Examples of Generational Wealth
For many people the idea of having examples of generational wealth might sound foreign and far-fetched. After all, in theory anyone could accumulate great wealth over the years and then just sit on it, right? This is actually a very common concept that has been around for ages. In many ways, it’s a bit of a minority view point within our overall society.
So what does this have to do with anything? Quite a lot actually. For generations upon generations, this is how things have usually worked. Your children and grandchildren will carry on the traditions and legacy of your parents and forefathers. Often, they will be able to trace these wealth and legacy from one generation to another. The question then becomes what if something happens that disrupts this flow of family wealth?
Suppose a couple of your descendants get married and have a child. Now suppose that this child marries someone else and then your other heirs begin to have children as well. They will all continue the cycle as long as the firstborn continues to carry on the legacy after all their offspring have come and gone. Now this can go on until each of your heirs has children of their own and all of your wealth gets passed down to everyone at one time or another.
Examples of Generational Wealth – So what does this have to do with anything?
So what happens if something happens that interrupts this process? Well, obviously there has to be something that will prevent a generation from passing its wealth onto the next generation. Usually this is a calamity that occurs during a time of war or some other major event. Once it’s over, however, everything should return to normal. This isn’t always the case though. As we’ve seen recently with the financial crisis, unexpected disasters can take a hold of things and cause enormous damage to an entire economy.
So what can you do to avoid this type of thing from happening to your own family? The best way is to start planning early. Remember that it doesn’t matter how much money you make or how big your home is; if you don’t start building your wealth now, you’ll never get to enjoy it. Start planning for your future today. Don’t wait until your kids are old enough or when your children have all of their own belongings to start planning. Take the time now to think about where you want to be and how you’ll get there.
When you get to that point, make sure that you’ve set aside enough for your entire family so that your entire estate will be protected in the event of that sort of a problem. Next, start building your financial foundation so that your generations won’t need to worry about it. Start creating your legacy today. That means learning how to invest your money, creating an educational plan, finding a whole life insurance plan and finding good investment opportunities.