They are thousands of organizations and individuals across the country working hard to help people on a tight budget build generational wealth. But, I just wanted to add my contribution to this hot topic. Indeed, the topic is at the heart of social inequality. That’s why it is fueling social injustice and activism.
How To Build Generational Wealth on $500/Weekly check
Undeniably, most people rely on their ability to leverage generational wealth to jump-start their lives. That is because generational wealth is wealth that is passed down from one generation to another. It is our legacy for the future. Well, the good news is you don’t have to be a high earner to achieve that. The bad news is it is extremely challenging and it demands discipline and focus. Nevertheless, a couple of years ago, that option was only reserved for a certain class of people. But today, with help, dedication, the right mindset, and hard work. This is how you can achieve that.
The steps
- Don’t compare yourself with others
Indeed, one of the most challenging attitudes is to constantly compare yourself with another person. By doing so, you are trying to match up rather than being assertive of your capabilities. Think of where you are coming from what your parent left as a legacy, where you are now, and how you can build on that.
2. Incremental
If your parent didn’t have a car and now you are driving a car and can pass that on to your kids. That is a huge achievement. Better, if your parent didn’t have a property and now you are a proud owner of a condo, you should be proud. Incremental thinking is essential in making sure you secure a legacy for future generations. Focus on things on your reach first, then you can move on the ladder progressively.
3. Open a trust fund for your kid
I used to think trust funds are only for the wealthiest and the super-rich. Actually, everyone can open one. You can set up one for as little as $20 per month starting immediately after giving birth to your baby. Imagine how much that can be after 18 years on a compound interest rate.
4. Set the right mindset
You can’t achieve excellence if you are not focused. Understanding where your priorities are will make an enormous difference. But most importantly, constant communication with your kids will help them understand why you are doing this. For example, rather than buying a $100 sneaker or $50, tee-shirt tell them you are putting that money towards his or her trust fund for college. Leave within your means, and be as frugal as you can. The goal is not to show off but to build generational wealth. So please, stay focused.
5. Diversify your income
They are numerous businesses that you can start on budget. Yet, you can basically monetize your talent to get access to an untapped source of income. You can join a pool investment group through lending circles or investment clubs. Also, leveraging the power of the community will enable fast and reliable achievements. Work hard and stay focused.
6. Don’t do it alone
If you want to go fast go alone if you want to go far go together.
That is extremely true. It is heartbreaking when you see people living paycheck to paycheck who think the world owes them everything. Then, they are surprised when everything falls apart. You need a person by your side, it might not necessarily be your dream man or woman. But if he does the job of elevating you, supporting you, pushing you why not. Be humble and accept feedback, criticism to be better with others.
Read more:
- your riches life planning: An Easy Budget to Build Wealth
- Dave Ramsey: How to Build Wealth at Any Age
- Medium: 14 Lessons on building Generational Wealth for Millennials