A millionaire has revealed the strategies he imparts to his children to help them achieve financial success akin to his own.
At some point, many of us have contemplated how to amass enough wealth to retire from work permanently.
The most straightforward advice for becoming rich is to be born into a wealthy family, leveraging the benefits of a privileged upbringing to secure opportunities and build connections. However, this is not applicable for those who aren’t as privileged.
Jonathan Sanchez is a successful entrepreneur who accumulated his wealth through real estate. He and his wife, Jacqueline, initiated their business venture in 2019.
Within the first 18 months, they generated $4,000 per month by acquiring three rental properties. They also managed to eliminate $250,000 in debt and amassed a net worth of $1 million.
Now, they’ve disclosed the financial lessons they impart to their children.
Interestingly, Sanchez has emphasized the significance of starting a stock portfolio, which can yield passive income without active work.
“When I first said this to my kids, their eyes widened,” he shared. “The idea of earning money in your sleep sounds like magic to a kid, and that’s exactly why it works.
“I explained that it’s not magic at all. It’s compound growth through investing.”
He and his wife also advise their children to maintain an emergency fund for unforeseen expenses.
He said: “When my son lost his retainer, he immediately offered to pay for a replacement.
“We covered the cost, of course, but I used it as a chance to praise his accountability and remind him why savings matter.”
Sanchez stresses the importance of his children focusing on building financial stability for the future.
This principle applies even as their earnings increase, urging them to avoid excessive spending.
“I remind them that as income grows, it’s tempting to buy bigger or flashier things,” he said. “But true freedom comes from having choices, not stuff. Saving and investing today means they won’t be trapped by bills tomorrow.”
This approach contrasts with using a credit card to make purchases and then gradually repay the debt.
Sanchez said: “When my kids want something, I encourage them to save up instead of using credit. The process teaches them discipline and self-control.”
He noted that sometimes delaying gratification leads them to realize they didn’t desire the expensive item as much as they initially thought.
If they truly want it, there is a sense of accomplishment in knowing they saved for it.
Sanchez aims to prevent his children from adopting an ‘easy come, easy go’ mindset regarding money.
“When kids earn something, whether it’s money, good grades, or sports awards, they value it differently,” he explained. “My kids take better care of the things they save for because they understand the effort it took to earn them.”