Money Won’t Make you Rich. Teaching Children to read Before They can Talk

A lot of people believe that money will make them rich. This is why they leave school and go to university to become doctors, lawyers and other professionals that earn a lot of money. They believe that the more money they earn the richer they will become. But this is not true, generally speaking the more people earn the poorer they become because they get into more debt and buy more things that go down in value.Premium Vector | Education background with colorful education icon element

A friend of mine is highly specialized  funny videos for 5 year olds and earns a great deal of money. His wife is also highly specialized and has her own psychology practice, so they earn a lot of money. But so far all they have seemed to do with their money is accumulate more debt. Sure they have nice cars and nice furniture, but they are now required to work more than I do because their expenses are higher. Their money is not making them rich. It is making them comfortable, but it is not making them rich.

My friend has been talking to me about financial advice. It is sometimes interesting when you talk to people who earn a lot of money because they think that because they have the money they are more valuable to a partnership than me. But the funny thing is that i am more valuable to the partnership than them because money itself won’t make you rich, but what you do with your money makes you rich.

Lets say my friend had $100, 000 (which I know he either has or could accumulate quickly), with his financial education one of the best things he could do is put the money in the bank and earn 4% interest. He would then be taxed 50% on that interest earning him 2% overall (per year). The value of his money is going down 3%-5% per year from inflation meaning that he is ultimately losing 1%-3% per year on his $100, 000. That is a loss of $1, 000-$3, 000 per year. Now that is not a very good investment. I on the other hand can take $4, 000 and earn 25% tax free income by purchasing an asset. When inflation goes up my asset goes up in value and so does my return on investment, so i don’t lose money. I end up earning $1, 000 per year on $4, 000 while he loses $3, 000 per year on $100, 000. So as you can see it is not the money that makes you rich but the financial intelligence and why you do with the money that will make you rich.

Money Goes down In Value Over time
One of the reasons money doesn’t make you rich is because money goes down in value over time. The government can print as much money as they want (and they do). The more money they print the more your money becomes worth less and less. People say the cost of living is going up (this is also known as inflation) but really the buying power of money is going down. So by just saving money you are actually losing value every year as the buyer power of the dollar goes down.

Money Itself Doesn’t Make you Rich
Money doesn’t make you rich, but it is what you do with your money that makes you rich. Poor and middle classed people use their money to increase their expenses. They do this through buying bigger houses, more expensive cars and gadgets. As they get a pay rise their expenses go up and they end up with newer stuff but they are actually poorer than before and are constantly forced to work just to pay for their expenses. Rich people use their money to buy assets that generate them income. Because they buy assets their income is constantly going up. They can use to passive income (income they don’t have to work for) from their assets to pay for their expenses such as debt and expensive gadgets and cars etc.

You might have a lot of money, you might have very little. But the fact is that money doesn’t make you rich. What you do with your money will make you rich or poor and know what to do with your money ultimately determines how hard your money works for you. For me, with a good financial education, a little bit of money can work very hard for me. For someone else in a high paying job even millions of dollars won’t allow them to retire because their money doesn’t work hard for them. So if you want to be rich focus on increasing your financial education.

Becoming financially free in just 5 years is possible for anyone. It doesn’t matter what your current financial situation is, you can become rich and never have to work again in just 5 short years. You don’t need a high paying job or a get rich quick scheme, you just need real training on creating real strategies for getting rich.

Children from birth to age 3 listen to a lot of words and learn to speak. Their vocabularies grow as they get older and they learn how to rhyme and to blend sounds to ‘sound out’ words and memorize words by sight. Traditional public schools teach that children can’t really learn to read and comprehend until they reach 2nd & 3rd grades. Yet kids are learning to recognize words before they can speak and to start reading, aloud as soon as their language skills develop.

The more you read to a child at an early age, the quicker their skills develop. Young children are like sponges picking up information at faster rates than at any other time in their lives. They recognize words and are able to develop reading skills much faster than our school system gives them credit. Is it any wonder that our kids have troubles with words and numbers when we wait until kindergarten to start teaching them.

My nephew learned to read by age three. He is six now and amazes adults with his reading and comprehension, far beyond his years. He uses words and demonstrates understanding that leaves adults wondering how a child could know so much and carry on an intelligent conversation. It is so funny to see him in a DVD, game or book section reading aloud the covers before deciding his choice. Adults passing by are amazed that he can not only read adult level words, but actually understands what he reads. Believe me, he is kid through and through. He loves to play and sometimes is a ‘kooky knucklehead’, as i call him. We read to him before he could talk and as soon as he was able wanted to read the stories to us. As much as I would like to say it is in his genes, the fact is we took advantage of the very formative years and taught him. It didn’t take a lot of special time.

I’ve tried to search the web for information from doctors and psychologists, but they seem to tend to forget everything they teach about early childhood education and focus on formal education beginning about 5 years of age. They write about young children developing and picking up new skills at a faster rate than any other time in their lives, yet they undersell the learning potential they possess. We are doing our kids such a great disservice when we don’t recognize there potential to learn early on. We can so easily give them a head start on their education. It doesn’t depend on socio-economic status, but on our taking a few moments to teach them.

I recently found a program that gives you all the tools you need so you don’t have to fumble around. I wish I had discovered the program years ago. I could have been so much more effective with less effort. I take every chance to hand out information about this program so parents of babies and toddlers can give their children an advantage. Parents need to give their children all the advantage they can in preparation for life.

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