When I travel talking to high school and college students about what they need to do to be financially successful or if they know millionaire habits, I always start my presentation by asking the same three questions:
- “How many want to be financially successful in life?”
- “How many do you think will be financially successful in life?”
Almost every time I ask the first two questions, all hands go up in the air. Then I ask the third question:
- “How many have taken a course in high school or college on how to be financially successful in life?”
Clearly, every student wants to succeed and believes they will succeed, but none have been taught how. Not by their parents or their teachers.
Also read: 5 financial mistakes that harm your bank account and your life.
Not only are there no courses on the basics of financial success, but there are no structured courses that teach basic financial literacy.
Is it any wonder that most people live month to month on their salary? That the majority accumulate more debts than assets? That many lose their homes when they lose their jobs?
Is it any wonder so many can’t afford to put their children through college and that student loan debt is now the largest type of consumer debt?
We are raising our children to be financially illiterate and fail in life.
Parents who mentor their children to success teach them good daily habits. They teach them millionaire habits.
These millionaire habits put them on autopilot for financial success later in life.
Also read: 7 financial habits that will increase the money you have in your account.
In my five-year study where I compared the daily habits of millionaires against the habits of those struggling with poverty, I discovered specific millionaire habits that separate the rich from the poor.
I would like to share some of what I found:
14 millionaire habits that all children need to be successful.
1. Read to learn.
63% of the millionaires in my study were persuaded by their parents to read to learn.
Their parents made them read two or more books each month on topics such as: history, biographies of successful people, science, self-improvement, etc.
Only 3% of the poor said that their parents influenced them to do so.
Also read: Why read? Know why your intelligence increases.
2. Don’t play the lottery.
6% of the rich in my study played the lottery versus 77% of the poor. Worse, the poor admitted to playing the lottery every week.
3. Follow your dreams.
82% of the millionaires in my study followed a dream versus 3% of the poor. By far, the richest in my study were individuals who followed a dream.
On average, they accumulated $7.4 million in net worth during their lifetimes.
4. Eat healthy.
21% of the wealthy in my study were 30 pounds or more overweight, compared to 66% of the poor.
78% of self-made millionaires ate less than 300 calories of junk food a day. 97% of the poor exceeded 300 calories of bad food a day.
5. Avoid wasting time.
63% of the wealthy in my study spent less than 1 hour per day recreationally using the Internet. 74% of the poor spend more than one hour a day on the Internet.
67% of the rich watched less than 1 hour of TV per day, compared to 23% of the poor who spend more than 1 hour per day in front of the television.
6. That parents invest in their education.
83% of the wealthy in my study attended back-to-school night for their children vs. 13% of the poor.
29% of the wealthy had one or more children who made the honor roll vs. 4% of the poor.
7. Invest in daily self-improvement.
63% of the wealthy in my study listened to audiobooks during their daily commute versus 5% of the poor.
Kids have smartphones and this makes it easy for them to download audiobooks to listen to.
It may interest you: Books in Spanish for entrepreneurs.
8. Spend less than they earn.
73% of the rich in my study formed the habit of spending less than they earned long before they were rich.
95% of the poor were never taught this habit. Not their parents, not their teachers, not any other mentor in life.
9. Build relationships with other people with a success mindset.
79% of the wealthy in my study networked with other positive-minded people 5 hours or more per month vs. 16% of the poor.
10. Understand the relationship between work and luck.
92% of the wealthy in my study said they created their own good luck through hard work, persistence, daily practice, determination, and goal achievement.
79% of the poor believed that the rich were rich because they were lucky.
11. Take responsibility for your situation.
79% of the wealthy in my study indicated that they believed they were individually responsible for their financial circumstances.
82% of the poor believed they were poor because they were born and raised in a poor home. For your information, 41% of the millionaires in my study were born and raised in a poor household.
12. Do aerobic exercise.
95% of the millionaires in my study exercised aerobically 30 minutes or more per day, four days a week. Only 23% of the poor did the same.
Studies have shown that daily aerobic exercise improves health, brain efficiency, and IQ. (If you want to know other 8 ways to get smarter, click here)
13. Seek successful mentors.
100% of self-made millionaires had a successful mentor in life. Success Mentors will put you on the fast track to success. They teach you what to do and what not to do.
They also teach you the habits you will need to succeed in life. Typically, these mentors were either a parent or a mentor who took an interest in them at work.
None of the poor in my study said they had successful mentors in their lives.
14. Let go of negativity.
63% of the rich in my study had an optimistic and positive mindset. 94% of the poor had a negative and pessimistic mentality. Studies have shown that a negative mental outlook inhibits and depresses brain function.
Also read:
What is the responsibility of parents?
The fact is that the poor are poor because they have too many bad habits and not enough millionaire habits.
And the parents are to blame.
We do not have a wealth gap in the world; we have a gap between parents. We don’t have income inequality; we have inequality between parents.
According to a Brown University study that looked at the habits of 50,000 families, study author Dr. Pressman found that most of our adult habits were formed by the age of nine.
In another study, Nicholas Christakis found that habits spread throughout our social network.
Since children spend most of their early life with their parents, these two studies show the critical role that parents play in the habits that we all forge in life. Parents are responsible for forging millionaire habits.
Rich Parents vs Poor Parents.
And my study of Rich Habits corroborates this.
- 68% of millionaires said they got most of their millionaire habits from their parents.
- 94% of the poor stated that they also adopted most of their habits from their parents.
But if parents don’t teach their children good daily success habits, what should we do?
What is the solution?
Luckily there are teachers. They need to step in and teach the kids these million dollar habits.
From my research, I’ve learned that all it takes is one or two million-dollar habits to completely transform a life. Like the habits of:
- Reading, by itself, can prepare your children for career success.
- Saving, by itself, can help your children become financially independent.
- Exercising, by itself, can prepare your children for a long and healthy life.
Lastly, secondary schools should provide specific financial education courses to their students starting in the first year. It must be a multi-level curriculum that includes the following courses such as:
- Pay bills and balance a checkbook.
- Save and invest your savings.
- Insurance works: auto insurance, homeowners insurance, health insurance, and understanding student loans.
- Fundamentals of personal income tax.
It would also be helpful if they knew how to budget.
It’s unfortunate, but none of these financial education courses are required at most schools.
And remember, if you are really interested in creating your own business, you can read our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
