Generational wealth is assets that are passed on from one generation to another. Cash, the house your parents left you in their will, a business that you inherited, a vintage car that your dad left you. All these are assets that passed on from your parent's to you or your family. This increases wealth either directly in the value of these assets that are added to your net worth or they can be leveraged to buy another asset like real estate.
Barriers To Generational Wealth
Usually sections of society that can increase their generational wealth are those that already have a lot of it. For example families who own a lot of real estate can buy and sell to increase their portfolio.
But not everyone can buy real estate, equity, businesses without having some level of wealth. Especially when financial institutions tend to be biased when it comes to lending. I don't have to say it but you know what I'm talking about certain races, sections of society are less likely to be granted mortgages, business loans, and favorable interest rates than others. This prevents people to jump that ladder in generational wealth.
How To Increase Generational Wealth
There are many ways to do this some of which are investing in equity, forex, crypto... etc. I'm going to share three ways that one can build their generational wealth that I like personally.
1. Increasing Generational Wealth Through Life Insurance
Life Insurance is the best asset to own. Yes it's an asset. Why do I call it an asset? Because Life Insurance creates an immediate estate. To simply put it its like buying money in the future. You pay a few cents on the dollar for a fixed sum of cash payable to someone upon your death. This is regardless of the contributions made/ years your policy was active. Which other financial instrument gives you this?
2. Increasing Generational Wealth By Investing In Education
I believe in the saying
If you give a man a fish, he will be hungry tomorrow. If you teach a man to fish, he will be richer forever.
You can study finance & entrepreneurship by reading books. Don't like reading? Neither do I! But guess what? Authors like Robert Kiyosaki (who wrote Rich Dad Poor Dad) also have YouTube channels. There's tons of content about finance and crypto online and here on PeakD especially like @leofinance that you should subscribe to.
2. Increasing Generational Wealth With Crypto
I'm not an expert in the field of cryptocurrency but I know the two ways to profit from it broadly are short term methods like trading or long term methods where you hold onto your portfolio. So one way to pass on wealth in the crypto world is by investing long term.
Looking at the top ten coins by highest growth over a ten year period you can imagine if you had invested even a fraction of your savings back then what it would have been worth today! But the top ten projects that peaked won't have the same growth rate in the next ten years necessarily. So you have to find the next big project that will blow up in 5-10 years.
This is what @yangyanje told me when I started getting into crypto.
My belief is that you should invest in something you love and never invest in something you don't understand. Psst. Hive is a great investment. Whether you buy Hive, stake it, trade it or invest your time and creative skills. It's great ecosystem of apps and communities in the sphere of blogging, gaming, NFT's, video, E-commerce...etc.
These are what I find works for me and what I would like to get into. If you have thoughts after reading this on what you think is the best way to increase generational wealth please share your thoughts in the comments below and I would love to have a conversation with you.
Don't be Broke, Be Woke 😎