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A most important part of education is not widely taught in schools.  For many generations, our family taught financial concepts summarized as these.

  1. Frugal is good! The biggest misconception about having wealth is that you have to flaunt your wealth to show people that you are rich. Believe it or not, there may be wealthy people on your street and you would never know it. That’s because most wealthy people look like regular people because they don’t show off their wealth.  They are wealthy not only in monetary terms but are mentally and spiritually rich.  They are well grounded or you can say more rounded. They own regular homes and cars. They may have a few luxuries but most average wealthy people would rather not be spotted on an everyday basis because they prefer it to be that way and don’t flaunt their wealth.
  2. Be financially smart!  You have to learn the difference between a asset and a liability. An asset is something that puts money in your pocket without you having to do a much work for it. A liability is something that takes money out of your pockets and doesn’t put money in your pocket. If you want to be rich, you need to acquire as many assets as possible and get rid of as many liabilities as possible.
  3. Teach your family financial education!  There is a true saying that  says “many fortunes are lost after 3 generations”.  You should be concerned with teaching your kids the importance of having a great financial education as opposed to a typical education kids are taught in school which does not teaches proper financial knowledge. Well to do people know their kids aren’t going to the learn financial skills in school on how to create money with their ideas and businesses or learn the info they need to get rich and stay that way. Therefore, you need to teach your kid the real rules of money and value more than a college education. We are not saying not to go to school.  We are saying to teach them the importance of having a good financial education which is not taught in school. I recommend reading Rich Dad, Poor Dad by Robert Kiyosaki to your family, and your friends to develop a great financial education.
  4. Invest wisely! The well-to-do people are concerned with creating as much passive income as they can and working less and less for earned income. This, they know will help them keep not only accumulate more wealth but more importantly free their time for the pursue of their interest and more important goals in life. Most people who don’t know this spend their productive life working for a living and enslaved to the need of financial obligations – you can say they are slaved to money.  Your goal should be to earn as much passive income as you possibly can and convert earned income from a job into passive income.  Free yourself from being the only money earner in the family.  Make money work for you.  Have money work to create money. 
  5. Live within your means! and invest the rest. 

I also find that in the new generation, financial education is significantly lacking.  Here it is for Chinese readers.

  1. 节俭是美德!对财富的最大的误解就是:你需要向人们证明你很有钱并炫耀自己的财富。不管你相信与否,有可能你永远都不知道你某一个邻居是有钱人,这是因为最有钱的人看起来会像普通的人,因为他们不炫耀自己的财富。他们的富裕不仅仅在金钱上,更是在心理上和精神上。他们更加脚踏实地,或者可以说更加圆满充实。他们的住宅和汽车都很普通。他们可能有一些奢侈品,只是因为喜欢它们,但是平时并不喜欢被发现,也不炫耀自己的财富。
  2. 财务上的智慧!你要学会的资产和负债之间的差异。资产是什么,是不需要你做太多工作就能把钱放进你口袋的东西。负债是从你的口袋里拿钱,而不把钱放在你的口袋里的东西。如果你想成为富人,你需要获得尽可能多的资产,尽可能摆脱可能的负债。
  3. 教育你的家庭如何理财!一个说法叫:“富不过三代”。你应该关注教你的孩子有一个良好的财务教育的重要性,而不是进入典型的学校学一些并不恰当的金融知识。能够这样做的人都知道他们的孩子在学校学不到如何用创意想法或生意创造价值,或者如何变得并保持富有。因此,你需要教您的孩子关于金钱的真正的规则,而不是获得一个学历。我们不是说不去上学,我们只是强调财务教育的重要性,而这些财务教育是学校不提供的。我建议你​​和家人朋友一起阅读罗伯特清崎的“富爸爸,穷爸爸”,来开始财务教育
  4. 明智的投资!富裕的人所关心的是创造尽可能多的被动收入,因为他们可以越来越少的工作来获得收入。这样,他们不仅积累更多的财富,但更重要的拥有更多的子有时间来满足兴趣爱好并追求更重要的人生目标。大多数人谁不知道这一点。他们一生为生活和贷款辛苦工作-你可以说他们成为了金钱的奴隶。你的目标应该是获得尽可能多的被动收入,你可能可以将从工作中所赚取的收入转换成被动收入。让自己从家庭收入来源中时放出来吧,你可以让钱来赚钱。
  5. 量入为出,其余的用来投资。

In addition, for the one seeking higher education here are some Principles to remember:

  1. Rules are for the lesser however before you reach the supreme level rules are necessary.
  2. When using rules, the spirit of the rule is what counts.