Cultivate Money & Mind – The Way to Generational Wealth

From the moment that we think about starting a family, creating a financially sound future for our children is the focus of the equation. We want them to have and aspire for the best and always enjoy the vast experiences that life can offer. But that is a limited belief system that we need to scrap from our thought process. Empires are not built by having a limited mindset of only thinking about our kid but to look at creating wealth for generations to come. So how is that done and Where do I start?

First start by overcoming your fears of failure. When trying to create a financial strategy, a million questions will come to mind to stop you from growing. Leave the fear of failure at the door. Have the audacity to plan and take action without the fear of the outcome. When faced with questions such as 

What will their future be like?

Is inflation going to continue the upward trend? 

Will the current state of society be the same or get better? 

Are our kids going to enjoy the same life experiences as us? 

How are they going to move forward in a world that is constantly evolving?

Your answer should be the same, None of these matter. You have one goal and one goal alone. To give it all you got.

Most families live paycheck to paycheck, unable to think ahead because their minds are focused only on the problem at hand. Decluttering your mind is extremely important to be able to look at the bigger picture. We see so many people feeling forced to have a job just because they need a stable source of income, but there are many ways by which your household income can skyrocket. The trick is to work smarter, not harder. Gone are the days when we could be dependent on just one source of income. Having multiple sources of income is what helps create financial stability in case one of the pillars fails.

Here is a video in which I talk in detail about this, 

BEST Way To Get Financial Freedom | What The Rich People Won’t Tell You | Adnan Feroz

But what is generational wealth? According to CNBC, it “refers to any kind of asset that families pass down to their children or grandchildren, whether as cash, investment funds, stocks and bonds, properties, or even entire companies.” But due to inflation, having a large amount of money in your savings account is actually the worst way to create generational wealth. Wealth should always be in the form of appreciating assets to make it generational.

So how do I start?

Create a strategic plan

It is said that if you fail to plan, then plan to fail. Where are the opportunities to save or optimize your spending? Start by penning down your family income, expenses, savings, then move onto projections. Then calculate how much savings you can accumulate over 1, 3, 5, 10 years. 

Now use these savings towards multiple diversified investment vehicles to offset risks and use a mix of both short-term and long-term investments. Here is how you can start:

Invest in Real Estate

Why Real Estate? Real estate is one of the longest withstanding investments in the world. In the long term, you will never lose in real estate. Now the secret is working with a realtor who understands using real estate to create a generational wealth plan This is the easiest and safest first step for the financial situation of both you and generations to come.

The reason that working with a realtor is so invaluable is that there are so many factors to consider before making such a large investment. Adnan Feroz notes, “Finding the perfect investment property is nothing like finding your dream home’ There are 2 completely different mindsets at play here, Consumer vs Investor Mindset.” Finding a property to invest in is all about the experience. If you or your realtor are not experienced in finding the right property, no matter how much money you are saving, you will end up losing big time. Inexperience is in fact expensive.

Create Your Own Business

This may seem like the easiest option, but creating a business takes skill, time, and most of all, a lot of persistent effort. Whether you decide to create your own or partner with someone who already has a business idea, make sure it’s something that you are passionate about and are willing to put the work into. That is the key. 

Running a business is an extremely time-consuming task, and you should be able to have the patience and love for it required to do the work on a daily basis. However, once you have set up your own successful business, it will become something that your children can inherit in the future leading to generational wealth. Also, by starting a business, you learn a lot, which translates into personal growth. With growth comes a problem-solving mindset, which is also something your kids can inherit to create their own generational wealth.

Invest in yourself

A key factor in achieving success in any field is investing in yourself. This means taking the time to learn about your chosen industry, staying up-to-date on the latest trends, and continuously expanding your skill set. It also involves adopting the right mindset; viewing yourself as a lifelong learner and viewing setbacks as opportunities to learn and grow. When you invest in yourself, you are sending a message to kids that you are serious about your life and that you are committed to achieving success. This can open doors for you & your family. Without investing in yourself, you will not truly be able to achieve generational wealth. This is the #1 reason why so many businesses cease to exist before getting passed to the 2nd generation.

Invest in The Stock Market

We know that the stock market can be challenging to comprehend. Luckily, in today’s day and age, there are countless resources available to you including financial coaches, educational videos, and training courses. Investing wisely in the stock market makes for a great way to earn a passive income, which as we previously mentioned will function as a way to attain the goal of generational wealth.

As Personal Capital says, “Investing in the stock market provides an opportunity to build wealth passively and protect your money from inflation.” This means that you will create a protected income for your future, and you can use it to pass it down to your kids, allowing them to be able to keep investing in their future. Now, making sure you know what you are doing, it is highly advisable to work with a talented financial advisor. So reach out to people in your network before walking into just any bank and hiring the first person to manage all your hard-earned money.

Create a Fund For Your Children’s Education

When you think about your kid’s future, one of the first things to enter your mind is likely what body part you may have to sell to be able to pay for their higher education. Luckily, steps toward achieving generational wealth today will help you afford it without heading to the black market. 

Do the research and consult with insurance companies and your banker to create separate funds for your child’s education. Future generations will thank you for providing them with the ability to make their educational decisions free from fear of going into crippling amounts of debt.

When it comes to establishing generational wealth, an active priority on it now will help future generations reap the benefits. Remember that we are our children’s greatest example, and by making responsible decisions for their future, they will be better positioned to follow our lead later on in their lives.

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