Amid life’s hustle and bustle, it’s easy to lose sight of why we work so hard to make ends meet. But, deep down, isn’t all our hard work dedicated to ensuring that our children have a better future?
Isn’t it true that we’re going the extra mile so that our children have a better life than we did?
Consider how different things could be if you took the time now to educate them on personal finance and set up vehicles to secure their financial future.
While there are many approaches, here are three ways you can build a financial legacy:
1. Understand the Legacy of wealth
Before you can leave wealth for future generations, it’s important to truly understand what wealth is, as it has nothing to do with income. Income is the money we earn and use to pay the bills and maintain our lifestyles. Wealth, on the other hand, works for us. It is the money and assets that create even more money and assets.
An example can be the money earning interest in your VBank account, real estate investment through HEREL Global or purchase of stocks through Anchoria Investment & Security Ltd.
2. Create multiple streams of income
When it comes to building generational wealth, creating multiple streams of income can make it easier. There are a variety of income streams, but one of the best is known as passive income. Active income is when you trade time for money, such as a job or side gig. Passive income is when you earn from your assets. Yes, you have to put in the work up front, but once the foundation is laid, you continue to earn from your efforts.
3. Start planning and sharing now
It is never too early to begin these discussions to share your financial values. Clear communication is essential for effective planning. Start a conversation with your adult children and be sure to tailor your discussions to their level of responsibility and financial experience.
Building wealth to last for generations is no easy feat, but it is an admiral undertaking. After you have your financial situation under control, safeguarding your family’s future is the next step. The earlier the process begins in speaking with family and working with a team of professionals, the more comfortable all parties involved will be in ensuring the legacy lives on.