cultivate wealth?

As you listen to this, the first of our monthly Rich Habits Poor Habit’s podcasts you’ll hear my discussion with Tom Corley who explains that the top 1% cultivate wealth by doing certain things:

  1. Read to Learn Every Day — 88% of the rich in my Rich Habits Study read 30 minutes or more every day to learn. Reading is work. But it’s work that is necessary if you want to become rich. Rich people read because they know that knowledge can be leveraged to gain wealth. The more you know about your field, career or industry, the more valuable you are to those you service or sell to in your field, career or industry.
  1. Deliberate Practice— 69% of the rich in my study practiced some specific skill for two or more hours every day. Deliberate practice requires conscious practice as opposed to unconscious practice. Conscious practice is practice in which you study everything you do that goes into the skill you have. It’s about studying the intricate details that enable you to become a virtuoso at what you do.
  1. Pursue Long-Term Goals or a Dream— 70% of the rich in my study pursued some long-term goal or some dream. This is what really drives the disparity between the 1% and the other 99%. Pursuing big goals or dreams creates the opportunity for good luck to happen. The majority of the 1% are beneficiaries of good luck – but good luck they put themselves in a position to receive.
  1. Focus on Daily Goals— 62% of the rich in my study focused on their daily goals.
  2. Save— 94% of the rich in my study saved 20% or more of their income every year.
  3. Be Frugal with Your Money— 67% of the rich in my study were frugal with their money. They spent their money thoughtfully, not emotionally. They buy the best made quality products at the cheapest prices. This requires study and patience and delayed gratification.
  1. Forge Rich Relationships— 68% of the rich in my study forged relationships with other upbeat, success-minded people. These are people who can open doors for you. They are individuals who are either trying to become the 1% or are the 1%. These 1% have powerful relationships with other 1% individuals. dream-clock-time-business-man-life-motivation-happy-dream
  1. Volunteer— 72% of the rich in my study volunteered 5 hours or more a month. Why volunteer? Most of the boards and committees in local non-profits are run by successful people within the community.
  1. 5 AM Club— 44% of the rich in my study woke up 3 or more hours before they began their work day to pursue dreams, goals, read, be productive, etc. Waking up early is important. It allows you to get things done first thing in the day that help move you forward in life.
  1. Become a Decision Maker at Work— 91% of the rich in my study were one of the decision makers where they worked. If you want to control the outcome of your life you need to be a decision-maker.
  1. Do Work You At Least Like— 86% of the rich in my study liked what they did for a living. When you like what you do, you will devote more time to doing it. More time in honing your skills. More time in reading to learn everything about your vocation. More time in building relationships with other success-minded people within your industry or field. More time devoted to improving yourself makes you more valuable.

Everyone wants to be on top of the mountain, but few are willing to make the climb.

The 1% control 82% of the wealth because the 1% are willing to climb the mountain.

If you want to be one of the 1%, you need to start climbing.

You need to do the things that cultivate wealth.

Links and Resources:

Michael Yardney

Metropole

Rich Habits Poor Habits

Tom Corley’s Rich Habits website

Michael Yardney’s Mentorship Program

Some of our favourite quotes from the show:

“One of the things the papers forget to mention is, if you’re listening to the podcast or reading their articles, you’re probably already in the top 1% in the world.”

“School’s not out when you leave school or leave college. You have to keep continuously educating yourself.” – Michael Yardney

“It’s often said that you’re like the five people you spend most of your time with.” – Michael Yardney

Never miss an episode and keep up with all the good things going on at the Michael Yardney podcast by subscribing on iTunes.

You can also subscribe to MichaelYardneyPodcast.com to keep up with the latest information including bonus material that comes out between the podcasts.

 

Rich Habits Poor Habits – Why The Rich Keep Getting Richer

 Michael Yardney & Tom Corley discuss the results of a 5 year study in why the rich keep getting richer.
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Rich Habits Poor Habits – Turning Goals Into Habits

Watch Michael Yardney and Tom Corley discuss the 5 year rich habits study and learn how the rich turn their goals into success habits.

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Rich Habits Poor Habits – The Power of Association

Michael Yardney and Tom Corley discuss a 5 year study which looks at one of the secrets of the rich – the power of association.

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Rich Habits Poor Habits – Super Parents Raise Kids Who Become the 1%

Michael Yardney and Tom Corley discuss where the rich learned their rich habits – and it’s not what you think.

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Rich Habits Poor Habits – Do the Rich Work More or Less Than the Poor?

Michael Yardney and Tom Corley discuss why the more you work the richer you become – believe it or not.

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Rich Habits Poor Habits Episode 61 – Are You and Anchor?

When I embarked on my Rich Habits Study I was not content with identifying the Rich Habits of wealthy people. Success habits only get you half way down the field. In order to get down the rest of the field and score, you also need to know what not to do. That is why I also studied the Poor Habits of those struggling with poverty.
Poor Habits anchor you in poverty and affect everyone around you. What are some of the anchors dragging you and everyone around you down?

* Negative Beliefs — Negative beliefs are like apps you download onto your cell phone. They program your thinking and direct your behavior in a very bad way. Worse, they infect those within your social circle. People catch on, the word gets around, and eventually you will find yourself alone and ignored. What are some of the negative beliefs that are acting like an anchor around your neck and dragging you and others down? * I’m not smart * Poor people can’t become rich * Everyone in my family is overweight * I’m not lucky * I’m not a people person * I’m disorganized * I fail at everything

* Negative Talk – We are constantly talking to ourselves and others. When the words we use internally (self-talk) are negative, it’s like adding computer code to our negative programming. When the words we use externally (talking to others) are negative, it turns people off. Negative people suck the energy out of everyone they come into contact with. Negative people are simply exhausting to be around. People catch on, the word gets around, and eventually you will find yourself alone and ignored.

* Gossip — Most gossip is negative. When we engage in gossip it telegraphs to others that we cannot be trusted and, thus, should be avoided at all costs. People catch on, the word gets around, and eventually you will find yourself alone and ignored.

* Complaining — Everyone has problems. We are all trying to solve our own problems. When you complain to others about your problems it turns people off because they are overwhelmed trying to deal with their own problems. They don’t need or want to hear about your problems. They don’t have the energy to deal with their problems and your problems at the same time. People catch on, the word gets around, and eventually you will find yourself alone and ignored.

* Financial Mess — There are a lot of reasons why people struggle financially. They spend more than they make, they take on too much debt, they struggle holding onto a job, they mismanage their business, they gamble too much, they drink too much, they have a poor work ethic or they are not self-reliant and depend on the generosity of others to constantly bail them out financially. Those who are unable to manage their finances drag themselves down and everyone around them. People catch on, the word gets around, and eventually you will find yourself alone and ignored.

* Blame Thrower — Blame Throwers do not take responsibility for their life. They blame everyone and everything for their lot in life. Blame Throwers are by nature selfish individuals who have no control over their lives. People catch on, the word gets around, and eventually you will find yourself alone and ignored.

* Anchored in Ideology — When you are anchored in ideology, you are close-minded and resistant to change. You ignore the ideas, opinions or feedback of others. People catch on, the word gets around, and eventually you will find yourself alone and ignored.

* Needy — Those who are constantly needy are not just anchors around their necks, they are anchors around everyone they come into contact with. People catch on, the word gets around, and eventually you will find yourself alone and ignored.
We are our own worst enemy. Our anchors drag us down and everyone around us. Those anchors act like neon billboard signs that tell others: “I am an anchor who will drag you down”.
Find your anchors and remove them. If you don’t, people will catch on and you will find yourself alone and ignored.

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Rich Habits Poor Habits Episode 60 – The 1% Will Always Control The Wealth

I just finished reading a recent article complaining about the rich.
The author was upset at the fact that 1% controlled 82% of the wealth in the world. In the author’s mind, there was something inherently unfair about this.

The author, like many who are not in the 1%, felt that the wealth the 1% created didn’t necessarily belong to them and offered government solutions to cap or redistribute the wealth of the rich.
It’s true. One percent do control 82% of the wealth. And the top 1% will always control most of the wealth until the other 99% figure out how the 1% go about cultivating wealth.

So, how do the 1% cultivate wealth?

The top 1% cultivate wealth by doing certain things:

* Read to Learn Every Day — 88% of the rich in my Rich Habits Study read 30 minutes or more every day to learn. Reading is work. But it’s work that is necessary if you want to become rich. Rich people read because they know that knowledge can be leveraged to gain wealth. The more you know about your field, career or industry, the more valuable you are to those you service or sell to in your field, career or industry.

* Deliberate Practice — 69% of the rich in my study practiced some specific skill for two or more hours every day. Deliberate practice requires conscious practice as opposed to unconscious practice. Conscious practice is practice in which you study everything you do that goes into the skill you have. It’s about studying the intricate details that enable you to become a virtuoso at what you do.

* Pursue Long-Term Goals or a Dream — 70% of the rich in my study pursued some long-term goal or some dream. This is what really drives the disparity between the 1% and the other 99%. Pursuing big goals or dreams creates the opportunity for good luck to happen. The majority of the 1% are beneficiaries of good luck – but good luck they put themselves in a position to receive.

* Focus on Daily Goals — 62% of the rich in my study focused on their daily goals.

* Save — 94% of the rich in my study saved 20% or more of their income every year.

* Be Frugal With Your Money — 67% of the rich in my study were frugal with their money. They spent their money thoughtfully, not emotionally. They buy the best made quality products at the cheapest prices. This requires study and patience and delayed gratification.

* Forge Rich Relationships — 68% of the rich in my study forged relationships with other upbeat, success-minded people. These are people who can open doors for you. They are individuals who are either trying to become the 1% or are the 1%. These 1% have powerful relationships with other 1% individuals.

* Volunteer — 72% of the rich in my study volunteered 5 hours or more a month. Why volunteer? Most of the boards and committees in local non-profits are run by successful people within the community.

* 5 AM Club — 44% of the rich in my study woke up 3 or more hours before they began their work day to pursue dreams, goals, read, be productive, etc. Waking up early is important. It allows you to get things done first thing in the day that help move you forward in life.

* Become a Decision Maker at Work — 91% of the rich in my study were one of the decision makers where they worked. If you want to control the outcome of your life you need to be a decision-maker.

* Do Work You At Least Like — 86% of the rich in my study liked what they did for a living. When you like what you do, you will devote more time to doing it. More time in honing your skills. More time in reading to learn everything about your vocation. More time in building relationships with other success-minded people within your industry or field. More time devoted to improving yourself makes you more valuable.

Everyone wants to be on top of the mountain but few are willing to make the climb. The 1% control 82% of the wealth because the 1% are willing to climb the mountain.

If you want to be one of the 1%, you need to start climbing. You need to do the things that cultivate wealth.

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Rich Habits Poor Habits Episode 59 – Top 10 Common Habits of High Achievers

High Achievers are people who achieve some level of greatness in life. They might be successful entrepreneurs, professional athletes, Olympians, famous writers/authors, painters, engineers, singers, prominent religious figures, etc.

Essentially, they are individuals who, through their actions, achieve greatness. And these high achievers all share certain common habits. Relying on my vast stores of knowledge and research data in studying successful people, I will do my best to identify the top 10 common habits in their order of importance:

1. Consistency — High Achievers go at it every day even when they are down, lack motivation, are sick, financially destitute, when life goes wrong, etc. They have specific habits or routines they perform every day No Matter What.

2. Focus – High Achievers are single-mindedly focused on their goals, dreams and routines. They block out all distractions. They are masters at single-tasking. They never take their eye off the ball.

3. Visionaries – High Achievers have a vision or a blueprint. Most likely, it is in writing and it is very specific. Their vision or blueprint is the GPS or map they use to get them from where they are to where they want to be.

4. Persistent – High Achievers pursue their goals and dreams relentlessly. They overcome adversity. They overcome obstacles. They pivot or find ways to navigate around impasses. They never quit.

5. Obsessed – High Achievers are fanatics. They are obsessed about their goals, dreams and routines. They think about them 24/7. They even dream about them.

6. Processed-Oriented – High Achievers create processes through experimentation that work and that they follow.

7. Action-Oriented – High Achievers are in constant motion. They pursue activities that help them to continuously move forward in achieving their goals and dreams.

8. Calculated Risk Takers – High Achievers are calculated risk takers. They overcome their fear of failure, fear of making mistakes and fear of consequences by doing their homework, understanding the risks involved and taking that calculated risk.

9. Deliberate Practice – High Achievers engage in daily Deliberate Practice in order to maintain and improve their skills.

10. Self-Educators – High Achievers pursue knowledge every day. They become experts in their field by increasing their knowledge through self-education.

Based on my fifteen years of studying high achievers, this is what it takes to become a High Achiever. There are many moving parts, many variables, many ingredients to becoming a High Achiever. It’s not any one thing that makes them great. It’s a combination of many things.

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