Let me first share my disclaimer: I am in no way a financial advisor nor am I a financial expert. This blog post is based on the knowledge of what I’ve learned from the experts and what I apply in my own life.
Now that we’ve got that out of the way…let’s talk!
Alot of times, we don’t think about building generational wealth nor how important it is, especially having so many other priorities going on, did you know you can build generational wealth through having trusts, and life insurance? Not only that, saving a good amount of money and not buying so many unnecessary things helps as well. I will share some ways to build wealth later, some you may already know and some you may not know. What does generational wealth mean anyway and why is it so important?? How do you actually build it?? It’s an important conversation to have so, let’s talk about it!
What is Generational Wealth?
Generational wealth is wealth that is passed down from generation to generation by investing and accumulating assets to provide financial security for the future.
Having young children or planning to have children and a family is a good time to start looking further into investments and planning for the future. However, I have a 23y/o and a 2 y/o granddaughter, so for me educating my son based on my knowledge and what I know helps him with the planning of his future.
Building Something That Outlives You should be the ultimate goal to wealth building. It’s also good to have a financial advisor or talk to people who have actually done it or doing it. I like to stay surrounded by people who have these conversations about wealth building and are actually doing it. One thing I’ve learned is everyone builds wealth in different ways, what works for some may not work for others.
It starts with educating yourself and being surrounded by the right people who have these conversations. Alot of us are use to buying “things” that will never build generational wealth but learning to invest in things that actually have value and could bring possibly bring residual income is a good way to see a ROI (return on investment), something that I could see; money coming in vs going out. Acquiring assets, learning to save and making smart money investments that make sense is the goal.
After learning what building wealth meant to me and how to start building it, it became more important for me to start making better money decisions. I was inspired to read Rich Dad Poor Dad by Robert Kiyosaki, which is an awesome book and gives great scenarios on how the rich vs poor think. I also follow my favorite financial expert that gives it to you just like it is, Dave Ramsey.
Learning more about building wealth gave me a different perspective as it relates to saving my money, entrepreneurship, and how to handle my investments. When you take time to build a strategy that works for you and your family, stick to that and educate your children on the importance of building wealth for their family.
Now let’s go back, how important is this to you?” Do you know how to build wealth for generations??
If we aren’t taught, how would we know the importance of generational wealth and how to build it unless we talk about it? I’ve shared a few tips below that I hope will help.
Tips on ways to start building generational wealth based on what I’ve learned:
- Talk to a financial advisor
- Building multiple streams of income
- Specific types of real estate investing
- Saving a percentage of your income
- Invest in educating yourself; especially on your finances
- Be an optimist
- Take risks
- Educate your children about finances