Kit Roberts
A millionaire has shared the top tips he gives to his children to help them make as much money as he has.
Many of us have probably wondered at some point how we might go about making enough money to never have to work again.
Obviously, the best bit of advice if you want to get rich is to make sure you are born into a wealthy family and then use the opportunities from private education and financial security to build contacts and experience - but this is unhelpful for people who aren't that fortunate.
Jonathan Sanchez is a businessman who made his money in real estate, founding his business with his wife Jacqueline back in 2019.
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In the first 18 months, the couple got $4,000 a month worth of income from buying three rental properties, before paying off $250,000 of debt and gaining a net worth of $1 million.
Now, they have shared the tips they teach their children about financial responsibility.
You might not expect this, but Sanchez explained that this is to do with getting a stock portfolio going, which will generate money without them having to do any work at all.
"When I first said this to my kids, their eyes widened," he wrote. "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."
The millionaire said that he and his wife encourage their kids to set some money aside for emergencies, just in case they have a sudden expense.
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 explained that he wants his children to prioritize building financial stability for their future.
This also goes for when their income begins to get bigger as well, and to not necessarily splash out all the time.
"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 is as opposed to using a credit card to buy it and then paying off the debt in instalments.
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 revealed that putting off that gratification sometimes makes them realize that they didn't want that expensive thing that much to begin with.
And if you do really want it, there is a satisfaction in knowing that you've managed to save for it.
Sanchez said this is about trying to avoid children developing an 'easy come, easy go' attitude towards their 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."