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Money Tip
Knowledge you can use
How to start building generational wealth
Have you had this moment of realization yet? You know, figuring out that you are going to have to do the work of building generational wealth?
You are definitely not alone. While some people are focused on their personal finance right now, there are still a lot of young people out there thinking about a future where their children are financially secure. (Then there’s the 1% who are lucky enough to have been born into generational wealth.)
So how can you start building this wealth?
Let's be honest, creating generational wealth is not as easy as it sounds (especially with inflation and devaluation of the naira today) but once you start and get a hang of it, it’s probably the best thing you can do for your (future) children and generations that follow.
1. Invest: You can start setting aside an amount you want to invest for your family that also goes into your children’s future. Start with the stock market or real estate, but make sure you have knowledge of investing before you jump into it. They both make great long-term investments.
2. Have multiple streams of income: Get yourself other streams of income other than your job. You can get yourself good-paying side gigs or earn passive income by selling an ebook, a course, or starting a youtube with relevant content.
3. Start a family business: The key to building a successful family business is to start now and have a solid business plan. Think of a business that would be relevant even in your children’s time and work with what you have to build it. In the end, let it be something you love doing.
Get them interested at a young age it but don’t force them to take over. There’s still an option of selling off the business.
4. Develop your interest in personal finance so you can teach your children too: If you want to keep wealth in your family, it’s important that you have the knowledge so you can pass it down.
You can have generational wealth in your family, but it’s pointless if they don’t know how to continue building it.
5. Protect your family with life insurance: Whether you plan to have your own family or you already do, it’s never too early to have life insurance. With life insurance, you can keep your children financially secure if something tragic happens to you.
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