In a world touting get-rich-quick schemes and lottery winners, it’s no wonder that so many of us want — and expect — wealth fast. We live in a social media age where we only see the fruits and not the labor, and the winners without the failures along the way.
We look for instant gratification and hope for a magic bullet to fix all of our financial problems.
This simply isn’t reality. Anything worth having is worth working for — your wealth included. While some of us are incredibly fortunate to have family wealth giving us a leg up, that too was worked for. Building generational wealth is no cakewalk. It won’t happen by playing the lottery or jumping on too-good-to-be-true pyramid schemes.
Building up wealth that lasts for you and your family after you’re gone? That takes more than money.
Here are our six secrets to building businesses, wealth, and legacies that last.
4 Keys to Creating a Lasting Financial Legacy
Set your sights on the future.
The first step in crafting a lasting financial legacy — something you can pass on to your children — is simply thinking about the future. While it’s not bad to live “in the moment,” we must devote our attention to the future. We see too often people who gain wealth and then squander it because they have not thought about the next five, ten, or twenty years. They haven’t considered how to maintain and grow their wealth.
Don’t be that guy.
Instead, be strategic about how you use your money. Rather than living it up beyond your means in the present, plan for the future. That means investing in things that last. Real estate is a prime example — we have many investors who hope to pass their holdings on someday. We as REI Nation hope to one day pass this company down to the next generation. We work with that in mind!
In some ways, it’s already happened: we are, after all, a family-owned business.
Pride yourself on your reputation.
Having something to leave behind after you’re gone isn’t all about the money. We’d argue that reputation is far more important. After all, what you have won’t last if people don’t stand by you. If your money, investments, properties, and holdings, are not managed well, you’re going to be up a creek without a paddle.
Protecting your reputation demands five things:
- Integrity / Honesty
- Excellence / High Standards
- Customer Service
- Due Diligence
When you have mastery over these aspects of investing and business, you will find that your reputation becomes something well-respected and lasting. Shakespeare once wrote, “what’s in a name?” A lot, we’d argue — especially when you work for it.
Make it legal.
You’re probably too young to want to think about getting your affairs in order. It might seem too far-off and unnecessary at this point in your life. But if we’re honest, we simply don’t know what the future holds.
No matter what you expect in terms of your longevity, it’s best to be prepared just the same. Part of creating a lasting financial legacy means crafting a will and an estate plan. Consult with an estate planner and lawyer to help you plan for a smooth transition of wealth and assets after you’re gone. Not only will it offer you peace of mind in the present, but an airtight plan will prevent heartache and infighting from family members.
We might not want to think about our deaths, but it’s a necessary consideration as we plan to pass things on.
Train up the next generation.
We can have all of the intentions of passing on our wealth to the next generation. We can build up a name and a legacy. We can have all of our paperwork in order. You can have a full, robust foundation that could build wealth for your children, their children, and beyond.
But if you have not trained up the next generation — your children — to follow in your footsteps? It might not be worth much at all when it’s all said and done.
As businessmen and women, investors, owners, and entrepreneurs, we have to invest in our children. Pass on your financial wisdom. Give them all the tools they need for protecting their reputation, guarding their integrity, and being wise with their finances. You can do everything in your power to make your wealth last, but if you neglect training, nurturing, and educating your children, you will find that your hard-earned legacy is easily destroyed.
Plan for the future. Start with REI Nation!