Believe it or not, building generational wealth isn’t about becoming fabulously rich or creating an empire. Sure, a lot of people with “old money” seem to be flashy rich, like the ones on the show Succession or The Gilded Age.
There are plenty of movies, too, like The Great Gatsby and Dead Poets Society, and the list could go on and on.
While sure, generational wealth sounds like it’s for those who founded a successful tech company or their grandparents who invented something used every day or found oil on their property, it’s not the case.
It’s more about creating a financial plan for your family that you all can stick to.
Sure, some families have generational wealth through these means, but generally speaking, generational wealth is more about creating long-term stability for your family.
It’s about doing what you can to help make future generations (that includes your kids) feel more financially secure. But what can you do to lay the groundwork for a more stable financial future? Well, here are a few ways!
1. Saving and Investing Wisely
So, the easiest way to start building wealth is by saving and making smart investments. It doesn’t have to be complicated or risky. See 80 ways to save money and 20 mindsets to live on an extreme budget
It’s just about regularly putting aside money in things like stocks, bonds, or index funds that can grow over time. Even small contributions add up, and thanks to the magic of compounding, your investments can steadily increase in value.
Now, the trick is to stay consistent and let time do its thing. What’s more, teaching your children or grandchildren about saving and investing sets them up for future success, passing on financial knowledge that will help them in the long run.
2. Investing in Property
Want something else that’s simple? Well, property is one of the most reliable ways to build wealth.
It can be something like the home you live in or even a rental property, but owning real estate creates an asset that typically increases in value over time.
However, you also need to keep in mind that the property market can fluctuate, but over the long haul, it’s proven to be a smart investment for those looking to create generational wealth.
There’s only so much land in the world, and over time, it has appreciated in value (rarely depreciating).
Plus, depending on where you live, this is tangible, and it can be passed down to family members.
It’s not just a source of income if rented out, but a place future generations can live in or sell if needed. It’s an investment that keeps on giving.
3 Start a Family Business
It’s not as glamorous, but starting a family business is another way to ensure long-term financial stability. Even a small business, when run well, can provide a steady income and be passed down to future generations.
Besides, if you really think about it, a family business offers more than just money. It teaches valuable skills like entrepreneurship, work ethic, and leadership.
If managed properly, a family business can grow into something that supports multiple generations. This will give your children and grandchildren both financial stability and business experience.
Now, the hard part is getting family members on board with chipping it. However, they’ll generally discover that it’s worth it.
4. Focus on Education
This is more about the “family culture,” but investing in education is one of the best ways to build lasting wealth.
Whether it’s formal education or vocational training, knowledge opens doors to better job opportunities and higher incomes.
So, by prioritising education, you give your family a powerful tool to achieve financial stability.
