Three Ways to Create Generational Wealth

Creating generational wealth consists of having a long term mindset and setting up systems and investments that have the options to last well past your children’s lives.  This is the mentality that I have when I set up any business or purchase an asset for my family.

Does it have the capability of being passed to my children 10 years from now?  20 years from now?  How about 30 years? Can they inherit it, enhance it, manage it or have someone else manage it?

A business, in my opinion, should be the first on the list of creating wealth for yourself.  A business allows you to control the income by the input you put into it.  Want more income, become more active within the business, hire people to run your business for you, buy more inventory to sell, market your business more… there are multiple ways to increase the profit from your business.  You just have to pick a strategy, enforce it, maintain or adapt so that it works for you.  With a strategy for generating income and a product or service that is a need for consumers, the right combination will allow you to pass to your future generations when prepared to inherit it.

The stock market is another option to generate wealth.  While clearly it may not be for everyone, it can be for those that are willing to make sound investments, and can lead to compounding wealth for years to come.  It can be passive or active depending on your level of comfort and your knowledge of the process of investing in the market.  Whether it is investing in individual stocks, mutual funds, bonds, or ETFs (exchange-traded fund) just to name a few, these investments have the ability to possibly generate income as well as appreciate in value.  With proper due diligence research, your investments can have the ability to earn income and capital gains during your life time as well as into your children’s as well.

Real estate is another area that can lead to generational wealth with its multiple ways of generating income.  You can buy and hold, wholesale, rehab, or even use it as a short term rental.  After purchasing a home for yourself and paying down the principal, it would also be gaining appreciation and creating a positive to your net worth.  You could then use the money that your house gained by selling or refinancing to make more purchases within real estate.  This is called using the property’s leverage for yourself to buy more real estate.  For the generational wealth aspect of real estate, in my opinion, would lead into the buy and hold strategy.  When the time is right, you could trade up for a higher value asset or allow your children to inherit the property to do as they see fit.

With that being said, I do hope you appreciate our site, learn a great deal, and focus on building yourself for the person that you are to become.  Thank you in advance and for your time!