Break the Cycle: Creating Generational Wealth

There was a constant pressure of becoming the “successful one” in the family and this comes after watching my parents trying to survive my whole life. When I heard about generational wealth I always thought it was for rich families with big businesses and trust funds. But the older I get, the more I realize that sometimes generational wealth begins with one exhausted person deciding the struggle stops with them. That is me.

Generation wealth matters the most to me because I saw how hard my mother had to work as an entrepreneur to make ends meet and watching my disabled father lose his job and struggle to provide for me and my sister. Coming into adulthood I had to navigate my way with the life skills learnt from my parents and create a life for myself. However, because always being in survival mode felt like the norm, I wasn’t zoned in on generational wealth. That was the culture shock coming into adulthood because surviving in this economy is not for the weak and faint of heart. Adulthood for me changed my perspective about money and building generational wealth.

Many of us inherited survival habits instead wealth habits which become the definition of who we are and how we function as adults. It’s always living from paycheck to paycheck, hustling for the next meal, borrowing to stay afloat, having no savings, not having a financial plan. Then this triggers psychological problems from always being stressed, pressured and living in constant survival mode. Our nervous systems are in overdrive.

Creating generational wealth starts with your money mindset.

Firstly, it’s shifting your mindset from scarcity to abundance by rewiring your thought patterns. It involves reframing negative self-talk like “I never have enough” or “I can’t afford it” to “I have enough for today and will work towards financial independence” or “I have other priorities right now.” Secondly, it is overcoming the fear of talking about money and shifting from blame to accountability. Yes, you may not have good money habits because you are an emotional spender but acknowledging your bad habits and changing the conversation to how you can find other ways to manage your emotions and what you will actually do, opens up the pathways to fix your relationship with money. Thirdly, you have to overcome the guilt of wanting “more”. Based on your upbringing, settling for the bare minimum might have seemed normal. Owning properties, businesses and advancing in your career may feel like you’re stepping beyond boundaries that are not meant for you. It feels too much or too good for you. So retraining your mindset is the first step towards generational wealth.

Generational wealth Is more than just making millions.

Generational wealth it not just about luxury and a trust fund. It’s about creating strategies and systems that that lead to life long, sustainable wealth, like:

· Paying off debt: This helps stop generational poverty in its tracks because it frees up more cash and capital that can be used to acquire appreciating assets that can be passed down to your children.

· Creating stability: This is the foundation for generational wealth because it takes you out of survival mode and into long term financial success by establishing emergency funds, clearing debt, investing and acquiring assets.

· Owning land/property: This is a tangible and appreciating asset that can be passed down.

· Building a business: This is also an appreciating asset that can be passed down and also be sold.

· Investing consistently: This is compound growth, where your returns are reinvested to generate more earnings. Over-time it creates a long lasting financial legacy for your future generations.

· Teaching your children about financial literacy: The greatest financial gift we can leave our children isn’t money. It’s the knowledge of how money works. Someone who understands how to grow resources and create opportunities is far more likely to build lasting wealth, regardless of where they start.

Practical ways to start building generational wealth

· Create an emergency fund: saving for eventualities so that you can avoid debt.

· Budget: start taking back control of your money.

· Increase income streams: one source of income may not be enough to build the legacy you want to leave.

· Invest in skills/certifications: one of the highest Return On Investment methods as it maximizes your career and business growth.

· Get life insurance: a tool for passing wealth from one generation to the next.

· Build better financial habits: practicing better money habits form the basis of creating generational wealth.

· Teach children about money early: enables the next generation to move forward with confidence and saves them time during adulthood in navigating their finances.

What I’m learning in my own journey

Over the past decade I have experienced the ups and downs of navigating my finances and building generational wealth. It wasn’t until I hit my 30s where I started to zone in how I can build a lasting legacy for my children. So I had to start from ground zero except I was equipped with over a decade of experience, charged and ready to lock in on creating a future that both me and my children can benefit from. I’ve learnt that it’s okay to make mistakes and start again from day one. The key is to start right where you are.

These practical tips I’ve shared are exactly what I had to return to in getting back on track with breaking generational cycles and fix my relationship with money. Mastering your money definitely starts with your mind. I’ve had to constantly rewire my brain to stop thinking from a place of lack and into abundance so I don’t get trapped in a never ending loop. Every trip to the supermarket, visit to the pharmacy and monthly utility bill is always a constant reminder that this economy is not going to get any better. However, I can empower myself in money management to stay ahead of the game.

Building a sustainable family legacy often looks messy before it gets off the ground. That means sacrifices have to be made, there is burnout, working multiple jobs, raising your children while building and helping your family while you’re trying to help yourself. You will have to stretch beyond your limiting beliefs and conquer the very thoughts that have made you who you are. People celebrate the finished product, but nobody talks enough about the loneliness of building something your family has never seen before. Sometimes being the cycle breaker means you’re the one making the hard decisions nobody before you had the privilege to make.

At this point in my life I think, “maybe generational wealth starts long before the money. Maybe it starts the moment I choose healing, discipline, ownership, and a different future.” I’m grateful for where I’m coming from and how I started but now I’m more focused on breaking cycles and creating something that will extend beyond generations. A formidable financial future.