What The Rich Won’t Tell You | What Rich People Teach Their Children
Get a trade.
That way, you will never starve to death.
Who here has heard some variation of that advice?
There’s nothing wrong with getting a trade. You can become a plumber
and you can become very wealthy as a plumber. But listen to the second half of that sentence.
Did she say “so that you can become all god intends
you to be”? Is it “so that you can let your light shine”
“so that you can become wealthy,” “so that you can achieve goals”?
No it’s “so that you never starve to death”. The thinking
comes from a place of desperation and that’s the thinking that’s handed down
generation to generation. The weird part is
it’s completely invisible to us. Take a look at the building
you see behind me there. That is an Industrial Revolution era factory.
It’s about 100, maybe 120 years ago. What other building that we have today
looks very similar to that factory? Schools. Yeah?
Schools, and here’s an interesting one, are ran
according to the Industrial Revolution age of thinking.
Picture this for a second. You drop your kids off at school
or you as a child or dropped off at school, and you line up in neat lines
and the foreman, I mean the teacher, blows the whistle or rings the bell
and in your neat lines you go to your workstation and you sit down.
You sit down at your little workstation and you work for a number of hours.
And then the foreman, I mean the teacher, blows the whistle, rings the bell,
and you take out your little lunch box and you can have some food.
Then the whistle goes again, you go back into your work station,
you sit down. It is run according to an Industrial Revolution
era factory. Why?
Because we are training human beings to be cogs in a system,
and we’re still doing it. Now I’m not picking on schools here.
The point is not to say that schools are badly run.
The point is just to say, we have thinking
that is invisible to us. We are trained to thought,
and we are culturalised to act in certain ways
that no longer make sense in the modern economy.
The old world thinking says “become a cog in a system.”
“Fit in. Don’t make waves,” “and if you’re a perfect cog,”
“you’ll get your little bit of money” “at the end of the day”
“and you can go home”. THAT (Word in the middle of screen in caps)
THINKING (Word in the middle of screen in caps)
WILL (Word in the middle of screen in caps) KEEP (Word in the middle of screen in caps)
YOU (Word in the middle of screen in caps) POOR. (Word in the middle of screen in caps)
I like to call that style of thinking “The Wheelbarrow Way”.
It basically goes like this. It’s like the parents,
get hold of their child, the young son, the young daughter,
they say, “my son, my daughter” “you are young and strong.”
“You must go out into the world” “and earn coins.”
“Here’s how you do it:” “pick up your wheelbarrow,”
“load it full of bricks” “and for every hour that you push your wheelbarrow,”
“you will get one coin.” “If you want a second coin,”
“you have to push your wheelbarrow” “for a second hour.”
Now we think like that. We go, “the only way to earn coins”
“is to work for a set number of hours.” “So let me go and get a job”
“and be dependent on a boss.” Now, you work your set number of hours everyday.
You push your wheelbarrow for your set number of hours
and a horrible thing starts to happen. You start to realize that
you can’t quite afford the car. You’re not quite breaking even
with the kids and their education and the debit orders and the bonds and so
on. So what do you do?
You go back to the thinking that was handed down to you.
And you say “if I’m not getting enough coins,” “what do I have to do?”
“I have to push a second wheelbarrow” “in the evenings”
“to get more coins.” That kind of thinking keeps families in
GENERATIONAL (Word in the middle of screen in caps)
CYCLES (Word in the middle of screen in caps) OF POVERTY. (Word in the middle of screen
in caps) If you take nothing else away from today,
this is the one principle that is the most important.
Do not tie your earning to the number of hours you work.
So long as we think a number of hours equals a number of coins,
we are in financial trouble. Because as a human being,
you only have so many hours in a day. The wealthy person’s epiphany,
the way of breaking out of this idea is this: dump the bricks in your wheelbarrow,
get rid of them. Load your wheelbarrow up with gold.
In other words, for every hour that you push that wheelbarrow,
you need to raise the value of your work.
Earn more coins per hour, not work more hours
in order to get more coins. Epiphany number one:
Resenting the wealthy says more about us
than it does about the wealthy. Has your family ever used a phrase like
“how the other half live” when they talk about rich people?
Yeah. You know what it’s like?
It’s like rich people are a different species.
The way that I’d like you to look at the difference between where you
are and wealth
is I want you to look at it as a curve. Because if it is a curve,
you can move along that curve.
You can go from where you are now to your goals.
But if you buy into that thinking that says “rich people are just a different species”,
then instead of a curve, there’s just a chasm.
There’s a hole. There is an absolute void between where you
are and where you to be.
And if you don’t believe that it’s possible to move along that transition,
you don’t act in ways that start to move you there.
The 1st, the starting point in becoming a high net worth individual,
is the belief that it is possible – that a wealthy person is not a different species,
they’re just further along on a continuum. They have more education about
what brings in money, and how to achieve goals
than what you currently have, and that’s okay because that represents hope.
That means you can learn these things, you can do them.
Resenting the wealthy says more about us, than it does about the wealthy.
We often think about wealthy people as “they’re obviously evil.”
“They’re obviously corrupt.” They obviously stepped on people’s faces”
“to get where they are now.” Forbes magazine paints a different picture
of that. They take the highest-earning individuals
on the planet, and they look at how much they give.
The stats bear out that wealthy people
give more per capita than anyone else.
We’re not just talking about more money because they actually have more.
We’re talking about more per individual in percentage form.
The idea that wealthy people are obviously stingy,
obviously evil, is not borne out by statistics.
Yeah of course there’s obviously the odd jerk. You will meet the odd horrible rich person.
They’re out there certainly in their numbers. But by and large, it is not a valid rule.
That’s number one. There’s a fantastic book.
It’s called “Outliers” by Malcolm Gladwell. He talks about the difference between
people who fail and succeed in anything.
And he talks about how in wealthy families
they teach their children something very different to what is taught in middle class
and poorer families. And it’s just how to interact with authority.
The middle classes and poorer people ARE TAUGHT (Word in the middle of screen in
caps) TO FEAR (Word in the middle of screen in caps)
AUTHORITY. (Word in the middle of screen in caps)
And it’s industrial revolution thinking, you’ve got to fear the guy who runs the factory
because he owns your life. Yeah?
And it goes like this. Let’s take a practical example.
They do this one in the book. You’re taking your child to the dentist.
The middle-class family will teach the child
that the dentist is God. He has studied for 8 years
and he knows everything there is to know. You as the child
must shut up, sit down,
keep quiet and even if it hurts
don’t cry. Just wait for it to be over.
Do whatever he tells you to do. Now in wealthy families
they approach the exact same situation completely differently.
Driving to the dentist’s office, they tell the child:
“the dentist is your friend.” “He has studied for 8 years”
“so that he can serve you properly.” How’s that?
“The dentist is a resource,” “that you can use.”
“If you have any questions” “about your mouth,”
“about your teeth,” “about anything that you want to know there,”
“you must ask the dentist” “because it’s his job to help you.”
Now take that kind of thinking, that’s a simple example – going to the dentist.
Take that kind of thinking and amplify it over the next 20 years.
Which of those 2 kids is going to do well in life?
You’ve got one who’s taught to fear authority, shut up,
keep your voice down, don’t make waves,
and the other one who’s taught, the world is there for you to utilise.
It’s all resources you can use it to your own ends.
Imagine the difference that that would make.
Represent yourself, and we need to teach our children,
to represent themselves as well. We have been conned
into an industrial revolution myth that says “authority’s in charge and knows best.”
“You must shut up and do what you’re told.” “You must be a cog in a system.” “And as long as you are doing your job perfectly”
“and not making waves,” “you’ll be fine.”
That thinking is a hundred years outdated. We cannot teach it any longer.
And I thought to myself, just a mental exercise,
if I was stripped of all of the stuff
that I use everyday. The suit, the car, the equipment,
the bits and pieces, the toys.
If I was stripped of all of that and just left
with my knowledge, my wits and my education,
and put into this scenario, living in abject poverty,
could I get back out? Could I get back out and back to my own life?
What do you think? And could you?
Yeah? Okay. Most of the people around this room
are kind of saying yes. Now that’s an interesting thought.
Let’s take that thought one step further. If I had to take
a high net worth individual, someone who does drive the Ferrari,
the Lamborghini, someone with their own private helicopter
with their own business, whatever the case might be,
and I transplanted them into your life. Do you think they would be able to get back
out? If we say yes to that,
then what we’re saying, is the gap between where you are,
and where that person is, is up here.
Isn’t that a horrifying thought? But at the same time, it represents hope,
because it means it can be done.
It means that the thought is out there,
the ideas are out there, the knowledge, the education
is available. It can be done.
We’ve been taught for generations that to play it safe,
you get a job and don’t make waves.
I contend that that is the most dangerous thing
that you can possibly do. Because
you are taking all of your eggs and putting them in one basket.
You are taking your life, your future, your career, your spouse,
your children, your medical aids, your debit orders,
your entire life, putting them into one basket
and handing them to a person whose first concern is
not your welfare. That sounds pretty dangerous to me.
Also, 60, 70 years ago,
people did go and get a job and work for 40, 50 years and retire safely.
Does that happen anymore? Heck no. It’s just not the reality.
Most companies these days, if you’ve got a job,
you have 31 days of safety. That’s it.
Now let’s look at this differently. People say being an entrepreneur
is risky. Being your own boss is risky.
Well, Forbes magazine says the only people who are wealthy
are their own bosses. Okay?
The next thing is, if you as an entrepreneur,
try 10 big crazy inspired ideas and 8 of them fail.
You’ve got 2 of them working. Now you go out there and you try another
10 big crazy inspired ideas and again,
8 of them fail. 2 of them work.
Now you’re up to 4 things that are bringing in income.
You go out there, 10 big things, 8 fail, 2 more, you’re up to 6 different things
that are bringing in income. For myself as a speaker,
I now have multiple income streams. I speak, I train, I sell books,
I sell DVDs, I do media appearances, multiple streams of income,
safer. RISKY (Word in the middle of screen in caps)
IS THE NEW (Word in the middle of screen in caps)
SAFE. (Word in the middle of screen in caps) Safe is the new risky.
And the more we buy into the old Industrial Revolution era idea,
that having a boss take care of us is safe, the greater the danger we put our own lives
in. Risky is the new safe.
Safe is the new risky. I believe
that risk aversion is one of the things
that paralyzes most of the people in the middle class.
Your average high net worth individual, has been bankrupt 3 times.
How scary is the idea of going bankrupt to you?
Yeah? To them it’s a matter of course.
They’ve tried big crazy things. They’ve tried building up businesses
and they’ve utterly utterly failed. But to them it’s only part of the process.
And they do something interesting. And I’d like to invite you to do this.
They give themselves PERMISSION (Word in the middle of screen in
caps) TO FAIL. (Word in the middle of screen in
caps) Folks, today,
at this early stage in your career, make that commitment to yourself.
Do yourself a favour. GIVE (Word in the middle of screen in caps)
YOURSELF (Word in the middle of screen in caps)
PERMISSION (Word in the middle of screen in caps)
TO FAIL. (Word in the middle of screen in caps)
It’s okay. It’s only a bit of embarrassment.
It’s only an bit of skin off the knees. It’s only picking yourself up
and trying again. Give yourself permission to fail.
Here’s a revolutionary thought: give other people permission
to laugh at you and mock you
for trying. Let that be okay.
Say “I know my family’s not gonna understand.” “I know my friends are going to laugh at
me.” “They’re gonna tell me this is crazy,”
“you should play it safe and get a job.” Give them permission to think that way.
Give them permission to laugh at you. Give yourself permission to try and fail.
You need the space, you need the leeway.
Be kind to yourself. My final parting thought for today is just
this: you are not separated
from your goals by a number of years.
You are separated from your goals by a number of actions.
And that’s completely different. Years – years are an abstract concept.
That’s like saying “10, 20 years from now,” “I’ll be wealthy.”
It’s not up to years. It’s up to you and your actions,
that puts the ball back in your hand, that gives you control,
that gives you the power. You’re not separated from your goals
by a number of years. You’re separated from your goals
by a number of actions. The word is
“as a man thinks,” “so is he.”
So ladies and gentlemen, DON’T (Word in the middle of screen in caps)
THINK (Word in the middle of screen in caps) POOR. (Word in the middle of screen in caps)