How To Build Generational Wealth
All human beings eagerly desire wealth and total financial freedom. The major problem in achieving this is our own ignorance on how one should accumulate wealth. The following points might help you in understanding the intricacies of wealth building for yourself and future generations.
This philosophy has been successfully adopted by several billionaires like Rockefeller, Rothschild, and Warren Buffet amassing wealth beyond what normal people could imagine. However, they were not magicians but they followed certain financial and investment principles rigorously to reach such heights.
Change Your Fundamental View of Money
We normally adapt a love/hate relationship with wealth and money. When encountering rich people, common reaction is usually resentment that leads to accusations that they have amassed their wealth either through improper or illegal means or by exploiting others.
Conversely, most of us harbor a secret desire to become wealthy. This contradictory thinking arises mainly due to the basic fact that we have not even understood how money works. Cash has its own individual life like all of us. When you start a career, you are simply selling your personal assets, such as your time and intelligence.
When you realize the potential of these assets that you possess, the real keys to success, you would be able to unlock the door that leads to wealth. Each dollar that you save becomes your employee and you can use that dollar to generate more dollars in your private company of savings and investment.
Small Amounts Have Enormous Power
Many of us naturally assume that investments should be large to generate substantial wealth; a common mistake we commit without understanding the power of money. The real block in our becoming wealthy is this ‘not large enough’ mentality. If you want to build a huge army, you have to select and train each soldier individually or in small groups.
You would never be able to assemble 100,000 men and train them as soldiers in one go. The same principle is equally applicable to saving and investing to become wealthy. Someone mentioned that all great things have small beginnings.
Enjoying Your Money Now Never Makes You Wealthy
Most of those belonging to younger generations and even many from the older generations feel that money is there for instant enjoyment. However, there is an intrinsic fallacy in this approach. If you spend everything that you earn each month on present enjoyments, you would be forced to work continuously until death eventually comes to you.
A survey on the most affluent persons in the U.S. focused on those who earned more than $225,000 annually or owned in excess of $3,000,000 in assets. The survey showed that all these people were funneling between 27% and 30% of their incomes in savings and investments.
They did not start rich but they became wealthy by their personal principles and practices. Change must come from within if you wish to grow.
Study People Who Have Achieved Financial Success
You should study all the traits in wealthy people such as Rockefeller, Rothschild, and Warren Buffet. This includes the traits that you really like and also the ones that you dislike.
When you have such a list, your endeavor should focus on developing the traits that you like and divest yourself of the traits that you hate. This could be termed as molding yourself in their approach to wealth.
Wealth building is a process; like constructing a huge building by placing one stone on another until the building is complete.
Real Life Examples
The Rothschild family in Germany was in possession of the largest fortune by a private family in the 1800s. Even though division among hundreds of descendants has given the impression that their wealth has diminished, they still continue to operate in a wide range of fields; including banks, mining, energy, wine, farming, and charities.
Similarly, the Rockefeller family in the U.S. amassed their wealth by utilizing the opportunities in the industrial and banking sectors in the late nineteenth century and early twentieth century.
Warren Buffett is considered as the undisputed king of investors in the twentieth century and one of the richest persons in the world at present.
You Too Could Achieve This
By reading and studying the biographies and activities of such persons, you will again the confidence so that you could also amass wealth and leave a legacy that would last at least a few future generations in your family, offering them total financial security. What is required is understanding and sincere effort.