Start Building Generational Wealth Now
23 August 2017 FINANCE
By Zuko Komisa
We’ve all heard how important it is to build wealth, how there are very few things money can’t buy, how opportunities are all around us and how we must always look into the future.
Every generation of your family needs to carry the legacy of the previous generation. This is a very challenging responsibility in South Africa, considering our past. You can see it with the advent of ‘Black Tax’ which has both positives and negatives in wealth building.Generational wealth means building wealth over generations. inculcating these values over time in your children and proactively setting a standard that establishes a foundation to coming generations. The are few things to consider when it comes to generational wealth building.
Jay Z in his critically acclaimed latest offering 4:44 has a song called Legacy, where he shares his views on the importance of building generational wealth. In the lyrics, he comments on the changes that happen with every generation and how free we will all be if we all start today considering the legacy we will leave for our descendants.
“Generational wealth, that’s the key
My parents ain’t have s***, so that ship started with me
My mom took her money, she bought me bonds
That was the sweetest thing of all time.”
We can all trace the origins of our ancestors, how they moved to the city to make life better for their families. Many South Africans are descendants of migrant laborers, helpers, miners etc. They certainly weren’t rich but they sure worked hard. They are the foundation of the beautiful story the descendant should be telling. It’s very important to start early making money work for you not the other way round; the core principle is making your money work for you.
What great story can you tell about your ancestors who have put you where you are?
DR Umar Johnson who was recently in South Africa spoke clearly on this concept of Generational Wealth.
Your offspring need a better start than you had. In all aspects parents alway want the best for their children, all the things they never had growing up whether it be financial, opportunity and health wise. You want your children, to have a good start, one which was far better than yours.
A lot can change in one generation. The stories of how my parents grew up, how they would fetch water from a lake, had no electricity, lacked opportunities are very different to challenges I am facing today.
Fast-forwarding your imagination of the challenges the next generation will face shows you why it’s important to build the next generation. You will need to initiate a legacy of forward thinking.