Tuesday, March 4, 2014

How To Get Rich - Do Not Eat Your Children

Do you think your family would survive if you ate a child ?

Do you think anyone would ever consider the thought ?

An outrageous thought but many do eat their children in a way !

Defining Your Child

Ok, now that I hopefully got your attention, let me explain what I define as a child.

From a financial point of view a child is a component of your life's savings. Whew, I bet you're all relieved now except for the few cannibals in the crowd. Actually, I don't think even cannibals would eat their children. Who would be left to carry on their cannibalism ?

All kidding aside, eating your financial children could kill your future family. At least it would kill your ability to have a comfortable retirement and possibly leave something to your biological children to help them in their future lives.

The Really Wealthy

Many of the really wealthy are really wealthy because they do not eat their children. Instead, they protect their children from all of life's dangers and encourage them to grow.

Of course I am talking about the wealth of the wealthy individuals.  They protect their wealth from all of life's financial dangers and look for ways to safely grow their wealth even more. Then there is the most important part of what they don't do. They don't spend more than what they actually earn from their invested wealth. In fact, as time goes on, the percentage of their earnings that they spend becomes less and less.

The biological children of the really wealthy are often termed "Trust Fund Kids" . Their kids are given a sum of money, but are only allowed to spend the income that the money makes. If they did not do this, their children would be eating the grand children so to speak.

What To Do

Ok, for all of you who are not really wealthy, what are you to do ? Well, remember that many of today's wealthy families were not wealthy several generations back. In fact many were poor or at best average way back. All it took was one ancestor to not eat their children and start the wealth chain growing. They continued by training their next generations to do the same things.

You can do this too starting right now. Simply save a portion of your earnings (say 10% or more) and never ever spend it. Invest it to earn more income and some day you may not have to work in order to survive. Your financial children could be providing all the income you will ever need.

Next, train your actual children and their children to do the same. Who knows, someday your future generations may take their place among the really wealthy. What a thought. Well, it's certainly a better thought than eating your children .

As always, I welcome your comments and suggestions for future topics.

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