Let’s think about the first statement that Bruce Lee said for a second and say, “What if I knew all the things about finance when I was 13-15 year- old versus having figured it out as I went along?” Would that have saved us countless headaches, stress related moments, and possibly a lot more money? Of course, it would have. There is continual exponential growth for multiple generations. However, it has also been said that most generational wealth will phase out by the time it reaches the third generation. That is in part due to the lack of communication between the generations on how the money was earned and how it should be managed so there is continual reduction of wealth for multiple generations. According to a study done by Fidelity investments 88% of all millionaires are self made, meaning they did not have their wealth passed down to them by any generation of family. A second study cited in the same article states a study done by Wealth-X that 68% of millionaires with a net worth of $30 million or more are also self- made. Now, how can we assure that our wealth will be protected and maintained through the next two to three generations? It goes directly back to the intangibles. For the book “Change Your Habits, Change Your Life.”, author Thomas C. Corley spent 5 years researching the daily habits of 177 self-made millionaires. Corley states that the number one “Rich habit”, a phrase coined in his book, is reading consistently. When it comes to education most people think of the
traditional way of being taught things which is going to school, then getting a high school degree, going off to college and getting a Bachelors, Masters and/or a PhD. When millionaires have 25- 30 minutes of free time it is spent wisely. As President Harry Truman once said, “Not all readers are leaders, but all leaders are readers.” Many millionaires do not care for entertainment but rather for self-education, self- improvement and knowledge. Education is not only receiving systematic instruction, but also the ability to apply and teach what we just learned to promote free thinking without oppression. It is not always easy to have those types of money and education conversations with others and it needs to be made clear that as we tell them our concerns, that we also respect their needs and concerns. As the leader of our life, the leader of our household, and the leader of our business it is your duty to create this type of environment of freethinking to allow those around us to grow. If it is important for millionaires to self educate, why is it that most generational wealth phase out by the time it reaches the third generation? Again, it goes back to the intangibles with our actions, beliefs, and the way we think that all comes from the values, morals and ethics that have been instilled in us. It is seen through our history and time that the wealthy pass on money, assets, business and so on to their heirs. At times they are seen as a product of nepotism and get the benefit of all the doubts. Years later we can see that the same business that was handed down a generation is now failing and
struggling to stay above water. As the business is handed down, three common factors started to dwindle: Ethics, Morals, and Values. Education goes far beyond the books, and tough real life lessons. In order to break this cycle of generational hiccups, we as the leaders of our generational wealth, our families, and business must change the way we do things and take action by demonstrating a clear preference for affecting positive change over the accumulation of wealth. In order to do that it starts with our beliefs. Our beliefs are what gives us trust, faith, and confidence in our own abilities and the abilities of others. If our beliefs are not in line with our ethics, morals and values then neither will our family’s nor our employees. It is our duty as leaders to teach and uphold higher moral and ethical codes that far surpass those imposed on us by local and federal governments. Once our belief system is in line with our morals, values, and ethics then we can change other things such as the way we feel. Changing the way we feel about events in and out of our control can lead to a clearer path of thinking. When we change how we think about generational wealth, educating others, and leading by example, it leads to something greater and that is ACTION! Action along with a vision is what brings us results, brings success, and brings us generational wealth. The action we must take is educating those that come after us to uphold the ethics, values, and morals that were set upon the first generation. ACTION without a vision is HALLUCINATION! And, Vision without action is a dream.
Live well and prosper fairly.
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