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All of us want to give our children the best, and often that includes financial security after we’re gone. In a nation where even people making six figures may be living paycheck to paycheck, creating not just a nest egg for your kids but a sustainable inheritance can prove intimidating. But fortunately, building wealth that can live on and grow for generations to come isn’t as difficult as one may imagine.
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GOBankingRates consulted a number of financial experts to get their insights on the best ways to treat your money in order for it to keep on giving for many years to come.
Adopt a Big-Growth Mindset
“Building generational wealth starts with a big-growth mindset,” said Shawn Laib, an investment expert with The Truth About Insurance. “This means that you have to pursue a field that has the potential for huge gains over a long period of time. Entrepreneurial ventures are the only way to give yourself a chance to reach this milestone. Think about what interests you that could be built into something bigger over a long period.”
If this sounds a bit too vague to you, look to examples of famed legacy families who only become more massive in value as time goes on.
“A great example is the Walton family, who started Walmart,” Laib said. “Try to think of a sales concept like they did that will outlast whatever generation we are currently living in.”
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Have a Clear Plan for Your Money
“Over the course of your career, whether you earn fluctuating income, or a steady paycheck from a large employer, it is important to build a plan for how you will save, spend and give your money each year,” said Julian Schubach, VP, wealth management at ODI Financial. “With a sound plan in place each year, you can focus on automating your contributions to different goals. As we say to clients, it’s best to be prepared ahead of time as opposed to trying to figure out what to do with money once it has already accumulated without a clear plan.”
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Invest, Invest, Invest — ASAP
“The most important step a person can take to build generational wealth is to invest, invest, and invest– as early and as much as possible,” said Leah Bourne, managing editor at The Money Manual. “Creating a diversified portfolio in the …….