Those raised in wealthy households have a huge advantage over everyone else. Besides having an abundance of resources, they have an abundance of class-specific knowledge that only other wealthy households possess.
This Hidden Knowledge is then passed on from one generation to the next, ensuring future generations will be able to succeed in life and remain wealthy.
What is this Hidden Knowledge?
As I found in my five year Rich Habits Study, it comprises many things which gave them an advantage in life over others who were not raised in wealthy households.
- Self-Determination – You create your life. Your life is not determined by the government, other people or external circumstances. You are the pilot of your life.
- Individual Responsibility – Take responsibility when things go wrong. Don’t blame others or play the victim.
- Respect the Law – When you break the rules, people don’t trust you and don’t want to do business with you.
- Find Your Innate Talents – The wealthy allow their children to experiment with many different things. This experimentation helps reveal your innate talents. Once found, your job then becomes mastering and improving upon your innate talents.
- Pursue Dreams and Goals – Define an ideal future life. This creates clarity and helps you identify the dreams and goals that you need to realize/achieve in order for you to live the life you desire. Dreams and goals help you to focus on what matters most.
- Wealth is Good – Wealthy people help fund charities, build hospitals and schools. They should be looked up to.
- Work Hard – Anything you want badly in life requires hard work.
- You Are Not Entitled to Anything – You’re not entitled to something that another person has. Don’t expect others to give you anything. You have to go out and get it yourself.
- Daily Growth – Improve yourself daily. Wealthy parents indoctrinate their wealthy children with the mindset that they need to grow and improve every day. Wealthy parents teach their kids daily Growth Habits that enable their children to improve and grow on a daily basis.
- Avoid Time Wasters – Wealthy parents teach their children to use time productively. They oversee their children’s activities so that their children do not forge Time Wasting Habits. They teach their children to become habitually productive with their time.
- Relationships are the True Currency of the Wealthy – The rich do not allow their children to associate with just anyone. They understand that habits and thinking spread like a virus throughout your social networks. So, they feed their children into social networks that will help their children build relationships with the “right people”. This is why so many wealthy people have relationships with powerful politicians, captains of industry, are members of exclusive clubs and are board members on non-profits. They know that’s where the “right people” hang out.
- Marry Well – Wealthy parents are instrumental in who their children marry. They will fight like crazy to prevent their children from marrying someone who does not share their habits and thinking.
- Healthy Habits – The wealthy teach their children that health must be a priority – daily exercise and eating healthy are just habits in wealthy households.
- Good Goals vs. Bad Goals – Wealthy parents teach their kids that not all goals are created equal. Good Goals:
- Goals that help move you forward in life
- Goals that create additional sources of income
- Goals that force you to become better – more knowledgeable or better skilled
- Goals that preserve your wealth – prudent investing
- Goals that boost your wealth
- Goals that help you build relationships with other success-minded people or Influencers
- Good Debt vs. Bad Debt – The wealthy teach their children that not all debt is bad. Good Debt:
- Debt that creates assets that one day can create cash flow and appreciate in value
- Debt that helps you gain knowledge or become more skilled in what you do
- Focus is a Superpower – The wealthy teach their children to avoid multi-tasking and instead focus exclusively on one thing at a time.
- Be Fearless – Because the wealthy have more resources, their children can experiment and fail, knowing there is a safety net in the form of parents and family. Kids born into wealthy households are therefore more willing to take risks. Courage becomes a daily habit that stays with them throughout their adult lives.
- Money is a Tool – The wealthy teach their children that money is not an end but a tool that when used properly, helps them to create more wealth.
- Optimists Succeed – Wealthy parents understand that optimists make more money than pessimists. So, they raise their children to be optimistic in life.
- Curiosity Creates Growth – The wealthy encourage their children to be curious. This curiosity helps them grow and learn new things.
- Avoid Gambling – The wealthy teach their children the difference between speculating and investing. Speculating requires taking great risk, requires no homework and depends on random good luck. Successful investing requires that you do your homework and obtain knowledge prior to making an investment. This helps to significantly reduce investment risk.
- Control Your Emotions – Children raised in wealthy households learn, at an early age, to control their emotions. The wealthy teach their children that unchecked emotions are your greatest enemy, as an adult.