Keeping Wealth in the Family

family

In the next 30 years, there will be a great wealth transfer through three generations. An estimated $30 trillion will be passed from Baby Boomers, to Generation X, and subsequently to Millennials. Now, let’s narrow down on the wealth transfer that happens within the family. It’s interesting to note that money typically dwindles away by the time that grandchildren get their hands on it. Passing on a fortune should guarantee a head start for future generations, but it sadly isn’t guaranteed to last. The key factor is wisdom. It is the most valuable asset to pass down, and even free if you work to obtain it.

Before you can pass wisdom to following generations, you must have it yourself. Now is the time to make some deliberate observations about your mindset and habits from moment to moment. Thoughts, actions, and your perpetuated mindset shape your life regardless of your wealth situation. Now, determine your mindset – do you have a scarcity or abundance mentality? Do you live life with values, integrity, appreciation and respect for others? Before you want the next big thing to be happy, enjoy what you have today.

It’s never too late to start building your positive mindset, regardless of your current financial situation. The following four steps will help get you started.

  • Define your purpose and what you value in life.
  • Ask yourself what you are doing on a daily basis to grow and learn.
  • Be clear about what you want and why you want it.
  • Look for the positive and adjust your thoughts and words—this will shape your habits.

The important end results that you should want to pass on are security and happiness. Happiness should absolutely outweigh the importance of wealth. We all know that kids watch and learn from adults whether we like it or not. They see how you spend your money, how you treat a cashier or a server, and how you respond to financial challenges. Let them see and hear a positive mindset, gratitude, and willingness to learn from the hard knocks.

It’s a fact; your family can inherit both wisdom and wealth and wisdom is arguably the more valuable of the two. Here are some ideas to teach kids financial wisdom and how to keep the money you leave to them:

  1. Revisit your financial strategy now. Do you just need to dust it off, or do you need to completely revamp it? Perhaps you even need to create it in the first place.
  2. Set up a will and trust to ensure all of your hopes and desires for the wealth you leave behind are backed legally.
  3. Spend time as a family talking about your family financial strategy and your beliefs about money—meet them at their age level, so they can grow up with this knowledge.
  4. Allow kids to create their own wealth using their available resources.
  5. Monitor your attitude to make sure your actions speak as loud as your words.

Your children and grandchildren can tell if you’re finding joy and fulfillment in the journey. They know if you appreciate what you have or if you think the world owes you something. They are affected if you never have enough, no matter how much you have. What mindset legacy will you pass to your kids? Because life isn’t a race, it’s made of moments; and every moment is an opportunity to shift your thoughts and behavior and create a better future for them.

To find out more about how we can help you achieve this dream for your family and future generations click on the image below.

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Paradigm Life

Paradigm Life (357 Posts)

Financial Services Company focusing on Infinite Banking and providing solutions to problems many American are currently facing. Located at 132 Pierpont Avenue, Suite 250, Salt Lake City, UT 84101.