Creating Generational wealth


CEE DOG

CEE DOG

Well-Known Member
This one topic I think we don't discuss enough in the black community. My cousin sent me a link of one of my boys from AAMU talk show on his blog about it. He makes some good points. We are scared of getting a Will because we think its gonna kill us. Lol We don't teach our kids to save or that putting a dollar up is better than the new Jordans. I remember ago these young guys I worked with didn't invest in their 401K's. They thought it was a waste of time. Over the years I have met many folks who don't put money in their 401k's or any retirement investments. We gotta do better.

http://www.blogtalkradio.com/youretalk/2016/02/18/generational-wealth
 
It's hard to discuss what we don't know much about or what we don't understand. First, you have to start with the basics...Step #1 is Budgeting. That is something that I didn't see a lot of growing up. I never saw my parents sit down together and discuss what's coming and what's going out. In seven years of marriage, it's still a work in progress in my house. It takes a lot of communication if it's a couple. It takes a lot of concentration if it's a single parent. Money is a challenge for us. I agree, we've got to do better. We have to start budgeting and then work our way up to investing. A company I worked for in MS in my early 20's made 401k participation mandatory. When i look at those quarterly statements now in my mid-30's, i thank God that the company did that. LOL
 

I would love to hear some things from the older guys in here. Especially since I am young and haven't started creating a family yet.
 
I think see this as a necessary topic for young people as soon as possible. When speaking about "generational" wealth what I have seen from most people in my generation is the definition of "wealth". There are a group of us that have been taught that wealth is immovable assets such as land and houses or even diamonds and gold, others define it as the amount of liquid assets that you have access to. Once we define what wealth is then we can make strides to building it and passing it one. Our the influence that popular culture has on us in regards to our perception of what wealth is has been interesting to see. The craze over clothing labels is a perfect example.

I'm with you JSUTigers1877 I would like to get some advice from some older cats as well on what moves that can be made in order to get the wealth ball rolling.
 
I am grateful that I did see my parents budget, but they did not know anything about market investing. They did not have enough money to do property or market investing.

Most poor and low income people are not educated in finance. I try to pass on information to the next generation in my family, but some are not receptive. I post good finance articles that I come across on here as well.

You have to generate wealth, before you can pass it on. The first thing you need to do is to establish a solid budget that includes savings and reducing / eliminating debt (don't try to eliminate over night). In your budget you do need some money put aside for fun, just keep things within reason. Then you want to make plans to start investing (property, market, minerals, etc.. - just understand your investments and diversify). Educate yourself about what ever line of investing that catches your interest. What ever matching investing goes on at your job - PARTICIPATE!!! You need to determine your risk factor (when I say you, I mean you and your partner), you are much better off if you both understand and commit to the process.
Learn the difference between a need and a want.

Thats a basic start.
 
I went to a quick-start guide to reducing debt and building wealth presentation by Vanguard. The give these 5 steps:
  1. Pay with Cash
  2. Budget - spend less than you earn
  3. Save 12% to 15% (your 401k etc.. is included in that number)
  4. Create an emergency fund
  5. Pay off debt
 
Olde Hornet said:
I went to a quick-start guide to reducing debt and building wealth presentation by Vanguard. The give these 5 steps:
  1. Pay with Cash
  2. Budget - spend less than you earn
  3. Save 12% to 15% (your 401k etc.. is included in that number)
  4. Create an emergency fund
  5. Pay off debt
Click to expand...

Number 2 is the best thing anybody can do regardless of how much you earn... but it’s easier said than done.
 
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