Is generational wealth even possible nowadays? Honestly, it’s hard to answer that. Unless you own a multinational corporation that seems to be completely healthy, or you’re some executive that has ties to get your children in some of the top positions in the world (which is like 1% of the population), it seems like it’s next to impossible to even build up generational wealth. The rich are getting richer, the poor are getting poorer, and it seems like the middle class is just fading away.
Plus, wages aren’t going up, it’s harder to get a job, it seems as if AI is taking over jobs, and then you have things like shrinkflation and inflation too. Overall, it’s hard to build generational wealth. But there still might be a chance that you can at least help your children and future generations. Maybe not full-on wealth, but there are some things you can do. So, keep reading on to find out.
Start as Early as You Can
Time is a powerful ally when it comes to building generational wealth. The earlier you begin, the more time your investments have to grow through the power of compounding. Starting early allows you to weather market fluctuations and capitalize on long-term trends. It’s honestly never too late to start good financial habits, but it helps the earlier you start, though.
Choose Your Investments Wisely
For many folks, they’re going to look into investing in hopes of incurring wealth. It’s usually something that’s considered with wealth management too. There’s only so much real estate in the world, and people know this. That’s why there’s this huge real estate boom right now because people want to buy whatever they possibly can.
Real estate is usually the most reliable, but of course, others have gotten lucky and have dived into cryptocurrency as a way to create generation wealth (essentially the early investors in Bitcoin specifically); others have invested in stocks, something that’s classic, and there are there are questionable ones like NFTs. Overall, investing can be the one thing that transforms your wealth to where even your children’s children won’t need to worry about money, but you’re going to have to be wise about it and extremely cautious too.
It’s one thing to read financial news websites, but it’s a completely different thing than just understanding spending habits and interests and knowing the impact of it all. While your debt doesn’t have to be generational, the wealth and the choices you make can. Teaching your children financial literacy and teaching them how important it is to spend wisely is a gift that has the potential to just keep on giving.
This one is going to be entirely on you, but this is something that has a lot of potential to help out drastically. Creating a comprehensive estate plan is crucial for the seamless transfer of assets to the next generation. This includes drafting a will, establishing trusts, and designating beneficiaries to ensure that your assets are distributed according to your wishes.If you have a lot, and those you plan on passing it down to know how to properly spend and save, then you can immediately be confident that some generation wealth is happening and they’ll be in good hands.