What is Generational Wealth and How Do You Build It?
By definition, generational wealth, also referred to as family wealth or legacy wealth, represents wealth passed down from one generation to the next.
How to Build Generational Wealth
To build generational wealth you can pass on, you need to acquire assets or save money you won’t need to spend in retirement. You then pass down the money and assets to children or other younger relatives.
→ Invest in Stocks
Stocks are arguably one of the best ways to build long-term wealth. Some people recommend starting by investing in index funds that carry low costs. An index fund is a type of mutual fund or exchange-traded fund (ETF) meant to match the components of a market index.
→ Invest in Real Estate
If someone receives an apartment building where the costs for the mortgage, property fees and taxes amount to less than the money coming in from rent, the owner has immediate passive income and cash flow.
→ Save More Strategically
Generational wealth comes not just from making money, but from saving it as well. As you receive dividends from stocks or real estate and are making more by selling assets, make sure to put some of it aside in a place where it will continue to work for you.
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