In today’s fast-paced world, the term “generational wealth” often gets thrown around, but what is generational wealth exactly, what does it really mean, and why is it so important?
Generational wealth is like a sturdy tree that grows over time, providing shade and sustenance not just for one generation but for many to come.
Let’s take a closer look and uncover the secrets behind this financial legacy and learn how you can start building it for your family’s future.
Table of Contents
What Is Generational Wealth?
1. Defining Generational Wealth
Generational wealth is more than just the money you leave behind when you’re gone. It encompasses all the assets, investments, knowledge, and opportunities you pass down to your children and grandchildren.
It’s about creating a solid foundation that can support your family for generations to come.
Financial Assets: Generational wealth often starts with financial assets, including investments in stocks and bonds, cryptocurrencies, real estate holdings, and even ownership in family businesses. These assets serve as the financial backbone for future generations, helping to provide a source of income and stability.
Estate Planning: Proper estate planning is vital for making sure that the transfer of assets to your heirs is smooth. This includes creating wills trusts and establishing mechanisms to minimize inheritance taxes, ensuring that more wealth is preserved for your family’s benefit.
Insurance: Generational wealth can also involve securing insurance policies to protect your assets and provide for your family in case of unforeseen events. Life insurance, for instance, can leave a financial cushion for your loved ones.
2. Investing In Yourself
When looking for the best ways to build generational wealth you need to recognise that it is highly likely that you will need to increase your knowledge, understanding and skills in order to learn what is required before you take any action.
Most of us are familiar and often happy with the concept of investing in traditional based education such as schools, colleges and universities However, some of the most powerful and relevant learning opportunities in life come later.
Personally, I excelled at university, gaining a 1st class degree, putting me academically into the top 2% of achievers. Sounds great and it felt good at the time but I didn’t actually go on to use my degree in my working life because I was no longer passionate enough about it to pursue a career with it.
Instead, after dipping my toe into the corporate management world for many years, I finally decided to pursue an entrepreneurial career instead because that was far more satisfying and relevant to my life ambitions and passions.
For example, there is an abundance of learning opportunities that exist via online courses, programs, masterminds or membership sites. Provided you do you due diligence extremely carefully, this can be a fantastic way to quickly and easily learn new skills from someone highly reputable with national or worldwide credibility and authority.
This is exactly what I did as I set about on my journey towards building generational wealth. I made the decision and made it a priority to continually invest in myself at a higher level so that I could learn the skills and become the type of person who could build generational wealth fast.
3. The Power of Compound Interest
One of the key ingredients in building generational wealth is the magic of compound interest. Think of compound interest like a snowball rolling downhill, gaining momentum as it goes.
When you invest money today, it earns interest. Over time, that interest earns more interest, and so on. The longer your money is invested, the more it can grow.
Start Early: The earlier you can start investing, the greater the power of compound interest. Even small, regular contributions to investments can grow significantly over time. This long-term perspective can set the stage for substantial generational wealth.
Diversification: Diversifying your investments across various asset classes reduces risk while maximising the growth potential. A well-balanced portfolio can help weather market fluctuations and generate consistent returns.
Reinvestment: As your investments generate returns, consider reinvesting those earnings to take full advantage of compound interest. This can accelerate wealth accumulation over time.
4. Investing in Education
While money is an important component of generational wealth, knowledge is equally valuable. Providing your children and grandchildren with access to quality education can empower them to make smart financial decisions, create their own opportunities, and continue to grow the family’s wealth.
College Funds: Establishing college funds or educational trusts for your descendants can alleviate the burden of student loans and provide the opportunity for advanced degrees or vocational training.
Financial Literacy: Teaching your family about budgeting, saving, investing, and financial planning equips them with the skills to manage the wealth they inherit wisely. Consider workshops, seminars, or one-on-one discussions to impart financial knowledge.
Entrepreneurial Spirit: Encourage an entrepreneurial mindset within your family. Teach them the value of innovation and risk-taking, which can lead to the creation of family businesses or investments in startups.
5. Assets That Appreciate
Generational wealth isn’t just about having money in the bank. It’s also about acquiring assets that appreciate over time, such as real estate or stocks. These assets tend to increase in value and can generate passive income, which can support your family for generations.
Real Estate: Owning property that appreciates in value over the years can provide a steady source of income through rental properties or potential profits through resale. Family-owned real estate can also serve as a gathering place for generations.
Stocks and Investments: Carefully selecting investments in stocks, bonds or other financial assets such as cryptocurrencies can grow significantly over time, creating a substantial asset base for your family. Frequently review and where necessary adjust your investment strategy to align with your family’s goals.
Business Ownership: Owning and managing a successful family business can be a powerful source of generational wealth, providing both financial stability and job opportunities for your descendants. Foster a culture of entrepreneurship and innovation within your family to sustain and expand the business.
6. Passing Down Values
Beyond money and assets, generational wealth includes passing down values and a sense of responsibility. Instilling these values ensures that your legacy is not just about riches but also about positively impacting society.
Philanthropy: Encourage your family to give back to the community by supporting charitable causes that align with your family’s values and interests. Establish a family foundation or charitable trust to make a lasting impact.
Ethical Decision-Making: Teach your descendants about making responsible and ethical choices in their personal lives and business dealings. Emphasise the importance of honesty, integrity, and ethical conduct.
Stewardship: Instill a sense of stewardship in your family members. This means responsibly managing and preserving the wealth you’ve built so it continues to benefit future generations rather than being squandered.
7. What Is Generational Wealth? – My Personal Experience
One of the fastest ways to learn exactly how to build generational wealth is to simply learn from someone else who has done it.
Finding someone who is trustworthy, reputable and credible to teach these concepts can often be a challenge. Sometimes you might also find that successful people who have created generational wealth don’t necessarily want to share openly with others how they achieved it.
Fortunately, after a lot of online researching and due diligence, making sure Invest Diva is legit, I met Kiana Danial, CEO of Invest Diva in 2020. At that time I was looking to take control of my financial future and learn how to make some money that I had sat in my savings account work much harder for me through investing.
I watched her free Invest Diva Masterclass and then took her best selling Invest Diva Make Your Money Work For You PowerCourse.
I had such a phenomenal and life transformational experience in the Invest Diva PowerCourse that I went on to quickly build a $100K portfolio within 5.5 months and a portfolio over $200K+ within 12 months. Almost 3 years later after joining the Invest Diva PowerCourse, our families total investment portfolios have reached just over $500K+.
Shortly after starting the Invest Diva PowerCourse I attended one of Kiana’s Build More Wealth Live virtual conferences that she usually hosts a few times per year.
This was where I learned all about how to build generational wealth using what Kiana describes as her Wealth Diva Ecosystem. This is the exact framework and system that she used to build generational wealth for her family.
This Wealth Diva Ecosystem concept is taught at the Build More Wealth Live virtual conference and it comprises 4 important pillars. Influence, Income, Investing and Insurance.
When I look back, part of the reason why I was able to accelerate and continue to accelerate the growth of our portfolios quickly was because of what I learned and applied after attending Kiana Danial’s Build More Wealth Live virtual conference.
If you want to know exactly what it takes to create generational wealth fast for you and your family, then the Build More Wealth Live is perfect for you! Kiana doesn’t hold back on everything you need to know and she shares her exact framework for how you could achieve generational wealth much faster based on her proven experience.
VIP tickets are definitely the way to go but they always sell out first, so act quickly to avoid missing out. You attend on Zoom for 1-2 hours per day and tickets are currently available here for the next Build More Wealth Live virtual conference which is coming up on September 11th to September 15th 2023. Grab your ticket here and secure your seat.
I always attend these events as a co-host, so if you are grabbing your VIP ticket, I’ll see you there with Kiana Danial very soon! Get ready for a life transformational experience that is always fun and high energy!
What is Generational Wealth? – Check Out Kiana’s Energy When Introducing Me At A Recent Virtual Live Event!
What Is Generational Wealth? – Conclusion
Generational wealth is not a sprint; it’s a marathon, and with time, patience, and smart choices, your family can thrive for generations to come.
It’s about planting seeds today that will grow into a forest of opportunities for your descendants.
By understanding the power of compound interest, investing in education, acquiring appreciating assets, and passing down values, you can begin to build a legacy that will benefit your family for generations to come.
Remember, it’s not just about the money you leave behind; it’s about the future you create for your loved ones.
Now that you know what is generational wealth, start building your generational wealth today, and watch it flourish into a brighter tomorrow. Generational wealth is the gift that keeps on giving, ensuring a prosperous and secure future for your family.
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Success Coach. Entrepreneur. Investor. Proactively Coaching, Upskilling & Empowering Entrepreneurs To Create Abundance In Their Life & Business.