Generational Wealth Re-Imagined

Generational Wealth. What does it mean to you? Let's break it down. According to the dictionary, "generational" refers to people of the same age or family members within about a 20-25 year span. Wealth is the state of being rich. The Bible defines wealth as adequate physical possessions to live and flourish as a human being created in the image of God. Rich is a state of mind and money just gives us more choices.

In the context of building generational wealth, we can reframe it as "multi-generational abundance." What does that mean? It encompasses parents, kids, grandkids, and beyond, with abundance extending to the mind, body, spirit, and wallet. Today, we'll provide a high-level overview of the components involved in creating multi-generational abundance, including what to do and what to avoid.

Now, let's explore the emotional impact of the phrase "multi-generational abundance" on you. Say it out loud, "I AM going to build multi-generational abundance." Does it evoke excitement or fear? Pay attention to your reaction and write it down.

After interacting with over 10,000 working creative Americans in the past decade, I can confidently say that the answer is a resounding YES! Every individual desires freedom and a lasting legacy. However, despite this shared aspiration, the majority of Americans find themselves broke and struggling.

Something is fundamentally wrong with the education, decisions, and actions being taught to us. According to the US Department of Social Security, only 5 out of 100 individuals achieve financial independence by retirement. Our system is flawed, and there is a better way that has been around for over 200 years. The good news is that creating multi-generational abundance is a choice and entirely possible.

When you make this choice, anchor it to a powerful emotional outcome that will keep you motivated long after the initial excitement fades. Ask yourself, "What's your 'Why'?" The quality of our lives is determined by the questions we ask, the decisions we make, and the actions we take. In life, we face two types of pain: the pain of regret or the pain of discipline. The choice is yours. Make the choice.

To gain insight into what works and what doesn't, let's examine history. Success leaves clues, and history provides valuable lessons. When embarking on a new venture, it is beneficial to find someone who has achieved the success and lifestyle we desire and model their approach. While it may sound simple, it is not easy. History offers examples of families that successfully created and maintained generational wealth through solid financial and philosophical plans, as well as families that squandered their fortunes by neglecting these principles.

Let's begin by looking at the Rockefeller family, who prioritized long-term multi-generational vision and strategic planning. They focused on solving people's problems and creating value through sustainable business models that generated continuous income and growth. Diversification was a key strategy for them, spreading risk across various industries and asset classes to seize market opportunities and mitigate risks.

The Rockefeller family also emphasized financial literacy and passed down beliefs and values related to work ethic and education through generations. Additionally, they embraced philanthropy, supporting causes in education, healthcare, arts and culture, environmental conservation, and social justice. Their generosity extends beyond public records, with their family office supporting numerous individuals. Their culture of creation and meritocracy fosters abundance.

Contrastingly, the Vanderbilt family squandered a massive fortune accumulated by Cornelius Vanderbilt. While Cornelius turned a borrowed $100 into $100 million (equivalent to around $3 billion today), subsequent generations failed to sustain their wealth. The Vanderbilts focused primarily on the railroad industry, lacked a strong work ethic, and indulged in lavish spending. Their pattern was one of squandering and gambling away their fortunes.

Here are the lessons and outcomes we can learn from these two historic families:

Diversification:

The Rockefellers diversified their wealth across multiple industries, while the Vanderbilts concentrated on the railroad industry.

Philanthropy:

The Rockefellers established foundations and made substantial contributions to philanthropic endeavors, whereas the Vanderbilts focused more on accumulating wealth for future generations.

Financial Education:

The Rockefellers placed a strong emphasis on education, equipping their family members with the skills, knowledge, and mindset to responsibly manage and grow their wealth. In contrast, the Vanderbilts provided education to their children but lacked a structured and systematic approach.

Work Ethic and Meritocracy:

The Rockefellers instilled a strong work ethic and promoted a culture of meritocracy within their family, encouraging individual achievement and responsibility. The Vanderbilts, particularly in later generations, faced challenges and succumbed to patterns of lavish spending, depleting their substantial wealth.

Rather than solely striving for generational wealth, let's reimagine it as "multi-generational abundance." History offers us invaluable lessons on how to achieve this. The choice is now yours. We can guide you on this journey, starting with understanding how money truly works and establishing a solid foundation for generational wealth creation. Will you take action or simply be entertained by this information? Choose to learn, take action, persist, and repeat until you reach your goals. Just do it, be like Nike.

Want to dive deeper into this topic? Check out our podcast on Exploring Strategies and Options for Smart Financial Decisions: Apple / YouTube