What Is Generational Wealth and How Do You Build It?
When it comes to generational wealth, it’s never too late to start investing.
In the last few years, it’s been found that an increasing number of households are involved with inheritances, with over 60% of U.S. households declaring they’d received or intend to leave inheritances.
But, where does generational wealth come from? How can you build your own wealth to ensure you’re able to leave your family in a favorable position? And, most importantly, what are the best ways to build your wealth over time? In today’s post, we’re going to walk you through the basics and arm you with the information you need to make financial decisions that will benefit your family for generations to come.
What is generational wealth?
When investments, properties, and other assets are passed down, we call it generational wealth. Whether it’s a family home, a business, life insurance, stocks, or the balance of a retirement account, it’s wealth that accrues during a person’s lifetime that their family members inherit after they’ve passed.
How do you build generational wealth?
Depending on your situation, building generational wealth may seem like an impossible task. But, it’s never too late to start planning and taking steps to ensure the comfort of your family for generations to come. When we talk with our clients about strategies to build wealth, we always recommend a few things…
- • Understand your finances. First, speak with a financial advisor to get a full picture of your finances. They can help you define the scope of your wealth-building strategy.
- • Start paying down your debt. If building wealth is your goal, debt is your enemy. By creating a plan to pay down your debt, you can accumulate wealth with fewer obstacles.
- • Build a budget and take it seriously. One of the biggest challenges involved with saving money is sticking to a budget. With a firm budget in place, you can better understand what you can afford and, more importantly, what you can’t afford.
- • Set your goals. As a final step, you’ll want to set some goals. Do you want enough savings to retire? Do you want enough to send your kids to college? Enough to send their kids to college? Defining what you want helps you build a plan to get there.
Need help devising a strategy to build wealth?
At Wiser Financial Group, we work with clients from all walks of life. Whether you’re just starting out on your financial journey or you’re retracing the steps of a journey that didn’t work out, we’re here to help. So, if you’d like to sit down and start developing a strategy to build generational wealth, we encourage you to reach out to us today to learn how we can help.
Are you ready to get started?
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