Epic Real Estate Investing - Teaching your Kids "Rich Habits" | 555

Episode Date: December 29, 2018

We all want our kids to have better lives than we do, but we also know that financial struggle is commonplace. This is why we decided to depict the significant statistics concerning the rich and the poor children’s upbringing and to give you some new ideas of how to set your kids for success by habituating them to rich habits. Stay tuned and learn why you should motivate your children to read, why you should teach them that mistakes are a good thing, and how many rich habits one should acquire to thrive. Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. So you want to be a real estate investor, but you don't want to do the work. If there were only a way where someone else could do it for you, now there is. Tune in here each and every Saturday on the Epic Real Estate Investing Show for Turnkey Saturdays with your host, Mercedes-Torres. Hello and welcome, welcome to the Turnkey portion of Epic Real Estate Investing. My name is Mercedes Torres, and I am privileged enough to be partners in crime with Mr. Matt Terrio, the guy who created the epic real estate empire. Now, for those of you joining us again, welcome back. And for our new listeners, thanks for joining us. I'm going to give you just a little insight onto our show. Our show, turnkey, real estate investing, really was created because I noticed that there was a demand in the changing market.

And my goal is to really help that busy professional who understands the importance of real estate just doesn't have the time to do it or doesn't really want to learn every single detail there is about real estate. So the purpose of my episodes is to help those busy professionals or anyone for that matter, dive right into real estate investing without learning every single nuance there is in real estate. but more so allowing you to dive into the world of real estate investing without doing all of the work. So in a nutshell, that's what this show is all about. And welcome to all of our listeners. So I just want to share that Matt and I just recently got back from a family vacation. We went to New York. And you know, in the plane, in the back of the seat pockets, there are these magazines. And we stumbled across an article that struck us because it touched the very core of the reason of what we do,

why we do, and why we invest in real estate and why I even do this podcast for that matter. Now, I often speak about the fact that I didn't discover how finances work from my parents. It actually, you know, it came to me much older in life. and I actually grew up quite poor. I was the youngest of four daughters. My father was a welder. My mother is a stay-at-home mother. I am a first-generation American,

and so we grew up with the bare minimums. So I didn't get financial education from my parents or a mentor. In a nutshell, I do what I do, because I don't want my son to walk through that long, frustrating path of having to figure out finances because I wasn't taught that. And what's more, it's so long and frustrating and pretty much everyone walks down that path unless you're lucky enough to have parents who know a little bit more about finances or they had a different path like financial wisdom,

and then they shared it with you. So I do what I do for my son, and hopefully you get the benefit, and from my inspiration, I hope that it helps you inspire your children as well. The world in which we live in, this more often than not is a recipe for financial struggle, and I don't want you to struggle the way I did.

So back to the article, that Matt and I discovered on the plain mind home is the article is called, Will Your Child Be Rich or Poor? Fifteen poverty habits. Parents teach their children. As you can probably tell, it's an ailment with my personal cause. So it caught my attention, and it was a subject matter for Matt and I. So I'm not going to read the whole article because you can simply Google it and you can find it yourself.

but I do want to share it with you because there were some significant statistics and differences between what the rich teach their children and what the poor teach their children. For example, 63% of self-made millionaires were required by their parents to read two or more non-fiction books every month versus only 3% of the poor. Now, can you imagine if you would have read through your entire life two nonfiction books a month, maybe you have. And if you did, certainly had set you apart, but I sure is heck didn't. And I didn't start reading until pretty much I was my first or second year of college.

but I remembered that it kind of shifted everything for me. My mindset, my way of thinking, more critical thoughts and critical evolution of my thoughts began to transpire when I started reading a little more. And of course, my parents didn't read. They barely even spoke the language. So if you get your children to read a little bit more, it changes everything for them. Anyway, that's what the article said. Number two, 83% of the wealthy attended back to school night versus 13% of the poor.

What a concept, right? 9% of the wealthy watched reality TV versus 78% of the poor. 79% of the wealthy networked 5 hours or more per month versus 16% of the poor. Gosh, I network five hours a week per month. So number five, 79% of the wealthy believed they were responsible for their financial circumstances. Yet 82% of the poor believed they were born poor and they were going to die poor. They believed they did not have a chance to change their financial circumstances. Number six, 63% of the wealthy had a positive, optimistic mindset, while 94% of the poor had a negative pessimistic

mindset. Now, they say that the way you think really is what changes everything about the onset of your day, let alone your future. So I'm a big fan of that. I often have a conversation with my son, actually every morning, and we talk about what we are most looking forward to in the day. And that kind of just sets up something for him where he's looking forward to something, but it gets him to think positive thoughts. And I'm a big advocate of mindset. Number seven, 100% of self-made millionaires had a success mentor, and none of the poor had mentors.

Ironically, some of the poor didn't even know what a mentor was. I mean, there were so many eye-opening statistics, as well as some surprising ones around diet and exercise and weight and health. Ironically, the rich eat better, exercise more, and are far in great better health than the poor. Now, the article's author named Thomas C. Corley, now he's over at rich habits.net, if you want to Google him or look at that website because he has a whole bunch of interesting just articles and videos on just how the rich teach their children to continue to be rich and even better off than them. But it went on to conclude after his years of, research that the poor are poor because they have too many poverty habits and too few rich habits. The best parents teach their children good habits that lead to success and the worst parents teach their kids bad habits that lead to poverty. Now, he goes on to say that we don't have a wealth gap in this country. We have a parent gap in this country.

We don't have an income inequality issue. We have parents' inequality issues. Parents and our schools really need to get together to instill good daily success activities. They need to be teaching children specific rich habits to lead to success. I'm on board with that all day long. Now, here's some examples that he shared. Limit TV and social media. video games and cell phone use to no more than one hour per day.

Require that your children read at least one nonfiction book a week, and they should be required to write a one-page summary so that the parents confirm that the child actually understood what they read. Now, that's a bit overkill for me. A week is a bit much. My kid has too many activities in a week, but my kid just, read one book a month and then had to write an article about that book, or not an article, a paragraph about that book to tell me what that meant. I mean, my son is only seven years old,

but he can fork out a couple of sentences and that would be something for me to help understand if he understands what he's reading. And he goes on to say, require children to do an aerobic activity 20 to 30 minutes a day and limit their junk food to no more than 300 calories a day. Teach you children to dream and to pursue their dreams. Have them write a script or do a vision board. I'm a big fan of vision boards for their future. Require your children to set goals. I like that.

Require working age children to work or work. volunteer at least 10 hours per month. Require that children save at least 25% of their earnings or 25% of any monetary gift they received. Also, teach children the importance of calling friends and family teachers or coaches on their birthday. And really important is to teach children how to send a thank you card every time someone does something nice for them, especially on their birthday. When they get a gift for their birthday, teach them to send a thank you card and teach them how to show and express gratitude. Now, something that's really caught my attention is reassured children that mistakes are a good thing, not a bad thing. Teach them when they make a mistake,

there is a learning point to the mistake. I'm a big. I'm a big. fan of trying to make light of every situation. And now that Mateo is getting a little bit older, gets frustrated. Now he uses his words to express frustration. And so now I try to use these same words to make it a learning experience when he makes a mistake. Now, children need not to understand the very foundation of success is built on lessons that we learn from our mistakes. Discipline children when they lose their temper so that they understand the consequences of not controlling this very costly emotion. Anger is the most costly emotion. It gets people fired up and causes divorce and causes damage to a valuable relationship.

So help them understand that portion and it will make a difference for them. Teach children that the pursuit of financial success is a good thing. that pursuing wealth is a good thing and not a bad thing. Children need to learn how to manage money. Open up a checking account or a saving account for children and force them to use their savings to buy the things that they want. This teaches children that they're not entitled to anything. It teaches them that they have to work for the things that they want in life,

like the new cell phone or like computers or fashionable clothes, video games. this will teach them the value of the dollar because now they have to earn the dollar and then they have to spend the dollar that they earned in order to purchase the one luxury, so to speak, that they want. Require children to participate in at least one non-sports-related extracurricular activity at school or outside of school. Parents and children need to set aside at least in hour a day to talk to one another, not on Facebook, not on the cell phone, not texting,

but really face-to-face. The only quality time is quantity time. Teach your children how to manage their time. Teach them how to create a daily to-do list and put on their to-do list the things that are important to them and put that to-do list on their bedroom door, for example, somewhere where they can see it on a daily basis. Obviously, it's not possible to follow every single rich habit recommended that the author listed, but from his research, he learned that it only takes one or two rich habits to completely transform a life. The reading habit on its own can set your children apart for a career of success simply by setting the apart from the other children that aren't reading one book a month or two books a month.

The saving habits on its own, it can set your children up for financial independence and will teach them the value of working for their dollar and then saving it to spend on something that they want. Furthermore, it will allow them to further appreciate whatever it is that they purchase because they had to work for it. And the exercise habit on its own can set your children up for a long, healthy life, especially if there is a struggle of weight or gaining weight or losing weight. It will absolutely help them. And last but not least, the happy birthday or life call event can seriously set your children up to create long, lasting, strong relationships. I mean, seriously, if you just picked one or two of these habits to teach your children and stay on top of them for just six months, after six months, the habit will stick and it'll become a part of their life.

It'll become a part of their being. And that in itself will set your children apart. Now, one of the habits that I started to instill in Mateo, I mean, he's only seven years old, but he's now old enough to understand that when he asked, for something, he will most likely get it. So now when he asked for a new toy, we have him think about a product or a service that he could provide to me or my mother and father, his grandparents, which I'd be willing to give him money in exchange. Now, he's really big on Legals.

He loves building Legals and, you know, a little box of Legals. is $9.99, $10. So he created a to-do list at home. Now, this is outside of his chores. So he still has to do his bed and he still has to pick up his room. But he now gets $2 for folding the towels and the laundry. The kid is seven. Does a terrible job at folding my towels.

But he understands that every week he will get $2 for folding the towels and the laundry. And he knows, okay, if I want the next legal toy, I can get it in one month or less if I fold the laundry. Same thing for taking out the trash. There are plenty of trash cans in our home. He gets paid for taking out the trash when it's not done by the cleaning crew. So we have instilled a few things in him that outside of his personal chores, he can make some extra money. Another thing that we've done is we sell them by...

coax or bottled water. But when we do, he collects the recycles and he puts them in the garage and then I make him go down to the recycle and he has to go and do the work himself. So he has to collect the can and it takes us a minute because we don't regularly use aluminum or plastic. But he then has to go and collect it and then I just drive them down to the recycle thing. I don't know, once every two months because it's not that much, and he collects that money and uses it to buy his Legos. So I've instilled that in the seven-year-old, and our next step is going to be to teach him to create something and how to license it or a product it. So he will then create from a one-time charge, like residual income.

This is what we call cash flow. So that'll be our next step, and it's probably going to be instilled when he's like nine or ten, when he can think a little bit more elaborate. But he's already got the concept of what can I create, what job can I create at home that will make mom and dad pay me $2. In addition to that, he's now starting to negotiate his rate. So he understood that $2 is just not enough for him. But once he grasps both of these concepts really good, he's going to be fine.

Number one will be to provide a product or service that people are willing to pay for. And number two is create a residual income, a reoccurring fee. So it's going to force him to think of something that's going to go on automatic. That's the plan. After all, that's the real key to financial freedom. And that's exactly what income real estate allows you to do. I mean, people pay for the right to live in your property and they pay each and every every month to live in for it, called rent. So if it's financial freedom that you're after,

that's how you do it. And you can do it yourself. And that's what Matt teaches at the Epic Real Estate Investing Podcast. He teaches you how to do real estate investing yourself. Or you can have somebody else do it for you, a turnkey operation, at least somebody to do all the heavy lifting. That's what we do it cash flow savvy, and that's the reason I created this podcast. Either way, you've got to get it done. Whether you do it yourself or someone does it for you, you absolutely have to do it. If you don't like to explore the possibilities of taking a little bit more control over building your financial freedom, go to my website, cashflow savvy.com, that's savvy with two Vs, download the rat race escape plan and it will tell you how to escape the rat race.

Now, if you do it yourself, it's likely to take you a little bit longer, but there is a step-by-step guide on how I did it and truly you can do it as well. Or go to my website, same cash flow savvy.com, book a call with me. It's got fancy writing. It says book a call with a consultant. It's generally me or one of my team members, but if you specifically request me, I will be more than happy to hop on the phone or send me an email. My email is Mercedes at epic real estate.com, and Mercedes is spelled just like the car. Whether or not you do it with assistance or you do it on your own or do it with somebody as a partner, doesn't matter how you do it, just get it.

done. Create streams of income, create a rat race escape plan, and really just get out of the rat race. I hope me sharing this article kind of opened your mind a little bit. After all, I am all about getting your wheels to turn or food for thought or helping you think outside the box. I'm really big on just really sharing the knowledge because I think knowledge is power. So I really hope that the article that Matt and I ran across about just instilling good habits to our children really touched you in some way, shape, or form that's going to help you at least do one thing a little bit different that will help you make a difference in your life. So that's it for this week's episode of Turnkey Real Estate Investing. I'll see you next week.

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