Epic Real Estate Investing - The Bad Financial Habits You're Teaching Your Kids You Don't Know About | 267

Episode Date: May 15, 2017

If financial freedom for your kids is the goal, demonstrating personal responsibility for your success is step one to showing them how. Grow your awareness of your financial habits to learn what works. Discover exactly how you can shape your behaviors to model wealth building habits for your kids with Epic Real Estate Investing. ______   The free course is new and improved!  To access to the two fastest and easiest strategies to a paycheck in real estate, go to FreeRealEstateInvestingCourse.com or text “FreeCourse” to 55678. What interests you most? • E.ducation • P.roperties • I.ncome • C.oaching Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Broadcasting from Terrio Studios in Glendale, California, it's time for Epic Real Estate Investing with Matt Terrio. Mm. Yeah. What's that? Hello. And welcome. Welcome to Epic Real Estate Investing.

This is the place where I show people how to escape the rat race using real estate. Now, if you're just getting started and or you are looking for new and creative ways of making money in real estate, I've put together a free course just for you, including a checklist on how to find motivated sellers, property owners that are willing and able to sell you their property at a discount. And to access that free course, go to free real estate investing course.com. Free real estate investing course.com. All righty.

So as I'm recording this, it's 6 a.m. on Sunday, Mother's Day. Happy Mother's Day to you all belatedly as you're listening to this. I just got back last night, Saturday night, midnight from a week-long vacation with my mom, my wife and my son in the Bahamas, had an amazing time. And on the flight, I was a long flight. I was reviewing the ticket sales that had come in for the upcoming epic intensive. And, you know, I was really pleased to see all of the different family members that are coming together, husband and wife teams, father and son, mother, daughter, brother, sister.

And it really made me smile as one of the primary inspirations for, and I don't know if I've really shared this or I haven't shared it to great length, but one of the primary inspirations for writing books and creating this show right here and creating a real estate investing academy and creating the epic wealth fund is all to leave a legacy of my knowledge and my experiences to my son. That's one of the primary inspirations. And if it's not the, I remember at the age of 34 when someone recommended the book, Rich Dad, Poor Dad to Me, you've heard the story many times.

I've shared it many times. And the first thing that I thought after reading that book was how different my life would have been if I, in high school, if they would have just, you know, swapped out, say, Catcher in the Rye or any one of the novels, the fictional novels that we read, if they would have just swapped out, say, catcher in the rife for rich dad, poor dad, how different life would have been? Because at the age of 34, you know, I had already experienced great financial success and lost it. You know, with a little bit of financial education from a book like rich dad, poor dad, I might have never lost it. Or at the very least, I would have

had a different mindset about finances and would have had a much better shot at keeping it. And yeah, after reading rich dad, poor dad, there weren't too many. There weren't too many. there weren't too many other sources of information out there that I could find whose financial principles were in alignment with Robert Kiyosaki's. And still, today, there aren't many more. I mean, it's been just the same basic, antiquated old school, old-fashioned financial education that's been around for 100 years. Very few out there are teaching stuff in alignment with,

Robert Kiyosaki's principles or what he kind of, I don't know, I guess the first one to really hit the mainstream. I don't know if there were his principles, but he certainly had it go mainstream. And to what I'm referring to is the principle of creating streams of income over piles of income, you know, creating streams versus piles. You know, and certainly I believe it's becoming more and more commonly known that streams of income and passive income and residual income and royalties and dividends and cash flow is all, that's the way to go. That's where the real wealth lies. But as that's becoming more commonly known,

how many are actually pursuing it as a priority? I mean, we all say we want financial freedom. We all agree that these streams of income, or we're all starting to agree that these streams of income is what's going to create that financial freedom, but how many are actually pursuing it? They say it's what they want, but are their actions actually following what they want? And I haven't conducted a survey. I have no official study to reference, but I've been doing this for a while and I've been helping a lot of people along this journey. And I'm willing to bet of the people who have made an investment in their financial education and of the smaller group within that group who has been exposed to the idea of streams of income over piles of income, it's an even smaller group within who actually practices what they've learned to pursue those streams of income over the piles of income. it's an even smaller group within who actually practices what they've learned to pursue those

streams of income over the piles of it. And there's a Chinese proverb that reads, to know and not do is to not know. So we all think we know, oh yeah, passive income. That's it. That's the way to go. And you say that you know that. But if you're not doing it, you don't. don't really know it. And I've always held this proverb close to my heart when I started over in life,

bagging groceries at the age of 34. You've heard the story. I went from a seven figure year to $7 an hour really quickly just because of change in how the music industry was working. And, you know, I've made it a point or really held this proverb close to my heart to, to learn from other people's mistakes and actually implement what I learned. You know, it's how my whole book, the first book I wrote Do-Over came about. I mean, it was all about the first part of my life in the music industry and all the terrible mistakes I made and having to learn from those mistakes and apply those into a totally different business, but business all the same of real estate. And, you know, as another saying is a smart man will learn from their mistakes. A wise man will learn from

others' mistakes. And I think it really took a rise and fall experience in my own life to learn this lesson as I was terrified and I still am today of falling again and I've gone through this rise and fall and I've been fortunate enough to pick myself up brush myself off and rise again and operating day to day with that underlying fear of potentially falling again with that underlying motivation because that really is probably my primary motivation it's what keeps me going it's what forces me to get up every single day and do what's required whether I like doing doing that stuff or not. It's the motivation that keeps me doing it.

With that underlying motivation, there's no new information that I'm closed off to. That fear has me very, has me have a very open mind. I mean, I consider everything that I read, everything that I hear, everything that I see. And, you know, for all of the stuff that makes sense to me, I apply it. For to know and not do is to not know.

And on top of all of that, I want to set a good example for my family and specifically my son. I don't know if he'll be my last child, but for right now, he's my priority. I don't want him to reach the age of 34 being financially illiterate like I was at that age. And looking back and after thousands of conversations, it's our parents from where we get our foundational financial education. So there's a major responsibility there that all parents have and very few realize the magnitude of that responsibility. And generally speaking, there are exceptions, of course, but generally speaking, rich parents teach their kids to be rich. Poor parents teach their kids to be poor. And the poor parents don't teach their kids to be poor on purpose.

No, it's not intentional. parents want the best for their kids and they do the very they're the very best that they can they do the very best that they know how to do for them it's just that people can only truly teach what they know and what they truly know per that chinese proverb is what they do what they truly know is what they do and what they do consistently and it's this awareness that i have about this subject that forces me to practice everything that I teach. Because I know if I teach something that I don't do, I don't really know it. So if I don't really know it, I have no right teaching it. So for me to make sure that my family and son learn what works financially, as early and as efficiently as possible, it's critical that I do everything that I teach.

And all that to say, what are you teaching your family? family and kids. I mean, what are you intending to teach and what are you actually teaching, I think is the better question. And if you don't have kids yet, what will you teach them? And what's what you, the quick answer to that is what you will teach them is what you are actually doing right now. And how do you feel about that? So coincidentally, or not, while on the plane, I stumbled upon an article written by Tom Corley at richhabits.net. And the article's title, in case you want to go read it for yourself, it's a good read, will your child be rich or poor?

15 poverty habits parents teach their children. And based on what I just shared with you, the article naturally caught my attention, because that's the top of mind and I'm always thinking about that. like, you know, my son is watching everything that I do. So I have to make sure that he's watching the right stuff. And, you know, so that article naturally caught my attention is I wanted to see if I'm inadvertently teaching my son any of these 15 poverty habits. That's like, oh my God, I hope I'm not doing this. As I'm aware of the almost infinite realm of information that is out there that is comprised of what we don't know that we don't know.

So I'm like, oh, somebody's got a list of 15 poverty habits that they're teaching their kids. Let me check. That's a lot of them. That's 15. I don't know if I've got all of those in checks. Let me go read this article. So I'm going to go ahead and I'll read the introduction to this article to provide some context. And also to just kind of let you know, if you're not teaching your kids to be financially successful,

understand that no one else is going to teach them either. So if you want your kids to be financially literate and financially successful, Understand it. It's all up to you. It begins and it's going to end with them, but how it ends with them is how it's going to begin with you. All right. So here's the article. It reads, again, Tom Corley is his name. This comes from over at rich habits.net. When I travel the country speaking to high school and college students about exactly what they need to do to become financially successful in life, I always begin my presentation by asking three questions. How many? want to be financially successful in life? How many think they will be financially successful in life? The second question. And almost every time I ask the first two questions, every hand rises in the air. Then I ask the magic third question. How many have taken a course in school on how to be financially successful in life? Not one hand raises in the air, ever, he says. Clearly 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. Is it any wonder that most Americans live paycheck to paycheck, that most Americans accumulate more debt than assets, that Many Americans lose their homes when they lose their job. Is it any wonder that most Americans cannot afford college for their children and that student loan debt is now the largest type of consumer debt? What's worse is what our children are being taught by their parents,

the school system, politicians, and the national media. They are teaching our children that the wealthy are corrupt, greedy, have too much wealth, and that this wealth needs to be redistributed. what kind of message do you think that sends to America's future generation? Is it teaching them that seeking financial success is bad and evil thing? Is it teaching them that seeking financial success is a bad and evil thing? So here are some statistics from this five-year study on the daily habits that separate the wealthy from the poor. Okay.

63% of self-made millionaires were required by their parents to read two or more non-fiction books every month, verse only 3% of the poor. 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. That's huge, in my opinion. Number two, 6% of the wealthy played the lottery, verse 77% of the poor. Number three, only 16% of the wealthy gambled regularly on sports, verse 52% of the poor. Number four, 82% of the self-made millionaires pursued a dream, verse 3% of the poor.

68% of the self-made millionaires said they learned success habits from their parents, verse only 6% of the poor. The lessons are coming from you. If it's to be for your children to experience financial success, 68% of them, 68% of the time, it's coming from you. And if you're poor, you only got a 6% shot at becoming financially successful through your parents. And we see what all the other available sources are to you

are essentially not on your side either. Next to that. 63% of the wealthy spent less than one hour per day on recreational internet use. 74% of the poor spent more than an hour a day on the internet. Let's see, 83% of the wealthy attended back to school night for their kids, verse 13% of the poor. That's very big gap right there. 83% of the wealthy attended back to school night for their kids,

verse 13% of the poor. 79% of the wealthy network, five hours or more per month verse 16% of the poor. That's big. There's a saying, I don't know who gets the credit for it, but I have always agreed with it 100%

that your net worth is determined by your net work. And as this stat says, 79% of the wealthy networked five hours or more per month versus 16% of the poor. Let's see, 100%. 100%

that means everybody of self-made millionaires had a success mentor none of the poor had a success mentor so who is the mentor in your children's life who is the mentor in your life

and I would even go further who was the mentor that your mentor had because it's 100% of self-made millionaires had a success mentor. And let's see. Here's another one. 63% of the wealthy had a positive optimistic mindset.

94% of the poor had a negative pessimistic mindset. I mean, if you're poor today or if you're in any sort of minority class, how could you have a positive mindset with the messages that are being thrown at you on a daily basis on how you are disadvantaged and you don't have a shot and you are entitled and everything needs to be given to you or else you're just doomed for life. That is really the general consensus and I'm not picking out any specific group. I'm just talking about the poor and the less privileged. However you want to label it, that's the message that's coming. So my point is how could you have a positive optimistic mindset when that is what you were hit with on a daily basis.

And 63% of the wealthy had a positive optimistic mindset. So there are 10 more stats here that I'm going to go ahead and I'll continue on tomorrow's Turnkey Real Estate Investing Show. And if you haven't tuned into that show, you can at turnkey real estate investing show. com. That'll take you right to the link and just click subscribe, turnkey, real estateinvesting show. and I'm going to share that on tomorrow's show there, the rest of this, as I think this is an important enough subject for both of my audiences, those who have more of a hands-on approach to

their real estate investing right here on the epic real estate investing show, and those who have more of a hands-off approach to their real estate investing on the turnkey real estate investing show. But the article goes on to sum it up. The fact is, 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. 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. And to bring it all

the way back, when reviewing the tickets sold thus far to the Epicintensive, it made me feel really good to see how many family members were participating together in their financial education. I mean, to witness as small as or as insignificant of a movement as it may be, that the epic intensive is bridging the gap of this country's financial education and inequalities made me feel really good, that at least it's not contributing more to the problem. We have enough sources out there that are doing that,

whether they know it or not. There's enough out there that's really causing, havoc in people's financial future. And so it just made me feel really good to see the families participating together at the Epic Intensive. There are a few seats left at the Epic Intensive. So if you've been on the fence on whether to attend or not, maybe this will push you over to join us. Make it about something bigger than just making a few bucks flip on a property. Make it about sharing the gift of financial education with your family, with your children. And at the very least, make it about expanding your own financial education and then take

action on what you learn, for you can only really teach what you do. Right. So go to epicintensive.com to reserve your seat. We're less than two weeks away. We'll be closing registration any day now. We're almost at capacity. So epicintensive.com, reserve your seat. And hey, if you can't make this event, I know this just wrapped up,

this very important subject is wrapped up into being an epic intensive promotion. but don't let that don't let the message here get lost in that. If you can't make this event, make it a point to put something for yourself on the calendar that's related to financial education. Whether it's this event or another event, it doesn't matter to me.

This is all in the interest of your well-being and your family's well-being and the legacy that you pass on to your children. Make it a point for something for yourself, to put something for yourself that's related to financial education. I'll put that on the count. calendar and don't stop with one event. Make it a regular practice to attend events like this.

Make it a regular practice to educate like this. I mean, look for a mentor, look for like minded of people to network with. That's all within the habits and make it and make it a practice to absorb nonfiction information. All of those were in the stats that we just read. And even if you just do this once a year, make it a point to attend and make it a point to take the family with you, take as many as you can with you. Because, you know, we just live in a society where money is very important, regardless of what anyone may say. It is very, very, very important. Nothing replaces it in which the way it serves us. It puts the food in our stomach.

It puts the roof over our head. It puts the clothes on our back. It pays all of the medical bills. And it allows us to do all of that good stuff for the people that we live. love too. Nothing replaces money in which way it serves us in our society. And if your family is on different pages of finances, life can be really, really tough. It can be really depressing. It can be tough to get out of that pessimistic and negative mindset. But when you're all on the same page financially, you will be unstoppable and capable of accomplishing great things. All righty. So that's it

for today. Tune into Turnkey Real Estate Investing tomorrow. That's it. turnkey real estate investing show.com. Tune in there tomorrow to catch the rest of the stats here that that separates the rich from the poor. And I'll go ahead and I'll cover the entire list of the 15 success habits. You should be instilling in your children. Should be instilling in all of our children. All right.

So if I don't see it tomorrow, I'll see you next week on another episode of Epic Real Estate Investing. God bless. And to your success, I'm Matt Terrio, living the dream. You've been listening to Epic Real Estate Investing, the World It holds foremost authority on separating the facts from the BS in real estate investing education. If you enjoyed this show, please take a minute to visit iTunes and share your thoughts. Thanks for listening. We'll see you next time here at Epic Real Estate Investing with Matt Terrio.

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