00:00:00
the right piece of advice at the right
00:00:02
time can make great differences in the
00:00:04
long run the kids of the rich have a
00:00:07
massive head start not because of the
00:00:08
resources they already have but because
00:00:11
of the mindset their parents instill
00:00:13
within them they start off with Decades
00:00:15
of wisdom from people who achieved
00:00:17
massive success these are 15 lessons
00:00:20
rich people teach their kids that the
00:00:22
poor don't welcome to alux the place
00:00:25
where future billionaires come to get
00:00:27
inspired number one
00:00:30
understanding how money works now this
00:00:33
might sound basic to some of you but
00:00:35
there aren't that many people who ask
00:00:37
themselves how do people make money why
00:00:40
am I being paid this much money by my
00:00:42
employer what factors determine my
00:00:44
salary or Revenue how do taxes work can
00:00:48
that be optimized what needs to happen
00:00:51
to improve my finances Now Rich parents
00:00:54
usually make it a priority to discuss
00:00:56
the value and importance of money in
00:00:58
their household as soon as possible
00:00:59
possible and this familiarizes kids from
00:01:02
a young age with the concept of value in
00:01:05
exchange for services provided they're
00:01:08
introduced to the household expenses and
00:01:10
put in real life situations where they
00:01:12
can figure out pretty quickly that money
00:01:14
is a lot harder to earn than it seems on
00:01:17
the other end of the spectrum the poor
00:01:19
never talk about money at home it's
00:01:21
usually a secret how much money the
00:01:23
parents earn or how much money is spent
00:01:25
the only time the kids hear about money
00:01:27
is when parents are arguing about not
00:01:29
having having enough thus associating
00:01:32
the entire concept with negative
00:01:35
feelings number two the difference
00:01:38
between an asset and a liability the
00:01:41
poor never know what's a good purchase
00:01:43
and what's a bad purchase after poor
00:01:45
people earn money they go ahead and
00:01:47
spend it that's how they stay poor let
00:01:50
us explain in as simple terms as
00:01:52
possible an asset makes you money while
00:01:55
a liability costs you money the problem
00:01:59
here is that poor people people never
00:02:00
realize what counts as a liability for
00:02:03
example both the car you drive to the
00:02:05
grocery store and the house you live in
00:02:08
are liabilities okay they don't generate
00:02:10
any revenue for you they demand money to
00:02:13
keep on running same goes with your new
00:02:15
iPhone fancy clothes your smart TV and
00:02:18
everything else you purchased without
00:02:19
thinking while the rich Focus all of
00:02:22
their time and money on acquiring more
00:02:24
assets buying an apartment that
00:02:27
generates rent writing a book that
00:02:29
generates Revenue purchasing parts of a
00:02:32
business that's doing okay and more and
00:02:35
while most rich people have fancy cars
00:02:37
and fancy houses the assets they have
00:02:40
pay for those kinds of luxuries rich
00:02:43
people never buy luxuries from their own
00:02:45
earnings they want a fancy new car well
00:02:48
they figure out how to buy two
00:02:49
apartments and then use the rent from
00:02:51
those apartments to pay for the lease of
00:02:53
the car that way when you get rid of
00:02:55
that car you still have money coming in
00:02:57
from the apartment rental this is a
00:03:00
crucial difference in behavior when
00:03:02
money starts coming in focus on buying
00:03:05
assets instead of spending
00:03:08
it number three they are not entitled to
00:03:12
anything the rich know the world can
00:03:14
take everything away if they're not
00:03:16
performing while the poor tend to look
00:03:18
for someone else to take care of them
00:03:20
being born into a wealthy family
00:03:22
definitely has its advantages no lies
00:03:24
there you've got access to better tools
00:03:26
and better resources you don't have to
00:03:29
worry about B basic needs but you also
00:03:32
open yourself up to new threats that
00:03:34
poor people don't have to worry about
00:03:36
there's a lot more for you to lose if
00:03:38
you're not careful so the pressure is
00:03:40
always on it's really important for the
00:03:42
wealthy to teach their children that
00:03:44
despite them getting a head start in
00:03:46
life the journey ahead is just as long
00:03:48
and they need to remain focused on
00:03:49
growth not just maintaining the pace
00:03:53
growth whether or not they'll be
00:03:55
successful in life depends on their own
00:03:57
actions and Daddy's Money can only take
00:03:59
them so far the fortune of a family
00:04:02
where children feel entitled well it
00:04:04
usually crumbles in the third generation
00:04:07
first there's someone who's really
00:04:08
hungry and works incredibly hard to
00:04:10
build wealth second their children grow
00:04:13
up with a sense that all they need to do
00:04:14
is maintain that wealth and lastly the
00:04:17
third generation has lost its hunger
00:04:20
feels entitled to success without work
00:04:22
or sacrifice and usually spends it all
00:04:25
pretty stupidly teaching your kids the
00:04:28
lessons from this video will help you to
00:04:30
avoid this type of
00:04:32
downfall number four how to be sociable
00:04:35
and connect with other people you would
00:04:38
think that more people would realize how
00:04:40
important it is to be able to have a
00:04:42
pleasant conversation with others
00:04:44
successful people socialize their kids
00:04:46
before the age of four not even kidding
00:04:49
okay here's why if your child gets
00:04:52
socialized that early other kids will
00:04:54
want to play with them if they behave
00:04:57
well with other kids well other parents
00:04:59
want to take care of them too while they
00:05:01
play with their own children and this
00:05:04
has a massive Snowball Effect throughout
00:05:06
life if people like you and like being
00:05:09
around you well this builds up and doors
00:05:11
start to open for you that otherwise
00:05:13
would stay shut teachers will treat you
00:05:16
better you'll get access to better job
00:05:18
opportunities you'll make better friends
00:05:21
there's an entire tree of benefits that
00:05:23
grows from early
00:05:27
socialization number five in increasing
00:05:30
income instead of lowering
00:05:33
expenses one of the most valuable
00:05:35
lessons a parent can teach their child
00:05:37
is how to generate more money it takes
00:05:39
the same amount of effort or work to
00:05:41
barely survive or to make a fortune this
00:05:45
might sound peculiar to some of you but
00:05:47
it is the truth okay the difference is
00:05:49
the approach and the knowledge you use
00:05:51
to back up that effort the smarter you
00:05:54
are from a financial perspective the
00:05:56
least amount of effort you have to
00:05:57
deploy into the real world that's why
00:06:00
Wall Street brokers earn so much more
00:06:02
than miners who between these two do you
00:06:05
think deploys the most effort poor
00:06:08
people are always focused on lowering
00:06:11
expenses as much as possible to the
00:06:13
point that life is almost not worth
00:06:15
living anymore do you think the rich
00:06:17
care about buying a $5 coffee from
00:06:19
Starbucks or not or spending $30 on a
00:06:22
movie instead the wealthy put all of
00:06:24
their attention into increasing the
00:06:26
amount of money flowing in if you
00:06:29
radically increase your income there's
00:06:31
always going to be a large amount of
00:06:32
cash left over at the end of every month
00:06:35
poor people teach their kids to lower
00:06:37
expenses while rich people focus on
00:06:40
increasing their income there's a major
00:06:42
difference here you combine that with
00:06:44
lesson number two on this list and you
00:06:46
are well on your way but if you want to
00:06:48
win the game of money take it a step
00:06:50
further and download the alux app on top
00:06:52
of our daily coaching sessions we're
00:06:54
constantly curating new collections to
00:06:56
help you tackle specific areas and
00:06:58
issues in your life our money 2011
00:07:01
collection is all about accelerated
00:07:03
wealth building with a focus on
00:07:04
diversifying your income through
00:07:06
Investments and it was written by our
00:07:07
very own CEO Emil Anton our goal is to
00:07:11
create 1,000 new millionaires among our
00:07:13
app subscribers and look we truly hope
00:07:16
that you'll be one of them we know this
00:07:18
app has the power to change your life
00:07:21
because well it's already changing the
00:07:23
lives of thousands of our subscribers so
00:07:25
far there's absolutely no cost to you
00:07:28
upfront if you sign up up for the free
00:07:30
trial week you get access to everything
00:07:32
to sample the value firsthand and on day
00:07:35
five of that trial we'll send you a
00:07:36
reminder just to make sure you're not
00:07:38
accidentally charged and to make this
00:07:40
even more of a no-brainer after you
00:07:42
download the app come back here to scan
00:07:44
this QR code for 25% off the yearly
00:07:47
subscription that's alux.com
00:07:51
slapp number six how to create daily
00:07:55
habits that give them incredible
00:07:57
advantages
00:07:59
now one of the most valuable skills you
00:08:01
could teach your child is how to create
00:08:04
a habit for themselves habits are
00:08:06
amazing and once you realize how
00:08:08
valuable they can be your life changes
00:08:11
it normally takes around 21 days to
00:08:13
create a new habit and once you push
00:08:15
through that 21-day limit you're Off to
00:08:17
the Races okay that habit becomes a part
00:08:19
of you if you don't read enough
00:08:22
transform reading into a habit if you
00:08:24
want to get fit but never have the
00:08:26
motivation to go to the gym make a habit
00:08:29
out of it same goes for work if you make
00:08:31
it a habit to organize and optimize your
00:08:33
workflow large portions of your day open
00:08:36
up for other things the rich use the
00:08:39
Power of Habit to get ahead in life
00:08:41
while the poor nurture toxic habits
00:08:44
which lead their lives into ruin the
00:08:47
Power of Habit is a tool it magnifies
00:08:50
what you feed it the rich simply choose
00:08:52
wealth creation actions as their daily
00:08:55
habits while poor people pick negative
00:08:57
routines so be care careful of what type
00:09:00
of habit you instill in your child
00:09:02
because children learn from watching you
00:09:04
do what you do not from what you teach
00:09:07
them to do number seven money is a tool
00:09:12
and it's a good thing how many times
00:09:15
have you heard people say that money is
00:09:16
the root of all evil think back to the
00:09:19
person you heard saying that how
00:09:22
successful were they how happy were they
00:09:25
in their lives poor people blame their
00:09:27
misfortunes on the lack of money in
00:09:29
their lives and attribute an element of
00:09:31
negativity to the concept of money as a
00:09:33
whole and this is because even when they
00:09:35
get money it leads to more and more
00:09:38
problems which they don't know how to
00:09:39
tackle the rich do the exact opposite
00:09:43
okay they understand that money is
00:09:45
merely a tool which you use to navigate
00:09:48
your life it's just pieces of paper and
00:09:51
plastic with drawings on them okay that
00:09:53
we exchange for material value nothing
00:09:56
more nothing less stop taking money so
00:09:59
personal and use it for what it was
00:10:01
created for exchange it to make your
00:10:04
life better it's very similar to just I
00:10:07
don't know thinking about a pair of
00:10:08
scissors or something you could cut hair
00:10:11
with scissors or you could stab yourself
00:10:13
in the eye once you start thinking of
00:10:15
money as a tool the game suddenly
00:10:18
changes and you'll stop harming yourself
00:10:20
with it in the
00:10:22
end stop expecting immediate results and
00:10:26
avoid magical thinking we're all caught
00:10:29
up in this instant environment do you
00:10:31
want to watch a movie stream it do you
00:10:34
want to eat order in do you want instant
00:10:38
relationships swipe left swipe right but
00:10:42
most people don't realize that wealth
00:10:44
and happiness don't fall into this
00:10:47
instant category poor people expect to
00:10:50
get rich quickly to win a large sum of
00:10:52
money or inherit property they have this
00:10:55
weird expectation that their lives will
00:10:57
somehow magically become better But the
00:10:59
irony is even if they somehow got their
00:11:02
hands on a lot of money they're not
00:11:04
educated enough to know what to do with
00:11:06
it and eventually they'll blow through
00:11:08
all of it rich parents make it a
00:11:11
priority to teach their kids to play the
00:11:13
long game longterm thinking is one of
00:11:16
the differentiating characteristics of
00:11:18
the rich something really interesting we
00:11:21
discovered is how much progress you can
00:11:23
make if you think about life in large
00:11:26
batches of time say 5 10 20 years
00:11:30
there's a really great quote from an
00:11:32
interview Bill Gates did where he said
00:11:34
most people overestimate what they can
00:11:36
do in one year and underestimate what
00:11:38
they can do in 10 years the new year new
00:11:41
me campaign starts every January right
00:11:44
but instead of planning for the next
00:11:45
year why don't you start planning for
00:11:47
the next decade and maybe this time
00:11:51
you'll do something about it number nine
00:11:54
knowledge is more valuable than money in
00:11:57
the long run there is another quote that
00:11:59
we kept hearing a lot when we were
00:12:00
getting started and it took a while to
00:12:03
fully comprehend the true implications
00:12:04
it had but it goes like this invest in
00:12:08
yourself it pays the best dividends
00:12:11
sounds easy right you've heard us say it
00:12:12
before but it has very little to do with
00:12:15
going to school or reading books it has
00:12:17
a lot more to do with increasing how
00:12:19
valuable you are to the world the world
00:12:22
rewards people who are valuable because
00:12:25
valuable people can create value for
00:12:27
others and in exchange for that value
00:12:30
they can get whatever they want but the
00:12:32
concept of becoming a valuable person is
00:12:34
not taught to their children by the poor
00:12:37
even just a few of the wealthy bring it
00:12:39
up when their child is growing but those
00:12:42
who do see a higher probability of both
00:12:44
success and happiness there are many
00:12:47
ways to become valuable from filling a
00:12:49
position in the company to creating a
00:12:51
product or service that people use to
00:12:54
showcasing your talent to the entire
00:12:55
world the more valuable you are the
00:12:58
Richer you'll become the only way to
00:13:00
become more valuable is through the
00:13:02
increase of knowledge skill level and
00:13:05
time learn how to be better and then
00:13:08
practice being better at it for long
00:13:10
enough that you start to see noticeable
00:13:13
differences it takes 10,000 hours to
00:13:16
master anything that's why the rich have
00:13:18
their children try a bunch of activities
00:13:20
to get a head start on that number of
00:13:22
hours someone who has knowledge will
00:13:25
always be able to generate money because
00:13:27
they're valuable to the market
00:13:29
Marketplace but the opposite is not
00:13:31
always true sometimes knowledge can be
00:13:34
too expensive to buy number 10 don't
00:13:38
work for money have money work for you
00:13:42
this is the centerpiece of getting rich
00:13:44
right you can read as many books as you
00:13:46
would like go to seminars classes get an
00:13:49
MBA whatever you want it's all based on
00:13:52
this poor people exchange their time for
00:13:55
money and then they spend it the rich
00:13:57
use the money and they get to create
00:13:59
more money there are big differences in
00:14:02
the approach to finance these two
00:14:03
classes of people employ most people
00:14:06
stay poor because they believe you need
00:14:08
large amounts of money to invest
00:14:10
otherwise there's no point while the
00:14:12
rich are always looking for ways to add
00:14:14
the smallest drop in the bucket of
00:14:16
positive income they can find because
00:14:19
it's not about the amount as much as it
00:14:21
is about getting used to the idea of
00:14:23
growing something yourself you can start
00:14:26
a business these days with less than
00:14:28
$100 if you know what you're doing or
00:14:31
even for free as long as you're willing
00:14:33
to put in the time as soon as you
00:14:35
generate enough Revenue use that money
00:14:37
to pay for someone else to do the things
00:14:39
that you used to do to keep that
00:14:41
business running as you focus on growing
00:14:43
and other more important
00:14:46
things number 11 solving problems is the
00:14:50
quickest way to get rich something the
00:14:53
rich are quick to teach their children
00:14:54
is the fundamental difference between
00:14:56
getting paid and getting rich let us
00:14:59
explain so poor people get paid to take
00:15:01
care of something someone else needs
00:15:03
done for example deliver the newspaper
00:15:05
wash the car answer the phone that kind
00:15:08
of thing single activity jobs where you
00:15:10
basically do the same thing over and
00:15:12
over and over again the rich never do
00:15:15
repetitive work because it's easily
00:15:17
outsourced instead they focus on the
00:15:20
bigger problem the bigger the problem
00:15:22
you fix the Richer you become that's how
00:15:25
delivering the newspaper became content
00:15:27
think websites same results a lot less
00:15:30
hustle people will pay money for you to
00:15:33
solve their problems teach your children
00:15:36
that and they're Off to the Races number
00:15:39
12 not to waste time on things that do
00:15:42
not correlate to the real world sorry to
00:15:45
break it to you but nobody really cares
00:15:47
about your degree to be honest we feel
00:15:50
like the entire educational system right
00:15:52
now is pretty messed up they're just
00:15:54
repeating to you the same things that
00:15:56
used to make sense a while back with a
00:15:58
blatant regard for the future you're
00:16:00
basically getting into massive debt over
00:16:03
skills that don't have a direct
00:16:05
correlation to the marketplace and if
00:16:07
you're really passionate about anything
00:16:09
and put in the time to master it you've
00:16:12
got a better shot at making it on your
00:16:14
own anyway don't get degrees you'll
00:16:16
never be able to pay for for jobs that
00:16:18
no longer exist that's crazy right
00:16:21
that's what we've been doing for the
00:16:23
past 40
00:16:25
years number 13 how to use good debt
00:16:29
instead of bad debt bad debt makes you
00:16:32
poor while good debt makes you rich did
00:16:36
your parents ever mention this to you
00:16:37
when you were growing up probably not
00:16:40
right it's one of those lessons that the
00:16:41
rich have figured out a long time ago
00:16:44
other people and institutions will
00:16:46
actually help you get rich quicker if
00:16:48
you know the difference between these
00:16:50
two because it's all about the purpose
00:16:52
of debt poor people take out loans with
00:16:55
the purpose of spending that money on
00:16:56
liabilities they borrow money to get a
00:16:59
new car to get a new phone to cover the
00:17:01
Necessities the rich only borrow money
00:17:03
with the purpose of generating more
00:17:05
money Banks and investors love to lend
00:17:08
money to this kind of project as long as
00:17:10
you can clearly explain to them how your
00:17:13
money will be safe and how you'll be
00:17:15
able to pay it back because that's how
00:17:17
people build skyscrapers okay they don't
00:17:19
pay out of their own pocket for the
00:17:20
building no not even for the land it is
00:17:23
all on borrowed money the bank is
00:17:27
certain that you'll be able to sell it
00:17:28
or rent the building and that's why it's
00:17:30
willing to take on that risk with you
00:17:32
you'll just have to prove that first of
00:17:34
all you know what you're doing and that
00:17:36
you've done this successfully in the
00:17:38
past number 14 80% of the results come
00:17:43
from 20% of the effort Rich parents
00:17:46
don't actually want their kids to be top
00:17:48
of the class shocker right but it has to
00:17:51
do with the 8020 rule also known as the
00:17:53
parto principle or the parto
00:17:55
distribution which which states that 8
00:17:58
80% of the outcome is the result of just
00:18:01
20% of the action in business 80% of the
00:18:05
revenue comes from only 20% of the
00:18:07
customers 20% of your employees
00:18:09
basically do 80% of the work and so on
00:18:13
this is a mathematical ratio that's been
00:18:15
proven to be quite accurate in almost
00:18:17
all Enterprises and kind of life in
00:18:20
general but back to why Rich parents
00:18:22
don't want their kids to be the first in
00:18:24
class who take up too much time and
00:18:26
effort to improve with the smallest
00:18:29
deviation you would need to dramatically
00:18:31
increase the time you put in which
00:18:33
doesn't leave enough time for your real
00:18:35
life education there's more value to
00:18:37
take out of experimenting in the real
00:18:39
world than being inside studying all
00:18:42
night to just get 5 or 10% more on your
00:18:45
exam that kind of tradeoff just isn't
00:18:48
worth it and number 15 having money
00:18:52
doesn't make you a better person it just
00:18:55
solves some of your problems surprise
00:18:58
surprise when you're thinking of rich
00:19:00
kids you probably picture snotty
00:19:01
arrogant Pricks who believe that just
00:19:03
because they have money they're better
00:19:05
than everyone else but like look okay
00:19:07
that's not usually the case unless you
00:19:09
inherit your money you probably worked
00:19:11
your butt off to get to where you are in
00:19:13
life on the road to riches you have to
00:19:16
understand how valuable humility can be
00:19:19
and most rich people are very humble
00:19:21
individuals because they never forget
00:19:23
where they came from those values don't
00:19:26
get lost humility and respect for other
00:19:28
mothers are some of the first lessons
00:19:30
that rich parents teach their children
00:19:33
because well they know what it feels
00:19:35
like to be sitting on the other side you
00:19:37
should never be ashamed of having money
00:19:39
or being successful it's actually
00:19:41
something you should celebrate a lesson
00:19:44
most people figure out too late in life
00:19:46
is that you can't buy a clear conscience
00:19:49
no matter how much money you throw at it
00:19:51
money pays for Comforts of the body but
00:19:54
not Comforts of the mind or Soul now we
00:19:57
did a couple of videos a while back
00:19:58
where we went pretty deep into what
00:20:00
money can and can't buy but the question
00:20:03
we want to leave you with today is what
00:20:05
lesson did your parents teach you that
00:20:07
has served you well in life and if
00:20:09
you're so kind please leave that in the
00:20:11
comments for other people to benefit
00:20:13
from it as well and since you stuck with
00:20:15
us until the very end here's your bonus
00:20:17
fact number 16 rich people teach their
00:20:21
kids to raise their
00:20:23
expectations you want your kid to live a
00:20:25
better life than you have teach them how
00:20:28
to not put up with and raise
00:20:30
their expectations some people say the
00:20:33
secret to happiness is lowering your
00:20:35
expectations in order to achieve them
00:20:38
well the secret to financial success is
00:20:40
to raise them and then hit them the
00:20:43
majority of people settle for mediocrity
00:20:46
never taking big risks for big wins the
00:20:49
competition might be fierce at the top
00:20:51
but there are definitely fewer players
00:20:53
involved so think of it like this would
00:20:55
you rather have low expectations and
00:20:58
meet them them or would you rather fall
00:21:00
short of the highest expectations
00:21:02
possible if you compare both results
00:21:05
you're definitely better off with the
00:21:07
lad now if you've watched up to this
00:21:10
point in the video please write the word
00:21:12
risk in your answer to today's question
00:21:14
just to keep things interesting we'll
00:21:16
see you in the comments my friend until
00:21:19
next time take care
