Reasons A Student Fails in Business and C Students have a Better Chance

Most people are prone to commonly believe that students who do well in school,
as in they get the highest grades will be more apt to work harder but this is not usually
the case for many reasons. Surprisingly, students who have more of an average grade
history are projected to do better in the business world. There are many different
considerations that most people do not realize when it comes to seeing the differences
between these two groups of individuals. These differences include things such as work
ethic and their basic attitude structure.

The talk verses the walk

This is a huge difference that you can vividly see between these two groups of
individuals. Most students that are the top of their class are big when it comes to talking
about all of the things that they are able to do. They always believe that they are the
smartest person in the room and often because of this mentality when it comes to
business, they often fall into the habit of promising things they are not able to fully
deliver on. Students on the other end of the equation, who may have done averagely in
school understand the benefits long term of under promising and over delivering. They
know that if you are stuck in the mindset that you are the smartest person in the room
that you will put yourself in a position where you have no one to learn from and nothing
to gain.

Me Mentality

Students that got the highest grades in school were the best of the best and
rarely team players. They fought hard to individually be the best at everything that they
set their mind too including grades and sports as well. They rarely have to work with
others to figure out how to solve problems because they feel the need to rush ahead
themselves and solve it in order to acquire the praise from their parents and teachers.
Students who received average grades in their formative years knew exactly how to
work with others to even out the workload as much as they possibly could. They had a
game plan to work smarter and not harder. They did homework together, studied
together and worked in packs to get everything passed in their classes. This set of
students obviously translated better into teams when they went into the business world
than those that only worked by themselves.

Credit Vs Blame

The individuals who are still riding the high of a 4.0 GPA and the praise from
high school and even college are seldom the first ones, if ever at all, to take the blame.
They have less experience in having to answer for doing something that did not meet
the highest of standards. They are the first ones to take credit when something goes
right but the last one to stand up and take responsibility when something tends to go
wrong. Average students are more prone to know how to properly take responsibility
when something was not done correctly. They take the blame when it is warranted.

Taking the High Road

It is a key quality for a business owner or anyone working in business for that
matter to be able to take the high road. You can see a clear difference between those
who know how to do this and those that do not. One of the places that this is clearly
seen is how they respond to negative reviews. Taking the high road is knowing how to
stay in your lane and focus on your growth while ignoring any negative commentary in
the other lane.

Conclusion

It may seem easy to believe that by praising the students who do well in school
that we are doing them a favor when in reality, it is not preparing them for the real world.
You can not take a prideful path when it comes to being in the business world. You
need to know how to work as a team, take the blame when necessary and work for the
better of the entire group rather than just themselves. You can not expect to simply be
an alpha and be diligent enough to get everything done on your own. In the end, a pack
mentality will be much more of a benefit in the long run.

Rich vs Poor Mindset

The variables that come to the table between those sitting down on the wealthy side and those sitting down on the opposite side have less to do with opportunity and more to do with their mindset. This is an important thing to acknowledge. Our background, our educational status and so many other variables are less impactful than the mindset that we have during our day to day lives. The mindset we choose to have will change absolutely everything. The mindset of the poor is commonly directed towards what they cannot afford and the mindset of the wealthy is more directed to how they can work to afford the things that they want.

Spending Habits

There are many differences between the spending habits of the wealthy and the spending habits of the poor. Those who are poor spend the money they make and then choose whether or not to invest what is left. Those who are on the wealthy side of the spectrum invest first and then spend when needed. The wealthy know that investing their money will result in long term cash flow while those on the poor end of the spectrum only care what the money they have can do for them in the here and now.

LLC Benefits

The wealthy know that having an LLC will protect their assets. If they are in a position where they are being sued, the person is actually suing a corporation or a company. There are layers that they will have to pierce to actually sue them directly and this is a very difficult task. The LLC also gives them the ability to write off more taxes from their business investments as well. People on the other end of the wealth spectrum are more often than not working a w-2 job and not able to get any tax breaks. Moreover, this thought process usually does not occur to them at all.

Investing

The wealthy and the poor handle their investments very differently. The wealthy are very active in their investments. They are aware of what is happening to their money on a regular basis. They find them personally, do extensive research, and understand the numbers and the fees involved in the investment. On the other hand, those on who are considered, “poor,” usually hand off their money to someone without any research involved. They hope for the best but are not truly aware of what is happening with their money at all. They do not fully take the time to understand the investment that they are making or have the knowledge to make the financial decision to invest at all.

Conclusion

Mindset is an invaluable asset when it comes to wealth. Those who are wealthy have an abundant mindset. They are purposeful about their spending habits and knowledgeable about where their money is going. They are direct about their objectives and they are fruitful in their investments. Those who are poor do not keep track of where their money is coming from or where it is going to. They may invest on a whim and hope for the best but they do not plan and follow their investments through to the end. This all comes down to the mindset that someone has. There is a clear line that draws the differences between the mindset of the wealthy and the mindset of the poor. If you can take the time to change your mindset, you can change your life.

The 3 Things you can teach your kids about Money

Difference Between an Asset and a Liability

Assets put money in your pocket. Think of a rental property, a business, a skill. A Liability is something that takes money out of your pocket (that is why your primary house is a liability) Credit Cards, your home, your car are all liabilities. Explain this in children’s terms using their allowance. Most kids will just buy liabilities. Candy, games, etc. But open their minds a bit. Have them save to buy a rake and then use that rake to rake yards in the neighborhood for a profit. Or buy business cards to pass out where they can pet sit. The rake and the business cards are assets for children because they are vehicles for them to make more money.

With my kids when they were little we would go pick up golf balls from the course and sell it the next day to the golfers for $1 a ball and $5 for the nice golf balls. My kids were easily making $100 a day. Those golf balls were producing a profit for them far greater than their allowance for picking up their room.

Explain why it is so important to have so many assets under your ownership

When they start seeing profitability from one of their assets explain to them they can have another one. Show them the more assets they have the more opportunity they have to make money. This is diversifying your assets. For example, if they buy a rake to rake leaves their profits will be highest in the fall and non-existent in the winter, so they need multiple assets, so they can withstand the highs and lows.

Cash Flow vs Capital Gains

This is a tough one to teach kids, for adults we understand this. We know if you try and flip a house or sell an asset that is it very risky. For one, you have to try and time the market perfectly and second you pay the highest tax rate even if you do so successfully. I believe it is like gambling, you may win one hand, but will eventually lose it all on red. This is a bit over a child’s head. Capital gains, tax, etc. What I don’t think is over their head is cash flow. So for this lesson, have them take their business and create a recurring revenue around it. For example, if they pet-sit for $15 an hour, tell their clients there is a $10 monthly fee to be able to book services at that price. If not, it is $25 an hour. Explain to their customers what you are trying to teach them. If you can show your kids a monthly cash flow that comes in without them having to go and find more business I think that is a great groundwork for the cashflow vs capital gains conversation later on when they are older.

Rich Vs Poor Mindset

The variables that come to the table between those sitting down on the wealthy side and those sitting down on the opposite side have less to do with opportunity and more to do with their mindset. This is an important thing to acknowledge. Our background, our educational status and so many other variables are less impactful than the mindset that we have during our day to day lives. The mindset we choose to have will change absolutely everything. The mindset of the poor is commonly directed towards what they cannot afford and the mindset of the wealthy is more directed to how they can work to afford the things that they want. 

Spending Habits

There are many differences between the spending habits of the wealthy and the spending habits of the poor. Those who are poor spend the money they make and then choose whether or not to invest what is left. Those who are on the wealthy side of the spectrum invest first and then spend when needed. The wealthy know that investing their money will result in long term cash flow while those on the poor end of the spectrum only care what the money they have can do for them in the here and now. 

LLC Benefits

The wealthy know that having an LLC will protect their assets. If they are in a position where they are being sued, the person is actually suing a corporation or a company. There are layers that they will have to pierce to actually sue them directly and this is a very difficult task. The LLC also gives them the ability to write off more taxes from their business investments as well. People on the other end of the wealth spectrum are more often than not working a w-2 job and not able to get any tax breaks. Moreover, this thought process usually does not occur to them at all. 

Investing

The wealthy and the poor handle their investments very differently. The wealthy are very active in their investments. They are aware of what is happening to their money on a regular basis. They find them personally, do extensive research, and understand the numbers and the fees involved in the investment. On the other hand, those on who are considered, “poor,” usually hand off their money to someone without any research involved. They hope for the best but are not truly aware of what is happening with their money at all. They do not fully take the time to understand the investment that they are making or have the knowledge to make the financial decision to invest at all. 

Conclusion

Mindset is an invaluable asset when it comes to wealth. Those who are wealthy have an abundant mindset. They are purposeful about their spending habits and knowledgeable about where their money is going. They are direct about their objectives and they are fruitful in their investments. Those who are poor do not keep track of where their money is coming from or where it is going to. They may invest on a whim and hope for the best but they do not plan and follow their investments through to the end. This all comes down to the mindset that someone has. There is a clear line that draws the differences between the mindset of the wealthy and the mindset of the poor. If you can take the time to change your mindset, you can change your life.