Everyone has been preaching for years that people need to focus on creating generational wealth for their families. During my time as a financial services practitioner, I’ve read hundreds of articles, research papers, and studies, all of which shed light on the fact that the wealth disparities in the United States continue to widen. So, are people focused on creating wealth or just earning enough to get by? The wealth data I continue to review year after year seriously disappoints me, which prompted me to start The #BuildWealth Movement™.
I can see the problem, clear as day. Our society speaks about how this is the land of opportunity, how you can create generational wealth, how you can “live the American dream.” Well, that dream isn’t a reality for millions of people, and it looks more like a nightmare. So, how about this? Let’s focus our attention on how we can disrupt generational poverty™.
Disrupting generational poverty isn’t something that my Movement can do alone. I’m just one person who is working to change the way people THINK and FEEL about money. During any interactions with individuals or groups, I feel that I’m doing my part to help disrupt generational poverty simply because I’m an expert. I’m giving really good advice. What people decide to do with that advice is up to them.
The way people THINK and FEEL about money causes you to do one of two things, make a decision or not make a decision. Notice that I didn’t say good decision or bad decision. Every decision you make has consequences one way or another. But, the thoughts and emotions around money play out in our everyday lives, sometimes to the detriment of future generations. Let me give you a few examples to drive home this point. I’ve had someone (actually, multiple people) say the following to me:
“My parents didn’t leave me anything, and I don’t plan on doing that for my kids. They’ll figure it out.”
“I had to work two jobs and I took out loans for college. I want my kids to learn the value of hard work.”
“I make good money, but I still feel like I’m living check to check.”
“Growing up, talking about money was always considered “grown folks” business.”
“My bank isn’t paying me much in interest, but if I put my money in the stock market, I could lose it all tomorrow.”
Now, how do you think hearing things like this makes me feel? In my earlier years as a financial planner, I used to get upset. Over time, I used such remarks as fuel to my fire, continued to work my plan, and ensured that people never EVER say such a thing like that again.
I also realized that many people don’t have examples within their families or community of what wealth looks like. It just doesn’t seem to be obtainable. Think about the kids who grow up in the hood. They idolize drug dealers, gang-bangers, professional athletes, or entertainers. Why? Because that’s all they see or hear the people talking about in their hood. If that kid is lucky enough to get some exposure to the outside world, they’ll most certainly aspire to do something different.
The same thing happens to adults. Many of us have been deemed successful by our peers or family because we have a fancy job title, nice car, and a house. You “appear” to be successful, but when you begin to delve into your financial situation, you realize the ugly truth. The job stresses you out, and you always fantasize about your dream job, but you’ve got bills, so those dreams get put on the back burner. You have a massive student loan balance, and you feel like it’s going to take decades to pay it off, if ever. The car is nice, but you have a huge car payment each month, and the car’s maintenance is a cash drain. The house, maybe it’s a decent spot, but you’ve got that mortgage and other expenditures coming out of your bank accounts just to maintain the place. Now, you’re left trying to figure out how to invest for retirement, paying for more life insurance, or saving money for a child or your children’s college education. Then you might be considering making an investment into more real estate, building an emergency fund, making sure your credit stays above a 720, meeting with an attorney to get your wills and trusts done, or maybe even starting a business.
Whew!! That’s a lot huh?
No wonder people can’t disrupt generational poverty. There just isn’t enough time in the day (so “they” say) or enough money coming into our bank accounts to handle all of this stuff. If you don’t personally know someone taking care of business, you don’t believe it’s possible. And, if nobody in your family or community is living the life you dream about, then YOU MUST BE THE FIRST!
Here’s my strategy on how we can all disrupt generational poverty. I am going to keep it as simple as possible. Experience has taught me that more people can adopt simple, as opposed to complicated. So, here it goes!
Write down the financial goals you want to accomplish. Be sure to segment them out based on time – – short-term (less than one year), intermediate-term (1 year – 5 years), and long-term (5 years+).
Take inventory every quarter; the best tool to do this is called a balance sheet. If you need one, send an email to email@example.com and write “Balance Sheet” in the subject line.
Do a budget; I don’t care if you use pen/paper, an app, or some fancy software. Pick a budgeting strategy you can commit to doing.
Strive to get all your credit scores above 720
Have a FULL understanding and leverage ALL employer-sponsored benefits
Get PLENTY of life insurance; If you’re single, you should get some. And, the coverage you have through your job isn’t enough, or it’s only enough while you still have employment with that company. Life insurance from your job is rarely portable.
Invest for retirement outside of what your job offers. (If your budget allows)
Have a non-retirement based investment account (If your budget allows)
Buy real estate
Have good tax person
Start saving/investing for your child’s college education right after their birth; (Everyone gets an 18-year head start, so what are you waiting for?)
Have a good estate planning attorney
Review and update your plan WHENEVER you have a life-altering event.
Start an investment club with your family or friends
Imagine if everyone followed these 15 steps. Of course, there are probably more things I could’ve listed, but this list is pretty solid. I even feel confident enough to guarantee that we could disrupt generational poverty for sure if everyone followed those 15 steps. But, I know people will make the conscious decision to do something different, even though I’ve given them the “cheat-code.”
Where do we go from here? Well, I need your help in spreading the word. I will not be able to disrupt generational poverty all by my lonesome. It’s going to take an army. I have many ideas on how to address this issue of generational poverty, and if you’re open to having a conversation and helping me out on this quest, shoot me a note to firstname.lastname@example.org, and in the subject line, write “Let’s Work.”
The #BuildWealth Movement™ works tirelessly to Disrupt Generational Poverty™ for everyone so their kids, kids, kids can live a life of privilege.