The word generation wealth is increasingly popular, especially among those who are starting to care about long-term financial planning. It’s not just about being rich for yourself, but how to build a financial foundation that can be passed down even up to seven generations.

This term is not just a dream, but can be realized with the right planning from an early age. Having generation wealth means creating economic stability for your children, grandchildren, and the next generation. Generation wealth is not just about accumulating money, but also forming mindsets and systems.

This will keep your wealth rotating and growing in the hands of the next generation. Then, how can you prepare all of that? Check out the full explanation and strategies in the article that Treasury has summarized below.

What is Generational Wealth?

Generational wealth is wealth that is passed down from one generation to the next. This wealth can take the form of physical assets such as property, family businesses, investment savings, as well as intellectual assets such as education and financial values instilled early on.

Having generation wealth not only ensures financial comfort for your offspring, but also opens up opportunities for them to grow without excessive financial pressure. They can focus on building a better future with this support without having to start from scratch.

What needs to be emphasized is that generation wealth is not just for the elite. Anyone, including your buddy, can start building wealth across generations from now on. The key is consistency, careful planning, and an understanding of the true value of wealth.

In this context, generational wealth becomes a very powerful empowerment tool. Generational wealth is not just a material legacy, but also a legacy of positive mentality, financial literacy, and long-term planning that will be an important provision for the next generation.

Strategies for Building Generational Wealth

To create sustainable generational wealth, you need to have a comprehensive strategy that includes three main stages: building assets, increasing assets, and passing on assets. All three are important pillars in creating wealth that is not only large in value, but can also last long in the next generation.

Building assets is the crucial first step. Without solid assets, there is no wealth to pass on. Once the assets are accumulated, the next task is to increase their value with the right management and development strategies. Once stabilized, ensure that the assets can be passed on legally, fairly and sustainably.

The following is an in-depth explanation of the three pillars in the strategy to build generation wealth that you can apply from now on.

1. Building Assets

Building assets is a key foundation in creating generation wealth. Without strong assets, the wealth that you want to pass on will be difficult to sustain in the long run. Assets here include various forms such as gold, property, stocks, mutual funds, and businesses.

Gold is an asset that has been on the rise again recently because its value tends to increase over time. In addition, gold is also known to protect the value of assets from the onslaught of inflation so that it can be stored in the long term without losing its value and is dubbed a safe haven.

Even gold in digital form provides many conveniences that you can consider to build generation wealth. You can make transactions anywhere and anytime only through smartphone applications. As in the Treasury application, the digital gold that you have is free of storage fees and is guaranteed to be safe.

Building generation wealth through assets is not an instant process. You need to manage your budget, reduce consumptive spending, and continue to increase your income. The assets built will be a strong foothold for the next generation with a measurable financial strategy starting now.

Also Read: 7 Financial Strategies to Retire Early with Comfort – Treasury

2. Enlarge Assets

Once assets are established, the next step in creating wealth generation is to increase the value of these assets. This can be done through reinvestment, portfolio diversification, and business development. For example, if you have a family business, don’t just be satisfied with the current conditions.

Develop the business so that it can last longer and reach a wider market. The next generation can continue this business without having to build from scratch. Reinvesting profits from existing assets is also an effective strategy.

Instead of spending assets on consumptive things, you can reinvest profits into more profitable instruments. This will create a snowball effect that continues to increase your wealth over time.

It is also important not to put all your eggs in one basket. Asset diversification will help you deal with market risks and maintain wealth stability. This is one of the main principles in increasing generation wealth safely and sustainably.

3. Passing on Assets

The last and most important step in building generation wealth is the process of passing on assets. It is not enough to have wealth, you also have to ensure that the wealth can be transferred easily, legally, and without causing conflict. Asset inheritance requires neat legal planning.

Documents such as wills, inheritance agreements, and life insurance need to be prepared early on. The process of asset distribution will be smoother and reduce the potential for disputes between heirs through legal documents. In addition to documents, education to heirs is equally important.

If you have digital gold assets in Treasury, you don’t need to worry about this issue anymore. Treasury has a Heirs feature that will ensure that your assets are handed over to the rightful party if you pass away.

Make sure the next generation understands the value of the inherited generation wealth. Do not let the assets become a source of conflict or be spent without calculation due to lack of financial understanding. You can also consider forming a family foundation that can manage assets professionally.

Building generation wealth is a long process that starts with intention and consistency. It is not about getting rich overnight, but rather creating a strong foundation for the family’s future. From building to passing on assets, all steps must be carefully planned and executed with discipline.

You can start from small things like saving gold, learning to invest, buying productive assets, and educating your family about finances. Generation wealth is no longer a dream, but a real goal that can be achieved as long as it is done with the right strategy and purposeful approach.