Many people’s dream is building a lasting legacy by acquiring generational wealth so that their future generations can live comfortably. It’s impossible to guarantee that your future generations will face no financial issues, but at the very least they’ll have a foundation and understanding of financial responsibility.

 

What Is Generational Wealth?

Generational wealth is exactly how it sounds: assets that are passed down to each generation. Generational wealth can be anything from cash and savings to family businesses.

Obviously, wealthier families will be able to leave more money for their future generations, but anyone can try to build up a legacy for their family.

Generational wealth has more of a chance of lasting when the future generations of your family are instilled with family values regarding it. When these future generations are taught about the importance of building wealth for the future, then they will be more likely to pass it on to their future generations.

 

Instilling Financial Values In Your Children

Teaching the importance of budgeting and saving money is a great jumping-off point for instilling financial literacy in your children. Providing your children with an allowance early on is one way you can start teaching about money when they’re young.

If possible, you should also try to set up a retirement account for your children while they’re still young. If it’s not possible for you to set up the account, you can still educate them on the importance of setting up retirement accounts at a young age.

As your children grow older and have a larger understanding of the world and finances, they could learn about how to properly invest in things like stocks and real estate.

Another way to give your children values regarding money is encouraging them to get involved in volunteering for those who are less fortunate. There are even many foundations and programs that dedicate themselves to teaching financial literacy to groups of all ages, so your children could learn a lot by being involved in such groups.

 

How Can I Build Wealth?

No one will have the same strategies for how they build their generational wealth, as no one has the same income, budget, debts, etc. However, everyone can use the same basic strategies to get themselves started.

Having multiple sources of income is one such way to ensure that you have enough money coming in to save and spend on necessities. There are a few different ways you can pursue having multiple streams of income. You could pick up an extra job, become a delivery or rideshare driver, become an Etsy or eBay seller, and invest.

Investments are extremely helpful for growing your wealth. Therefore, you want to begin investing as soon as you can. Investing doesn’t require you to dump thousands of dollars every time; if you don’t have the finances to invest a lot of money in the beginning, smaller amounts of money can still make a difference.

Life insurance can be crucial for leaving wealth for future generations. Sadly, life can throw us curve balls with sudden accidents and illnesses, so it’s good to have the safety net of life insurance. The death of a loved one can be a large financial blow, especially when the death is sudden.

Setting up an estate plan typically goes hand-in-hand with life insurance. This establishes what happens to your assets when you die.

Writing up a will is one way to communicate with your family about your wishes once you’re gone, and we will talk more about the importance of communicating with everyone later.

In your will, you should determine your specific beneficiaries for specific assets. Trust funds are an option to consider if you have any minors in your estate that you want to be taken care of financially.

 

Start Building Your Legacy Today

If you have begun the process of building your own generational wealth and want to touch base with a professional, we’d love to assist you. Reach out to us today if you want assistance from consultants that consider you and your goals!

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