generational wealth

How To Build Generational Wealth

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Save more, spend smarter, and make your money go further

When it comes to creating a life that has the ability to prepare the future leaders in your family for success, taking the necessary steps are vital. Let’s explore ways to guarantee financial security for the special ones in our lives.

Invest and diversify your portfolio

This may seem obvious, but be sure that you are contributing to your 401k account that’s offered via most employers. If you’re self-employed, there are also retirement accounts that are available for your long-term investment goals. There are various 401k simulators and calculators available that can give you a better landscape of how to effectively make your investments work for you.

Another option to explore are index funds, which are considered a group of stocks and bonds that aren’t actively managed by a fund manager. Benefits such as lower fees and taxes are also costs savings over time. Exploring this method allows you to learn more about the portfolio of stocks and bonds listed while earning income. As you determine your personal investment style (which can range from conservative to aggressive), this creates various growth opportunities. Learning a market that’s here to stay while also increasing your personal confidence with investing serves as a win-win situation.

There are over 20 million small businesses in the United States alone, equating to a limitless opportunity to scope the landscape of various industries and businesses. Due to new business owners emerging daily, you can make an equity investment. As an equity investor, you purchase shares of a company that are typically traded on the stock exchange. If or when the investment increases in value, you as the investor will receive the monetary difference if they sold their shares, or if the company’s assets are liquidated and all its obligations are met. This method is another way to apply diversification and making your money work for you.

We can’t talk investing without addressing a market that is currently in demand everywhere – real estate! This can also be a great adventurous, avenue to build wealth. Investing in properties (with the intent to rent or flip) in lucrative areas can create a nice cash flow to progress and expand in the real estate industry or use the earnings to create other money funnels. If the risk appears to be more skin in the game than you want to invest at this time, consider other less intimidating ways to get started. If you’re looking to move out of your current home, think about turning it into a rental property. Managed by you or a property management company, this can increase your net worth while also meeting a need for many people that may not desire homeownership.

Create a sustainable business

What are some examples of things that naturally create excitement or some of your favorite hobbies? What would you do for a living if money wasn’t an objective? Start with where you currently are and start a business that interests you. When most people think of entrepreneurship, it’s assumed to start very robust, which is far from the case. For example, if you are able to create and sell physical products or freelance a skill set that’s in demand – these are a couple of the many opportunities that are worth exploring. Scale based on your comfort level and adjust along the way. Every great leader has an origin story and the common theme is this: get started and commit to investing in yourself.

Teach the importance of personal finance and healthy money management

Each generation has a responsibility of ensuring the struggles you may have personally experienced shouldn’t be the ones that your children should also be forced to overcome. While many people believe generational wealth only entails establishing a surplus of money (which shouldn’t be disregarded or ignored) –understanding proper money management is equally important. Teaching your children, friends and family members about the value of money and the importance of establishing a healthy relationship with money as early as possible is essential. Adopting a money mindset before tackling any wealth endeavors allows you to not only imagine – but create a life that is purposeful and profitable.

Obtain life insurance

Often times the topic of life insurance arises during the untimely passing of a loved one. It’s imperative to discuss and create a plan for your family to avoid any financial hardship when a spouse or partner is no longer present. Typically, the younger you are the less expensive your monthly premium will be but it’s never too late to get started. Policy options differ based on age and health, so determine what’s most beneficial for you and your family. Specifically, with whole life insurance, a portion of the money paid in premiums accumulates as cash value and this is one of many benefits.

While life insurance is useful to make any final arrangements, it can and should be utilized for much more. Funding your children’s education, dreams and their future business ventures catapults their journey of maintaining and exceeding what you’ve created should be considered a huge success.

Create a strategic roadmap plan

Establishing generational wealth doesn’t occur by happenstance. It takes intentional planning, discipline and commitment to see this lofty, but attainable goal through. Having a series of regular planning sessions with your family creates alignment and understanding so everyone can be on one accord. In the instance there are seasons where the amount of vacations have to be reduced, less eating out and more home cooked meals or cutting back on impulsive decision-making has to be done; it’s worth the long-term sacrifice. Remember, plans are generated for goal setting and are far from stoic. Things can be adjusted over time and naturally will depending on personal obligations. The key is to have a framework that’s impactful and effective. Cheers to being empowered and remaining inspired on your generating wealth journey!

Save more, spend smarter, and make your money go further

Marsha Barnes
Marsha Barnes

Written by Marsha Barnes

Marsha Barnes is a finance guru with over 20 years of experience dedicates her efforts to empower women worldwide to become financially thriving. Financial competency and literacy are a passion of Marsha’s, providing practical information for clients increasing their overall confidence in their personal finances. More from Marsha Barnes


When learning how to build generational wealth, taking the necessary steps are vital. Let’s explore ways to set our families up for success.