Check out these easy ways to create generational wealth for your family! It’s not as hard as you may think.
As a working mom, it can be hard to find the balance between caring for my family while also investing the time and energy needed for financial success.
While it’s not the easiest juggling act, I know how important it is to have financial security for myself and my family now, as well as creating financial stability and freedom for the future and even generations down the line. I’m talking about creating generational wealth!
What is generational wealth?
We’ve all heard the phrase, “the rich get richer”, but the rich also get rich and typically stay that way for years and years through their posterity. They do this by turning their assets into an inheritance for their children via stocks and bonds, retirement savings, real estate, personally owned businesses and more.
Generational wealth is important because it buys freedom, better access to education, a louder voice in our communities, the ability to rely on ourselves and create our own opportunities and the potential to build and provide resources for others who need help or who need a voice.
This topic is particularly important to me because of the black wealth and ownership disparity in America. Our community has been held back from these opportunities for hundreds of years and it’s time for us take back our seat at the table.
Success might look a bit different for each of us, but we can all make financial goals for ourselves and future generations that have a huge impact.
Anyone can make small changes now, that grow into big rewards later. Here are 20+ ways to create generational wealth that are attainable for anyone!
How do you get generational wealth?
Creating wealth is not “one-size-fits-all”. Some of these tips may work for your current financial situation, or may be things you can implement down the road.
The first thing each of us should do is get our finances in a healthy place, using easy financial basics.
Get your financial house in order
Speak to a financial advisor. An advisor can help you get a clear picture of your overall financial health and specific things you can do to improve any weak areas.
Get out of Debt ASAP. It’s difficult to pass on wealth if your estate remains in debt. There is good debt and bad debt. Make sure you eliminate and clear up any bad debt on your record, and work towards paying off good debt as soon as possible.
Create a Will. A will provides a clear and specific division of assets which ensures your inheritance is easily dispersed in the ways you have planned.
Have a Life Insurance Plan. One of the easiest ways to pass on wealth to your children, is to set up a life insurance plan. Many employers provide a marginal life insurance plan for their workers, but you can supplement this with your own private life insurance plan.
Many of these plans have low monthly payments, but provide a substantial financial payoff in the event that you pass on.
Use the bank to your benefit
Contribute a portion of every paycheck to a high yield savings account. These accounts return the highest percentage of increase, simply for keeping your money in one spot and not moving it.
Invest money into Custodial Accounts. These are savings and investment accounts parents can create and control for children. Invest in your children early on. The interest earned in these accounts, overtime, will create a nice nest egg to turn over to them when they turn 18.
Put your money in places it will grow
Invest your money in a variety of ways. Diversification is the best way to ensure steady financial growth overtime. If you put all of your eggs in one basket, there is a risk things won’t pan out exactly the way you’ve hoped and you will have no other options to pick up that slack.
The next three sections provide ways to diversify your investments outside of traditional stocks and bonds (which are also great ways to invest and are where most people start).
Create something of your own
Start a business! It’s easier today than ever before to start your own business. If you have a skill or talent or unique idea, you could also have a business.
These are great assets to pass onto children as you can get them involved with the business early on in small ways and hand over more responsibilities and control as time goes on or when you choose to retire.
You can sell your handiwork on etsy, provide a targeted service based on your expertise (lawn care service, beauty services, consulting services, etc.), identify a need in your community and provide it (daycare, tutoring, etc.), or any other unique idea that solves an important problem.
Make your money work for you
Create passive Income. Passive income is money you earn from investments you’ve created, but don’t require your immediate continued attention.
A great way to get started, is to create an informational course or ebook for skills or knowledge you have to offer. You can put work into creating this course one time, but see continual profit as more and more people become interested in and purchase your content.
You can also learn affiliate marketing, invest in dividend stocks, use your car to advertise for other companies, and more.
Real estate is another great passive income maker. If you are able to rent a space in your home such as an in-law suite or basem*nt apartment, you can make a substantial amount of money with minimal work.
You can also look into purchasing a separate property to rent out entirely. First, it’s generally best to work on owning and paying off your own home if you can. You can do this by paying even just a little bit extra towards your monthly mortgage fees. This will cut down on the time it takes to pay off your mortgage and decrease the overall costs due to interest.
Invest any extra income you receive into paying down your mortgage until you are mortgage free.
After your own home is paid off, you can use the amount of money you were spending on your home to invest into another property.
Owning your own home outright and other properties are great ways to pass on wealth to future posterity!
Work smarter
Have multiple sources of income or side Hustles. In addition to passive income, you can also invest your time into side hustles and part-time work alongside your main source of employment.
This could be a money-earning blog, tutoring, virtual assistance, data entry, ride sharing, delivery work, etc.
There are more and more opportunities like these every day. Look out for opportunities that suit your needs and cater to your strengths. It’s also important to find things that are enjoyable to you or that you are passionate about so you don’t get burnt out.
Use bonuses, stimuluses, tax refunds, etc. for investments, getting out of debt, and paying off your mortgage. It’s nice to get these little kick backs now and then, but instead of spending all of these little boosts on consumables, invest these funds back into yourself.
These can go a long way to helping you get ahead financially!
Create and engage with like-minded people and learn to network. If you surround yourself with people who have the same money mindset, you will not only have a better chance of staying motivated, but you can also share ideas and knowledge you’ve learned and find ways to create opportunities for growth together.
Instill financial knowledge and values into your children early
All of your hard work and financial planning will mean nothing if your children don’t know how to appreciate and manage the resources you provide for them.
Start with education. This is the key to opening doors for your children’s future. While a lot of emphasis is put on college degrees, technical schooling is often an underrated educational path that has many avenues for success, too.
Help your children identify and develop their interests, talents and abilities and show them how they can use these skills as a career down the line.
Encourage them to take their education seriously, whatever that may be and teach them from a young age to work hard and understand the value of a dollar.
Here are several more ways to ensure your children have a bright financial future:
Encourage self-reliance.
Teach your children to think ahead and beyond immediate gratification.
Instill personal finance basics, early.
Gift your kids with help for down-payments, education, and opportunities instead of consumables.
Show and expect good work ethic from your children.
Give them opportunities to earn money.
Teach your children to be responsible with and save their money.
Teach them self-worth and confidence.
As parents, we all want the best for our children. These foundational financial principles will lay the groundwork for generational wealth and teach them how to make the most from every opportunity given to them.
I hope you’ll use these tips to make small changes now, that can impact generations to come!
You can find more tips for cultivating a mindset and atmosphere for success with these 50 Goals in Life for success, these 65 financial affirmations, my must-have work at home essentials, and these easy tips to maintain a good credit score!
My hope is this post has given you insight on several things you can do and begin to research to create generational wealth and end generational curses. If you loved this post, please spread the love and share it. Until next time!
