There’s a lot of talk among the entrepreneur community about Generational Wealth (passing money on to your heirs).
Here’s what most don’t understand: Generational wealth is about way more than just money.
Lottery winners go broke. Athletes go broke. Why?
It’s not about earning it’s about LEARNING!
It’s not about what you make, it’s about what you keep (aka STRATEGY).
Most fortunes are squandered by the third generation.
I wrote a Twitter post yesterday about consumer debt, and it got me thinking about the horrific state of education we have about personal finance.
This is a subject I’ve studied intensely since I found myself $20,000 in credit debt after college – not counting loans.
How’d that turn out for me?
As I write this, I have ZERO consumer debt
I have an 846 credit score
My only debt exists in rental mortgages which are paid for by my happy tenants.
I’ve made a ton of financial mistakes, don’t get me wrong. But I’ve learned a lot along the way and thinking maybe I should share it more…
So let’s talk about what I learned:
The key is learning and passing on knowledge and skills to maintain and grow that wealth for future generations.
Here’s a concise guide to building a strong financial foundation for yourself and your family:
Boost financial literacy: Learn how to read financial statements, understand basic economics, and master interest rate applications. Start with resources like Investopedia or NerdWallet.
Save early and consistently: Set aside money from each paycheck or create a budget that prioritizes savings. Harness the power of compound interest!
Master one income stream, then diversify: Focus on one income stream until it becomes stable, then add more for financial security.
Invest in appreciating assets: For me, it’s real estate, others are more comfortable in stock market plays. Either way, assets often increase in value over time and generate long-term wealth.
Reduce consumer debt: Minimize debt to grow wealth faster. Understand the difference between good debt (eg. investment mortgage) and bad debt (eg. credit card debt).
Invest in yourself: Level up your knowledge, skills, and experience constantly! Take courses, attend workshops, or obtain certifications.
Plan wealth preservation: Establish trusts, set up college funds, and think about how to pass down your resources and knowledge.
Learn from the wealthy: Study successful families and entrepreneurs. Books like “Rich Dad, Poor Dad” and “The Intelligent Investor” can offer great insights.
Embrace a financially literate lifestyle: Keep learning, take classes, and engage in financial discussions with your family.
MAIN IDEA 🧠: You MUST teach the next generation! Share your knowledge and values with younger generations to ensure lasting generational wealth.
This is by no means the extent of it.
These are simple steps but each can be a book unto themselves.
Reach out if you have questions or need help.
To your financial success! 🎉
– Brian “don’t buy restaurants” Orr
P.S. Speaking of Twitter – I seem to be on a roll since I relaunched in Feb.
This platform is exploding! I highly suggest you leverage the opportunity.
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