Generational Wealth: How to build and keep it
We spend almost half of our existence working and creating a life that we will enjoy. But to what end? I believe that we have been programmed to just chase after material things. For most of us, the focus is on the now and rightfully so. Depending on your income, you may not have the liberty to plan. Your primary objective is to get through the day. I am a hip-hop fanatic mainly because they use their lyrics to give you a glimpse of their lives. If you listen to Meek Mill and TI, being in the hood was not the best set-up. Waka Flocka is on record saying that he didn’t expect to reach his 30th birthday. Our surroundings have a ripple effect on many other aspects of our life. Now, however, they are in a position to build generational wealth. Having gone through the various hardships, they know what it means to lack the most fundamental necessities.
When people open businesses, I am always curious to know their plan for the long term. Creating generational wealth, I believe, is a good reason why people are encouraged to start their businesses. Having written a few research papers on generational wealth, I noted that it’s all about leaving a notable inheritance for your descendants. In the recent past, this approach might not have been a priority for many people. The conditions at the time could not allow for this kind of mindset. Now I believe with the knowledge we have, it’s a viable endeavor. Outsourcing the services of essay writing services has helped me understand more about it. For those who are against it, they believe each generation should be responsible for their success. On the flip side, some people support this concept. From their viewpoint, providing a safe landing spot for your descendants gives them an edge. Regardless of your position on the matter, here are a few things you could learn on the same.
What is generational wealth anyway?
This is wealth that is passed down from one generation to another. The ability to leave something for your children and grandchildren is a contribution to generational wealth. With this kind of wealth, the focus is primarily on financial resources. These are assets like a business, real estate, stock market shares, or anything that offers monetary value. Also, financial education to equip them with the relevant skills makes all the difference.
How do you build generational wealth?
- Invest in passive income
Passive income is the funds you get without necessarily working hard to earn or maintain. Investing in avenues that generate revenue is the best way to earn passive income. This is what the likes of Bill Gates depend on sustainability. Conduct your research and invest in organizations with high returns. Create wealth by spending on ventures that will build you an income, year after year.
- Have multiple streams of income
I cannot emphasize enough the need to have different streams of income. Life is so fluid, and things can change in an instant. Different streams of income will benefit you. There is only so much you can do with one income source. Our economy is changing, making it necessary to diversify your income streams. In the long term, your children and grandchildren will benefit from this.
- Invest in real estate
The real estate business is taking shape in the country. As a tangible asset, it is a resource that your beneficiaries can enjoy. The cash flow of the real estate business is an ongoing process unless people vacate your premises. Also, the value of homes is continually appreciating and increasing in value over long periods. Real estate is a sure bet if you are looking to build generational wealth.
- Have a business you can pass down
Successful business ventures are essential when you are building wealth. Many people like the idea of having a business that is managed and maintained within family life. Studies show that 90% of enterprises in North America are family-owned. While it’s a good idea, you need to be strategic and smart about who takes over. Many of these firms don’t make it to the 3rd generation. The one who takes after you should be conversant and more than anything interested in the business.
- Invest in stocks
Stocks are hands down the best move if you are trying to build long term wealth. Even during periods when the market is volatile, you still can be assured that the stocks are on sale. Conduct your due diligence and find something that works for you.
How do you keep it?
- Have a plan
Know how you want this wealth distributed and managed. Disregarding the importance of a plan is how you end up losing everything you worked for. If you want the wealth passed on to family members, make that clear. The plan you have will depend on your goals and assets.
- Spend your money wisely.
The success of this venture depends on your ability to make sound financial decisions. How are you spending your cash? What is your long term plan? Every move you make should be towards building a secure financial future for yourself and the generations afterward.
- Embrace the learning process
Life is a learning journey. Be open about learning new ways and tricks to do things. In this digital era, new concepts keep emerging. You will discover new investments that make your financial journey easier. Also, you will find new ideas that you could venture into and secure the future. Learn as much as you can, especially in the attainment and management of financial goals.