Can You Build Generational Wealth, And How To Do It

What is generational wealth and can you build it for yourself? Or is it just for those who already have it?

First of all, what is generational wealth?

Generational wealth is often considered to be assets that are passed down within the family.

Think of property, businesses and other investments.

Things that make you money, often without much effort from yourself.

This wealth can be passed down when a family member dies as an inheritance, or while they’re still alive, in form of cash gifts, or just covering big expenses.

These big expense could be higher education, or the purchase of property, both of which will help the receiver to build their own wealth.

The thing about money is that often having it in the first place will make it easier to make more.

Why?

A few reasons:

• The compounding effect (how interest earned adds up over time)
• Easier access to higher education often leading to higher paying jobs
• Property values often go up over long periods of time so owning sooner is better for capital gains
• If your parents are well connected to people with money, you might have opportunities you otherwise wouldn’t

But most importantly, often if your parents have created wealth, it is because they knew how to, and can teach you to do it too.

Financial literacy is something that is not taught in school, so it is up to your family to teach you.

And if they don’t, well, it is up to you to teach yourself.

How to build generational wealth

Building generational wealth is relatively simple, in theory at least.

You simply accumulate assets and pass them down to the next generation while you are still alive, or in your will when you die.

While it does sound simple, it can also feel overwhelming, especially if you are starting from scratch.

In order to build assets, you first need to be able to manage your money in your day to day life.

Then you need to figure out what assets to buy.

It can all be very confusing, but this is where I want to step in with this website and my blog.

I want to share my knowledge when it comes to money, help you manage your own finances and create wealth that you can then pass down to the next generation if you so choose.

The greatest gift you can give to the next generation

If you ask me what one of the greatest things you can do for your children (after providing for the basic needs of love, safety, shelter and so on of course) is, it’s teaching them to be financially literate.

Money is part of most things in life, whether we want it or not. It is a big reason for stress and one of the leading reasons for strain in relationships.

So what if you could help your children avoid all that stress?

You teach them how to manage money from the get go. Before those big money mistakes happen. Before they get into debt.

And the first thing you need to do? Teach yourself.

That’s the beauty of this day and age. Having access to platforms where people who want to share their knowledge on any particular topic can easily do so.

My parents aren’t the greatest with money and I certainly didn’t learn anything about money from them.

But I have been learning through all the available resources, books, social media, internet in general, and of course my university studies to have even more specialised knowledge so I can better help others as well.

You definitely don’t need to go to university to learn how to manage your money and build wealth.

Figuring out what your money mindset is, is a great place to start!

Giving your children (or nieces or nephews, or other children in your life) the gift of financial literacy, understanding money management, investing, and everything related to money can be life changing.

And that you can do without having to try to build massive wealth for yourself to pass on.

Also, then you don’t have to worry that your generous gifts would disappear into bad money management, like happened to the wealth of the Vanderbilt’s, who used to be the richest family in the USA.

Maybe you won’t be the richest person in your country, maybe you will. But if you teach your children how to properly handle their money affairs, they will be grateful to you for their whole life.

Does your family have generational wealth? Or do you maybe aim to pass some onto the next generation? I’d love to hear in the comments!