By Andrew Amaechi Original: 12/1/2020

Who doesn’t love financial security? But, is financial security all there is in your future? What if you could build a legacy—generational wealth that lasts a lifetime?

Let’s examine different ways to not only look at building wealth, but how you can build enough wealth that it lasts for generations.

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What is Generational Wealth?

Money is great, but building wealth means that you’re creating a portfolio of assets that expand beyond the money you’ll need today. Generational wealth looks beyond even your retirement. It focuses on leaving a legacy and financial wealth that will continue for years to come—for your children, your children’s children and so on.

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“My great-great-grandchildren already rich That's a lot of brown chi'r'en on your Forbes list”

- BEYONCE

This gives your family the opportunity to thrive and is advantageous to help them pursue their life goals. This kind of wealth takes away a lot of the stress that money compounds for families everywhere. Not having to worry about where you’ll come up with the means to cover your bills takes a load off your shoulders. Learning how to build generational wealth affords you the ability to help your family when you’re no longer able to be there.

How do You Create Generational Wealth?

There are different ways to build generational wealth, but the most important one is to invest in yourself. By investing in your education and financial literacy, you’ll have the means to continually make strides in your life.

1. INVEST IN YOURSELF: Here’s a list of different ways you can invest in yourself. By furthering your education, exposing yourself to leaders and those who are wealth builders, you can expand your horizons in learning and growing your wisdom and wealth.

· Focus on both your personal and professional development.

· Take courses and pursue higher education.

· Listen to podcasts that can introduce you to various perspectives and new ideas.

· Attend Conferences such as BYOB: Build Your Own Brand, AfroTech (MultiCultural Tech Conference), and CultureCon (a Conference for creatives).

2. Invest in Real Estate: Real estate is a good place to consider investing. Even if you don’t have enough money to buy in on your own, there are individuals that combine their resources to invest in both residential and commercial real estate assets together. You can choose to invest in real estate ETF’s or real estate mutual funds. Look at real estate investment groups. Consider flipping homes or becoming a landlord. Look into sites like Fundrise, PeerStreet, or Crowd Street that provide robust platforms for people to invest in various assets.

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“I’m investing in real and estate (uh-huh)”

- Da Baby

3. Invest in Stocks: When it comes to building generational wealth, stocks are an opportunity to either play it safe and conservative or be more aggressive based on your investing style. Sites like Robinhood, Public and E*Trade provide an easy way to get your foot in the door and learn as you go. If you’re not sure what you’re doing and not ready to jump in, talk to a financial consultant or planner, and see if there’s a path that would work for you to get started.

4. Set up life insurance: Life insurance can help build generational wealth by having money set aside if something should happen to you. There are different tier levels to consider and often times it has to do with how much risk is involved. Speak with an advisor when you’re getting started so that you make the right choices for your family.

5. Create multiple streams of income: One way to bring in more wealth is by NOT SIMPLY RELYING ON ONE STREAM OF INCOME. By creating channels of passive income, you’ll have money coming in from work you put in ahead of time. Think about it like putting money in a savings account, and the savings account pays you interest. Only, in this case, most saving accounts these days don’t pay much, but you the general idea. It’s like writing a book. You do the work once, but the efforts continue to keep paying you over time.

6. Invest in the education of your children. By putting money aside for their expenses and learning, they won’t be bogged down by student loans, unable to build wealth when they finish their degree. Setting up an account to pay for the education of your children will go a long way in helping them avoid the trap of non-stop loan payments they can’t get out from under. While you’re at it, be sure to teach your children about growing wealth and INVEST IN THEIR FINANCIAL LITERACY.

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7. Spend strategically. Understanding when to invest, when to save, and where to spend money is an important piece of the puzzle. THE KEY TO BUILDING WEALTH IS IN COLLECTING ASSETS, NOT DEBT. Invest in things that will make more money for you, not satisfy the urge for a new toy, like a fancy car. Debt will drag you down, while assets will lift you up. It’s not about never getting anything for yourself but consider if something is worth that credit card debt. Understand how long you’ll be paying something off.

When it comes to building your legacy and generational wealth, it’s about stopping and thinking about the future, and investing in ways to create wealth rather than collect debt.

Let’s recap.

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Conclusion

Generational wealth is about creating enough wealth that it stays in your family for years to come. These investments help your children and their children, by creating advantages and opportunities to help them through their life.

It’s easy to read an article and get caught up in the moment, but without taking that first action, you won’t see a difference. Figure out which step you’ll take first toward building your legacy, so you can finally start making choices that will impact your bottom line.

· Invest in yourself

· Invest in real estate

· Invest in stocks

· Set up life insurance

· Create multiple streams of income

· Invest in the education of your children

· Spend strategically

Which step stands out to you? If you’re worried about funds and can’t invest in stocks right now, consider investing in yourself. There are plenty of free courses online as a place to start. Read books, listen to podcasts, learn more about investing, or make a list of ideas that can help you build a passive income stream.

One of the biggest hurdles people face is staying motivated. What will you do to stay on the right path and continue motivating yourself if things move slowly? Building wealth doesn’t happen overnight unless you hit the lottery, so make a plan and start investing in your future.

What different ways can you grow your income? Where can you spend more strategically? Is there a way to alleviate acquired debt? By making changes today, you’ll be on your way to a healthier financial future.

If you found this article helpful, please tell a friend to tell a friend, so others can learn about building their wealth, too.

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