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We’ve all heard the stories of rich families and how all the former and upcoming generations can thrive off of the hard work of their predecessors.
This is commonly known as generational wealth. The great thing is that it isn’t a myth. It’s a choice. Anyone can decide to think about their financial future and build a stable starting point to last lifetimes.
That being said, here are four ways you can build your own generational wealth for your family.
Invest in the Stock Markets
When it comes to the stock market, the earlier you start investing in companies, the better it will be for your future finances. Even if you invest $50 in one company, in a few years time, that same investment could bring you millions of dollars, which will come in handy for your future children and grandchildren.
There are several apps you can download to start investing in the stock market right away, like the popular company Robinhood (Fun fact: the app is free!).
Purchase Land
Whether you want to purchase a piece of empty land or a plot with a house in it, this could generate generational wealth for your family in several ways. For starters, if the property has a residential unit, you can rent it out and create passive income.
And, if there isn’t a home on the land, the land itself will appreciate in value over the years and could be sold for a pretty good price in the long run.
The best tip for real estate is to try to find areas that haven’t been developed yet. Imagine how much land was being sold in Atlanta before the Georgia city was the bustling hub it is today. Imagine how much they’re being sold for now!
How to Build Generational Wealth: Start a Business
Some Fortune 500 companies started as family-owned and operated businesses that have been passed down by generations. In fact, Grand Valley State University reported that there are over five million family businesses in the United States alone.
The best part is that you can do this same process with your own ventures. Consider a service or skill you can turn into a profit and choose family members to take it over.
This could mean a tax company or a restaurant — the possibilities are endless. Just remember to choose the right relatives because your legacy is on the line.
Estate Planning
Forbes recommends that when it comes to generational wealth, having an estate plan is crucial. This means making sure that there are plans in place for your money to go to whom you want it to. Business partners, distant relatives, and practically strangers could try to take your fortune, making estate planning an important step in passing your wealth down properly.
There are several other ways to build your generational wealth, but these ideas alone should steer you in the right direction. Don’t wait; start now and watch your life change!