Invest now so your children will have a better future
I believe we have a great opportunity not only to become wealthy but to build generational wealth. The concept of generational wealth is not new and it basically means creating and building up wealth to pass onto the next generation. Unfortunately, there are many people who are accumulating wealth but have no intention on passing what they have earned to their children or grandchildren. Ironically, some individuals have accumulated so much debt and they die leaving their children and grandchildren have to take care of this debt.
I think it is very selfish for individuals not to build generational wealth for their generations to come. Some people say they do not want to spoil their generation. However, the truth is the cost of getting things appears to be increasing all of the time and so when your generation becomes adults, they will have a difficult time acquiring assets due to the excessive cost. Therefore, it is important for us to invest now so that our generation can have a bright future.
How to Build Generation Wealth?
There are many different ways you can build generational wealth. One of those ways is to invest in real estate. May a sacrifice and put aside money and purchase land and investment properties such as apartment buildings. Do not spend your money on building large homes unless you are building this for investment purposes. I know many may argue that they don’t have access to purchase land but some of these same individuals have access to money for vacation and other purposes. Some of you may have generational land and it is yet to be mutated and distributed. I encourage you to have a family meeting and ensure that the land is distributed to you and your generation. You see when some of these individuals die, it is challenge getting family members to decide on the distribution of the land unless there is a will. Anyway, one of the keys is to acquire land. If you have land, don’t sell it.
Another way to build generational wealth is to create a successful business. Being an employee will take you a long time to build generational wealth unless you are the CEO and earning a significant salary and perks. In the Turks and Caicos Islands, we are a tourist destination attracting over a million tourists by cruise on the island of Grand Turk and then at least 400,000 tourists by air primarily on the island of PRovidenciales. Therefore, develop a business that caters towards tourism and if you can get at least $1 from each tourist, you are bound to create wealth and have a successful business
Finally, another way to build generational wealth is to teach financial literacy to our generation. Encourage savings and promote the purchases of investments rather than the purchase of vehicles etc.
Drawbacks to creating generational wealth
One of the drawbacks in creating generational wealth is that we are afraid to take risks. You see the greater the risks, the greater the rewards. Therefore, step out of your comfort zone and take the risks in acquiring wealth. This may mean getting a loan and it is ok to get a loan as long as you believe you will get more in the end.
Another drawback is the fact that some of the business ventures will require a lot of investment in cash such as supermarket, a bowling alley, an amusement park and a hotel. This means we may have to have partners to reduce the burden on one individual. It is very difficult to maintain successful partnership due to lack of trust or one partner being more involve than the others. To solve this issue, I believe the partners should step aside and hire a CEO or a manager to run the business and the partners have monthly board meetings to keep abreast of the affairs of the business.
I believe another drawback is that there is lack of support among the locals. We do not support each other and sometimes we go out of our way to ensure that others do not succeed. We badmouth them and we create a lot of negativity about their business. We need to be happy for the success of others and support and promote their business.
Sometimes we focus a lot on jobs with status but sometimes all you get is status. There are many jobs and businesses that may not consider “high end’ but those are the businesses that may allow you to generate the wealth.
Building generational wealth is something that all families need to have as one of their goals. This may require joining up with friends and families. Too many people are setting up their own individual businesses when in fact they could have combine with others and make a bigger and better business.
The future of our generation depends on the decisions we make today. Don’t make life difficult for your children and their children so build generational wealth now. Believe that you can do it and stop thinking about the rich getting richer and the poor getting poorer concept. Be the change in your family and take the lead.