Our son is almost 18 months old – which means he is just 6 months away from turning 2!
This means we are now starting to think about our childcare options for him and having discussions about parenting and schooling.
Things you don’t think about at all until you have children!
I read a great article the other day that really got me thinking. It was titled “7 Lessons To Raise Your Kids as Good Entrepreneurs, Not Good Employees”
In the article it says:
“Here’s the thing: Most parents instinctively try to “manage” their children. They try to make them obedient, predictable. They give them an allowance, often tied to chores, and if the kiddos get too “unmanageable,” they give them projects to keep them busy.”
They give a great description of the employee vs. the entrepreneur:
“Good employees are obedient and willing to work hard at projects given to them by someone else. They accept a cap on their income in exchange for stability, predictability, and routine.”
“Good entrepreneurs are a different breed altogether. Creativity? Check. Self-discipline and motivation? Check. Independence? Courage to take calculated risks? Ambition to change the world? Check, check, check.”
When we raise our children, what are we doing to cultivate their future mindset and ambitions – are we raising entrepreneurs or employees.
I am no parenting expert, we are learning as we go, but it is some good food for thought.
At the end of the day, no matter what our style of parenting or our belief system may be, there is one thing all parents share.
We want our children to have a good life, and we want them to be able to afford and experience all the best things.
Being the children of immigrant parents, this is why we were told to go to school and get good, steady paying jobs.
Many of our families came from countries where there was great economic uncertainty, and our parents wanted stability for us.
But here is the thing, the honest truth. Going to school and getting a good job just doesn’t cut it anymore.
Check out this chart
If we look at the historical data of Median hourly wage (red line) and Median home price (blue line) – one can see two things.
- The hourly wage seems to be a much more steady growth compared to a more exponential growth in home prices
- This obviously results in a larger and larger gap between the two
So what does this have to do with having a job? Well the cost of living (measured by home prices) is growing at a rate much higher than wage increases.
And how does one combat this? By finding a way to generate more income – either through business or income producing assets (such as real estate) – clearly the job front isn’t paying much higher!
Income producing assets are a great compliment to a job. When my wife and I started out, we saved and invested as much of our incomes as we could. Having employment allowed us to have a predictable income every month as we continued to grow our investments.
I am not advocating that getting an education or finding a job are not the way to go. All I am trying to convey is that it may not be enough to live the life you want, for yourself and for your children.
So until next time, happy Canadian Real Estate Investing.
Jose Jafferji, REIA
Your Real Estate Investment Advisor, Coach & Realtor