Attaining wealth has never been more pertinent than today for the Black community. However, what’s often left out of the dialogue is not only how to stack your coins for yourself but also your kin.
We’re in a pivotal time where Millennials and Gen-Zers aren’t interested in struggling to get by. Many of us share similar desires for a well-lived life instead of one consumed by poverty. Whereas the concept of “starting from the bottom,” attaining a quality of life and building generational wealth makes for a good hook, the truth is that the generational reality of beginning with nothing and navigating pre-set barriers meant to hinder us is all too real.
This revitalized urgency to ensure we have the necessary information to gain wealth is more than a trend—it is about our ultimate survival and collective advancement.
Here are three tips to get you on your way to building generational wealth.
Debt, Education and Goal Setting
Knowing where to start and what goals to set to acquire generational wealth can be daunting as various options exist. The simplest place to start is paying off debt, setting financial goals and seeking education. Ultimately, paying off debts establishes a positive rapport with financial institutions and allows you to build good credit. Furthermore, while decreasing debt, your primary focus can begin to shift towards realizing short and long-term goals such as buying a home, investing in property or starting a business of your own.
Multiple Streams of Income
The days of relying on one source of income to cover the costs of living are gone. The benefit of living in a gig economy is that you can tap into multiple revenue sources to reach your financial goals quicker. We’re not suggesting that everyone has to drive a rideshare or deliver pizzas either. You can accomplish this by earning passive income online, investing or opening a high-yield savings account.
Planning Beyond You
There is no purpose in building wealth if you do not know how to protect it. Estate planning is one of the more proactive methods in protecting the ones you love the most. An inheritance not only provides a financial head start but also an assurance of stability. Securing the bag in the present and the future simultaneously helps us beat systemic inequities while enhancing our own quality of life. As an added measure, estate planning is one of many methods available to establish the appropriate distribution of assets in the event of your passing. Planning ahead can often be a privilege that not many can access. Fortunately, there are tangible arrangements that will reflect your hard work while creating a legacy that will prosper so multiple generations can claim, “Now we’re here.”
