Generational Wealth is wealth that is passed down from one generation to the next through the accumulation of assets for the future to provide financial security and it is also about preserving your family name. Generational Wealth builds a legacy. To build generational wealth occurs over many lifetimes. If someone should ask you about your great-grandfather’s name, you might not know it and this is simply because he either did not build any name or legacy to pass on to his generations. To build generational wealth is to build on the financial success of past generations and by consciously erasing the poverty mindset and replacing with financial education of the wealthy elite.
Generational wealth is also called family wealth, multigenerational or legacy wealth’s wealth that is passed down from one generation to the next and it takes many forms. Generational wealth can be in the form of heirlooms, traditions, good genes, good names but what is generally known about generational wealth is ‘Financial Wealth’. Generational Wealth is built by acquiring generational stable assets.
The first generation normally works hard to build assets for the second generation to manage, build on it, enjoy some and also pass down to their children who will be the third generation and the process goes on down ward.
Anybody can be rich but staying rich and keeping the wealth is normally the problem and in reality, only a few are able to build generational wealth. These are the people who are hard working, knows the value of money, can save, invest and grow their money instead of spending it and have the well being of their generations at heart.
To successfully create generational wealth, all the skills that one learns has to be taught to your children, groom these children along, advise them as necessary as possible and give them directions as needed because if this is not done, be rest assured that whoever inherits these wealth will blow through it and break the chain or the cycle of wealth creation.
Nobody wants to live with poverty or to even see their family struggle to make ends meet. Sadly, a lot of families live with poverty from one generation to the next, so people would want to build assets that last longer to see their generations through life’s challenges. People who inherit wealth from their previous generations have advantage over others, for example the students don’t need to borrow to pay for tuition fee and student accommodation. They will not start life overwhelmed with debt. People who are indebted normally goes through a period of stress, sicknesses, diseases and these can even be passed down to generations so instead of generational blessings, the story of that family will be generational curse all because of poverty. On the other hand, those who have generational wealth have the ability to avoid these student loans as well as other debts that could cost them their livelihoods. Instead of debts, they are able to invest their inheritance into other income-generating assets which will constantly appreciate in value to pay for their fees and even their first homes.
To build generational wealth, you must work hard, be a forward thinker, be strategic in business and wealth building, you must own stuff, be a risk taker,
you have to have value for money. You have to render services or produce something of value in order to get money and lay down strategies to invest and manage the wealth.
It is not the absence of money that makes a person poor but the inability to manage the money you receive if you do not give value to it. It is also not about how much you earn but how much you are able to keep for yourself.
Honesty, integrity and ability to keep promises are intangible wealth which can also be converted to cash. They can all be exchanged for cash. Where there is integrity, there is trust. Build trust with friends, in business, at work and in everything you do.
Assets to pass down to your generations includes Land, Real Estates, Life Insurance, Businesses, Stocks and Shares, Bonds, Mutual Funds, Pension Funds, Collective Investment Schemes, Gold, Collectibles, Trust Fund, Treasury Bills etc. It is very important and recommended for everyone to start building wealth through some of the above mentioned assets. It is often said that the best time to have started any investment was twenty years ago, the next best time is now so start now.
MARY AYISI-BOADU
