The topic of building generational wealth always catches the ears of people looking to leave a legacy behind for future generations. It is a popular discussion whenever you talk about financial literacy and financial stability.
It is a selling point when you hear instructors, investors, or financial advisors talk about planning your financial goals for the future. But what does that look like, and is it feasible in today’s market and work environment?
According to data from black demographics, we (black people) are still behind when looking at the median family income compared to white families. So what are some things black families can do to start to build that wealth.
The first thing that is the most important that everyone should do is to get a plan together to solidify what is the target number that they need to reach or would like to reach when it comes to setting that foundation.
Many black people work at a specific job, and some can contribute to their 401K. So planning for your retirement and making the right investments will help build the foundation of the things to leave behind.
Another thing that can be very beneficial is leaving something tangible behind, whether that is land, property, or a profitable business, which can be viewed as an asset and has value when the kids and grandkids take over.
Another way is strategically looking at investing and figuring out what works for you. The word “investing” is thrown around a lot and can mean many things, but we are referring to putting some disposable income in the stock market and cryptocurrency.
These are two markets heavily used by those looking to grow their money. The stock market and mutual funds have posted positive returns over the decades.
Then Crypto is the new digital currency that has taken the investing world by storm and has not looked back. It is a currency that seems to have staying power.
There is no one way to build wealth for your future generations. However, the key is to start planning and organizing a goal that works best for you and your family.
Here are some great podcasts that you can listen to that will help with ideas. But also remember to do your research no matter who you get your information from, whether it’s going to a library or online research.
Earn Your Leisure and Anthony O’Neal are two podcasts that you can start listening to and get some good guidance on financial literacy and financial goals.