The ABC of Generational Wealth

What is Generational Wealth?

It is wealth that outlives the owner and is accessible by the next generation, and even the next.

Do you know that generational wealth is pretty easy to build?

Just like a house is built one block at a time, generational wealth is built one asset acquisition a time.

You do not have to be a multi-millionaire or a billionaire to build generational wealth, but you have to think like one.

So, here is the ABC of Generational Wealth:

A.   ACQUIRE (Asset Acquisition)

What is an asset? An asset is anything that, not only presently adds value to you but increases in value with the passage of time. Both the rich and the poor have the same time per day, per month, per year. The value and quality of your present time may have been foisted on you by birth, family, location, background and education, but the value and quality of your time (life) in 10 years is entirely up to you. So, if tomorrow’s quality must be better, it is common sense that you invest only in assets. The two best assets you can acquire today are viz:

1.    Education/Personal Development: Specialist Qualification, MBA, Globally and industry-recognized certifications. The more of these you have today, the higher your value (Employability, Earn-ability & Consult – ability) you will be tomorrow, consequently improving the quality of your life.

2.    Property: Property is the only physical asset that grows in value irrespective of the local or global economy. Particularly in a Nigerian environment where there is a housing crisis, and the population is exploding at a very scary rate. Where would the teenagers that constitute about 40% of Nigeria’s population today, live in 10 – 15 years’ time when they become adults? The house you buy for N20 Million today would more than double in value in 10 years’ time. Same goes for land. 

B.    BUILD

The word “build” is defined as the art of “constructing something by putting parts or material together”. It is important to see generational wealth as a building that is made of many parts, with the foundation being asset acquisition. It is not enough to acquire assets. It is also important to have the requisite skills to manage these assets. That means getting financial education, developing your emotional intelligence, mastering your negotiating skills, and expanding your network. These elements are the materials that ensure that you are able to solidly build your generational wealth. When you acquire an asset and do not have the financial education to manage your finances so you don’t sell off your asset before maturity; the emotional intelligence to be even-tempered and emotionally balanced, the negotiating skills to ensure you get good deals every time you are confronted with a negotiation situation; and expanding your network, knowing that your net-worth is as good as the quality of your network. Building also means remembering that it is generational wealth, which means that these acquired assets are supposed to be passed on to another generation, therefore, this generation needs to be in a position to understand the value of what is passed on to them, and manage it properly when it becomes there’s so that they can also pass it on to another generation after them. Building generational wealth will thus mean inculcating the right morals into your beneficiaries, preparing them to be in a position to manage the wealth. After all, success is a successful failure without succession planning.

C.   CONSOLIDATE

To consolidate means to make something stronger or more solid. So how do you make something stronger? The same way you make cement, a broom or a rope stronger – by adding to it. To make your assets stronger, you add to it, you diversify. This means that, in addition to personal development, buying a property, you buy more. This year you could buy a house in a location, the next opportunity, you buy a house in another location. The next opportunity, you buy a land. By doing this, you give your asset depth, make it unassailable, and greatly increase your possibilities of generational wealth.

Remember, your MBA, rented apartment at Lekki, 2017 Mercedes and membership of Ikoyi club is not transferable to the next generation.

The easiest thing to transfer outside a fat account (which depreciates in value with time) is property.

Act wisely. Get at least one property today. You don't even have to leave your posh residence now for it and live in it.

After digitization, the fastest thing happening now is urbanization.

Every present suburb you know today would be urbanized in 7 years or less.

If you would like to see different property options you can invest in to build generational wealth, you may want to consider visiting www.firebrandproperty.com or calling 08090522321 today to begin your journey to creating generational wealth.