EP 059: Generational Wealth

The answer to that question may surprise you.... as it isn't something most people think that it is. 

Most people think about worldly possessions and money that they can pass down to the next generation. 

But you may be shocked to find out that the most valuable thing that you can pass down might not even be a physical thing. 

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In our previous episode, we broke down how to set and achieve goals... starting with reflecting back on this past year and gearing up for the new one. 

We are going to build on that same theme as we head into the year 2020. However, this will be beneficial no matter what time of year it is. 

So keep this one in your back pocket and pull it out when you need to "reset". 

Let's break these two terms down by definition. 

Because when most people think of "generation" - they tend to think about their family specifically or their blood line. But it actually is a general age group. 

Generational is 

"a body of living beings constituting a single step in the line of the decent from an ancestor"

So it could be a generation, like Gen X or the baby boomers. It also could refer to the very next generation coming up after you. 

Now when we look at the definition of wealth...

I think there is a huge gap that people miss when they think about the concept of wealth.

Wealth is 

"an abundance of valuable material possessions or resources"

A lot of people out there get stuck on that FIRST part of it... and they skip over the second part. 

They think that in order to leave something to the next generation, it HAS to be material. 

But the term is there - RESOURCES. 

I think about my kids, my church, my community and what I personally want to leave behind...

And it doesn't necessarily always have to be something material. 

It's very important to me that I leave RESOURCES behind. 

Long after I am gone (and as long as YouTube and iTunes still exist) people will still be able to go on the internet and get generational wealth in the form of resources that I have left behind and learn how to make their money work for them in the stock market. Then they can turn that into financial or material gain. 

Money is not necessarily the most important thing to leave behind...

But what if you left the BLUEPRINT behind on how to make money?

Let me give you an example. 

Think about the family that came from Cocoa Cola. 

Do you think that they are important because they have money and factories? Or the fact that they have a trademarked recipe that only the family knows what it is to create a one of a kind product? 

Of course the money and factories behind it are important and key... but their resource is unique and valuable. 

Back in the day when I was in network marketing, my mentor taught me something very valuable. 

He told me, "You aren't in this because you want to get out of debt or become rich. You're in this because you want to build as big of a network as possible so no matter how many products and services you get, you have enough people to deliver them." 

He continued, "Getting out of debt is a biproduct of learning how to lead and manage people and build a business." 

The resource of knowing how to be a great leader and taking products directly to consumers is the resource that I was actually after. 

Everything else would follow if I honed in and mastered that resource. 

Most people want to get out debt, to give to their families, to give their kids opportunities that they didn't have, and to give back more to their church or community. 

Most of us have this burning desire to have a "better life".

Whether that means working out more, eating better, living stress-free, etc...

When you think about the FINANCIAL results that come from paying for a better life we get bogged down on the vehicle and don't think about the resource. 

The HOW instead of the WHAT. 

But think about this... 

Whether it is investing in real estate, in 401Ks, in your education, in the stock market, in your job and getting better at what you do... 

It doesn't matter what your vehicle is. 

What matters is the RESOURCE that you can use to generate generational wealth. 

You need to become a person that invests. Period. 

It could be investing time, money, education...

But you need to invest. 

Bi-products of investing:

Once you know how to invest, you can generate wealth from your mind and not necessarily from physical labor or exchanging time for money.

You also have something to pass on to the family or generations that they can continue on. 

They then will have this IDEA as a resource.

The big picture is: you need to become an investor, no matter what form it is in, the stock market or not. 

That is the END GOAL, right?

But to get there, you need to develop certain characteristics and sub-goals that allow you to reach your end goal. 

Characteristics of an investor:

Investors take calculated risks

We take calculated risks every day of our lives. If you wake up and decide to pay $40K to go to school, there is a financial risk! You will always wonder if the money will come back to you. But if that degree is the difference between you making $40K on the job and $50K on the job - isn't it worth it in the long run?? 

You have to get used to making calculated risks. 

There is also the risk of time. 

When you decide to get a degree, you risk giving 4 years of your life and failing some classes and having to take them over again. 

Or what if you pay the time and money price, and then can't find a job? 

You have to weigh those pros and cons. 

Once you make the investment, you are becoming a BETTER INVESTOR.

Most people don't realize that they are already investing! 

It isn't about going to school or how much it is: You are becoming someone who can weigh the financial risks verses rewards, and the time risks verses rewards. 

The big picture isn't the thing you want in your life (ie: the degree, the nicer car, the house, etc...)

That's a bi-product of you being an investor. 

That ties back to "Generational Wealth": having this skill of investing is a resource that can be passed on to different generations. 

For me, it's the podcast, the blog post, the Youtube videos to try and help others. 

And I hope when I am gone people see that I was trying to help people get information for a reasonable cost - even for free - to be able to pass that education and knowledge to the next generation.

Whenever you think about your 2020 goals, or goals at any time for that matter, take a step back and think:

What is my ultimate goal?

It's to become a person who knows how to invest. 

It isn't to get out of debt - it's to become someone who knows how to handle their money. Getting out of debt is the bi-product. 

It isn't to go back to school - it's to become a person of value. Getting education is the bi-product. 

As you get good at investing, the money will follow. 

What do YOU want to leave behind? What is your gift to generational wealth? 

Think about it and then let me know... and remember: it does not have to be something material.