Six Habits to Building Generational Wealth

Families who build and retain generational wealth do much more than accumulate money. They adopt healthy mindset habits and take action!
Ben Franklin said, “all mankind is divided into three classes: those that are immovable, those that are moveable, and those that move.” Families that build generational wealth are willing to embrace the belief that being wealthy is a positive attribute.
Six Habits that will help you get started shifting your trajectory toward generational wealth and building a legacy for your family, include:
First, shift from depending on making an income, to following the balance sheet. The Income method depends on the income that an employer pays you. The balance sheet method follows assets (what you own) less liabilities (what you owe) ending up with what it purely yours to keep.
Secondly, utilize the balance sheet to take an honest look at where you are. Most people mistakenly believe that their home is their biggest asset when in fact it is their biggest liability. Taking this courageous step of establishing a reality check, will set you up for success.
Thirdly, surround yourself with others who understand the value of building wealth. Those who have grown up with a healthy mindset around building a legacy of generation wealth; people that work smart and enjoy their life.
Fourthly, open an investment account. At first you may put a small amount of money in this account but over time you will develop the habit and start to see results. A great book that promotes this success with called The Compound Effect by Darren Hardy. This book really helps you build your saving muscle.
Fifth, become familiar with the psychology of money by reading books, listening to podcasts and training your family on the values of money. Now you notice that I did not say “the love of money.” Most 20- to 30-year-olds say that their parents never taught them about financial literacy and money. Instead, they said – grow up, go to college, get a good job and be like everyone else. What if you could give them much more…by teaching them the life skills of financial literacy.
Sixth, solidify your transformation by changing your identity. Changing your beliefs about yourself, your judgements and your relationship around wealth and money. I had a sister in-law who grew up poor and long after she grew up, married, and had a husband who earned an excellent income, still claimed that she was poor. This defeatist philosophy not only kept her from enjoying life and building a legacy for herself and her children, it was also very detrimental to her relationship with her husband.
Outcomes are about what your get. Processes are about what you do. Identity is about what you believe.