What if you could leave behind enough money that your children and their children would be well taken care of? No, this is not an exclusive situation reserved for the rich.
You can learn how to build generational wealth today and leave behind a legacy of financial stability. Read on for a quick generational wealth guide to help you navigate your financial moves strategically.
What Is Generational Wealth?
Stocks, bonds, real estate, businesses, and any other type of investment transferrable through the family, count as wealth-building machines. If there were ever real-life money trees, these would be the ones to nurture in looking to build wealth you can pass down to your kids.
Generational wealth can transfer from one person to another at the end of one’s life via inheritance.
Alternatively, a person can transfer generational wealth-building assets during life. This can include:
- annual gift-giving
- Roth IRA conversions
You can set your children up for success by being strategic and taking measures now. Let’s look at the different ways to build generational wealth today.
How To Build Generational Wealth
To leave behind a legacy of wealth for your children and their children, you have to generate more income and consider the long-term financial plan.
Four trusted ways to build generational wealth are by investing in stocks, acquiring real estate, and starting your own business.
For those at the very start of their journey in building financial wealth, it begins with holding onto your money–not in a hoarding type of way, but spending consciously.
No matter how much money you make, money comes in and it goes out. If you do not become aware of how much of that money goes out, you won’t be able to acquire assets that help to build generational wealth.
2. Investing in Stocks
This method of building generational wealth is easy to get started in and it has the potential of being a passive source of income.
With the many online brokers that exist, you can begin investing in stocks with as little as it costs for a cup of coffee!
However, you can also risk losing money on investments from a volatile stock market. These are things to consider before jumping in.
3. Acquiring Real Estate
Although some question whether the American Dream actually exists, many still set out to buy houses as a form of building wealth.
Acquiring real estate allows you to collect on passive income, as well as pass down physical assets to your family. This is a money-building machine you can keep in the family.
4. Starting Your Own Business
When you venture into the entrepreneurial world, you realize that all former limits on how much money you can make in a year completely dissipate. The only limit is how much you think you can make.
Besides, tax laws exist to benefit business owners, not quite employees. Take advantage of the business tax structure by exploring WealthAbility Now.
Invest In Your Future
Think beyond your present reality.
You can live a life of abundance and wealth, and so can your children. It all starts with the steps you take now. Invest in your future by learning how to build generational wealth and paving the path towards achieving it. Many before you have achieved this feat, and so can you.
For more generational wealth tips and advice, check out more from our blog!