Freedom First

CHAPTER 2Is it our family’s fault we aren’t rich?

Do you need a ‘Rich Dad’ to be rich?

The fact is that the majority of wealth created today is first generational wealth. Let that sink in. What that means is that if you’re rich, there’s a good chance your parents weren’t. Of course, the wealthy do try to pass their wealth on to their children — as we’ll see in a moment — but much new wealth besides that is created as well.

The whole idea that the rich teach their kids stuff about money that the poor and middle class don’t may be true, but it isn’t the reason you’re poor.

Matthew Klan

It’s important to note that while income mobility is greater than most people believe, it’s also not as great as it could be, especially since the most recent economic ‘recovery’. (Later I’ll introduce you to the idea of economic seasons, and why it’s so important to be in touch with them if you want to create wealth.) However, what we’ve been seeing around the world is a rejection of natural seasons — cycles are being flattened out, seasons are being tampered with.

The most natural thing after a big correction like the GFC is that the gap between the rich and the poor should decrease — after all, the rich have more to lose (the poor are already at the bottom).

What we saw instead was a massive stimulus that only served to re-inflate the assets of the rich, while the wages for the rest of the economy remained flat, due in part to other policies that were designed to kick-start the economy by ...