If you have children or want children, you’ve probably thought about generational wealth at one time or another. Unfortunately, around 75% of Americans are currently living paycheck to paycheck, and aspirations of generational wealth are pushed to the wayside in favor of simply attempting to make it to the end of the month without accruing overdraft fees or experiencing a financial emergency. As lockdowns ease and the world begins to reopen, employment will be more easily attained once again, offering more opportunities for stability. This means people can once again refocus on their financial goals. Read on for our practical tips to help you begin your journey to generational wealth.
Increase Your Income Streams
Whether you take up a side hustle or begin to invest in the stock market, you need to expand your income streams. Most millionaires have an average of 7 income streams. Once you establish an additional income stream, aside from your 9-5, it’s time to establish some passive income streams. This may mean writing an eBook, creating a webinar or launching a blog that is well monetized.
Continue building your skillsets, both financially and generally. The more varied your skillsets, the more opportunities you will have for increasing your income. Never stop learning, growing, and applying what you learn to your financial journey.
Live Below Your Means
Keeping money is just as important as making it. If you are hemorrhaging money each month, you won’t have the opportunity to invest that money. Living below your means means being intentional with your purchases, living frugally, and not trying to keep up with The Jones’. If generational wealth is your goal, you don’t need a McMansion or a Benz when your home in the suburbs and a used sedan can get the job done. It also means you ensure that you have emergency funds set aside to keep you afloat without having to access your investments.
Flesh Out Your Portfolio
Once you have your bases covered with a healthy emergency fund, passive and active income streams, and are living below your means, it’s time to focus on your investments and expand your portfolio. If you are not yet comfortable managing your own portfolio, visit a financial advisor or fund manager to get some guidance. If you’ve educated yourself and feel comfortable with managing your own investments, begin the process of expanding and diversifying your investments.
The Bottom Line
Generational wealth doesn’t have to be a pipe dream. With some strategy and hard work, you can ensure the financial security of your family for generations to come. By educating your children and instilling those same ethics, you can ensure that your wealth endures.
Join us next week for more education and insight to help you find your financial freedom!