Thread by @darienpayton

1/ Many people don’t have money, in part, because they don’t talk about money.

(Thread)

2/ There’s a stark difference between the way wealthy people (WP) and non-wealthy people (NWP) approach conversations about money.

3/ I’ve noticed that this really starts at a young age (~ 2nd/3rd grade).

Many wealthy parents I know teach their kids a simple, yet effective concept:

You make money, you don’t earn it.

4/ Making money puts the ability to have as much as you need (and want) in your hands. It’s teaching responsibility.

Earning money restricts your income to someone else’s decision(s).

5/ This is reinforced with pushes towards occupations with high performance-based reward (e.g. markets trading, sales, c-suite, entrepreneurship).

6/ The point is that you don’t have to be an entrepreneur. Your pay just needs to be tied to your inputs rather than a capped salary.

7/ The second principle is exposure.

Exposure can be experiences, material possessions, networks, or access (physical or visual).

8a/ Quick story: December 2017 my mentor was talking our mentorship crew about goal setting for the New Year. That year he’d bought a new >$1M home, had traveled the country and made met his goals in business.

8b/ He encouraged us to set big goals for the new year and accomplish them through sharp clarity and discipline.

To prove it was possible, he showed us his checking account: north of $1M.

This is (visual) access.

9/ He has an open door policy to his home as well. If he’s home, we’re allowed to come over.

His home sits on several acres, with 3 luxury cars, a classic Jaguar (collector’s item), and a wine collection worth ~$100k

This is exposure to material possessions.

10/ The point of exposure is to bring the possibility of that type of wealth from the abstract into the concrete.

WP surround themselves around their dreams, because they’re big and the only way to make sense of it is to see it.

11/ The last thing is simple conversation.

How much money do you make? How much money do have? How much money is enough money? How do you budget? How much did you pay in taxes?

12/ These are almost completely absent in NWP communities. Money is taboo. The rule is you don’t ask how much someone makes or has. Ever.

13/ Like anything else in life, avoiding a subject doesn’t make it disappear, it makes it obscure.

Obscurity is the enemy of dreams. If your dream is obscure, it will evade you.

14/ Obscurity around money means that NWP will repeat cycles of poverty or stay in the (shrinking) middle-class.

15/ I once heard a conversation between two WP where one asked how much the other made the previous year. The answer: $16M after taxes.

16/ One of the reasons WP openly share this information is because they know the amount of money they have/make is minuscule compared to the amount in circulation.

They focus on being around others who can help them grow instead of pretending it doesn’t exist.

17/ That is perhaps the biggest advantage to knowing how much money someone has/makes.

If it’s more than you, ask why.

There’s wealth (literally) in knowing how WP make and spend their money.

18/ As long as these principles aren’t observed in non-wealthy communities, it’ll be difficult to create any type of significant wealth for families.

19/ I understand not everyone wants to be rich or wealthy. But these principles still work for whatever type of financial success is desired.

Correction:

This should say “output” rather than “input”

https://twitter.com/darienpayton/status/1082804731439910913?s=21