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The Real Reason The Poor Stay Poor!

There is absolutely no way to deny the role of money and family wealth in the creation of the next generation wealth. Coming from a rich family provides capital, network, contacts and a safety net that gives rich kids an unfair advantage over the middle class and poor kids.

But it’s not only about that, it is also about the mindset.

How the rich are taught to become rich.

Often the kids from rich families are taught the basics of becoming rich. Rich people are usually educated enough to transfer this wisdom to their kids. This transfer of wisdom is a form of mentorship, if not full mentorship. This often does not apply to the families that fall into the 3 generation wealth cycle.

The mentorship teaches the kids to take risks, not only that, it also teaches them where the family wealth came from and they also learn indirectly how to reproduce the procedure. This wisdom can be limited to the family business, nevertheless, it molds the characters of the young kids into a character willing to take calculated risks. And gives even the average individual a successful plan to copy.

In a way, this mentorship gives these kids an unconscious goal of copying the successful formula the family has.

This free mentorship might be the most important unfair advantage these rich kids get. As often, they do stray outside the family business domain, and still land on their feet.

Why the poor stay poor ?

Again it’s about a mentality and indirect transmission of ideas. Poor kids learn to be employed, to be useful for someone else’s company. They have this unconscious goal, of having to fulfill basic security, food, shelter, etc… Thus when they achieve these basics, unconsciously they feel rewarded, and do not seek to take the risk of losing these achievements.

Poor kids very rarely get any mentorship, and even when they get it, it is often through the internet, it’s not something that they see daily in their household. And it’s not something that can apply fully to their conditions.

It can be generalized, it’s not only about wealth!

Learning about wealth is like learning about anything of importance, it is easier with mentorship. Take for example programming, electrical engineering, or even sculpture. It is way easier to become accomplished in any of these fields, if your dad is in the field.

A kid might want to learn programming, and even with the wealth of knowledge online, it is not that easy. Whereas if the dad is a programmer, he will be able to guide the kid properly. Choosing a programming language, help with errors, help with the logic and share of experience. Followup, push forward, motivate… The kid have multiple x factors of becoming a better programmer, if the dad is. This also applies to art, electrical engineering, and any skill. The same can be said about wealth, the mentorship role, can not be ignored.

And the reason why poor people stay poor, is because they lack the mentorship to help them move through social classes.

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Abdallah Alaili

I'm a serial entrepreneur (mostly tech) and micro-investor (tiny), this is a blog to learn from other entrepreneurs and spread the wisdom to many more. You can find me on: Instagram - Twitter - Linkedin - more about me