Ever heard of Generational Heritage?

When we think of building wealth, doing increasing net worth is only part of the challenge. Building a lasting heritage also involves drawing up a plan for how it will be transmitted to the next generation. Statistics show that a large part of high net worth families lose most of their value in the next generation. Despite the relevance, only part of the people who are planning this transition, discuss the topic with the next generation. Generational heritage is a term used to describe the accumulation of wealth, which is passed from one generation to another. It’s a concept that has been around for centuries, and has been the foundation for many successful families and businesses. The idea behind generational heritage is create a legacy that lasts for generations, providing financial security and stability for future generations.Read more: Do you want a peaceful retirement? Start preparing it now

Heritage and generational heritage: what distinguishes them

Inheritance and generational heritage, although related, are very different things. Heritage refers to heritage that is passed down from generation to generation, by will or other legal process. May include financial products, real estate, cash, etc. Generational heritage, on the other hand, represents the wealth that is accumulated and maintained for several generations within the same family. Basically, the inheritance is just a part of the generational heritage.The concept of generational heritage is increasingly relevant. As the cost of living rises and the economic context is increasingly uncertain, many families are looking for ways to ensure that their children and grandchildren have a better future. Generational heritage can provide a solution to these problems, creating a financial foundation that lasts for generations.

The construction of generational heritage

There are several key components to building generational heritage. The first is to create a budget and stick to it. It means set financial goals and create a plan to achieve them. It also means be disciplined in spending and save as much as possible. This will help create a strong financial foundation that can be passed on to future generations. Another important aspect of building generational heritage is invest. This can include stocks, real estate or other investments that have the potential to generate long-term income. By investing wisely, families can ensure that your wealth will continue to grow over time.Another fundamental component of building generational heritage is educate future generations about the importance of money management. This means teaching children about the importance of budgeting, saving and investing. It also means giving them the tools and resources they need to make informed financial decisions. By educating future generations about money management, families can ensure that their wealth will continue to grow for generations to come.Also Read: Prepare to Negotiate

Invest in the greatest guarantor of future wealth

Investing in education is a great way to build generational heritagel. Education is one of the most important investments a family can make., as it opens doors to career opportunities and financial stability in the future. By investing in their children’s education, parents are increase the probability of success and providing them with the necessary tools to achieve their goals. One of the most important aspects of building generational heritage is creating a family culture that values ​​financial stability and long-term planning. It means create a family culture that values ​​savings, investments and financial education.In conclusion, building generational heritage is not a one-time event, but an ongoing process. It’s needed patience, discipline and a long-term perspective to create a legacy that lasts for generations. By creating a budget, investing, educating future generations and building a family culture that values ​​financial stability, families can ensure that their wealth will continue to grow for generations to come. It’s a way of secure the future of the family and leave a legacy that will be remembered for years to comeRead more: Greed is good, according to Gordon Gekko Sérgio Cardoso was born in Matosinhos, in 1979. Graduated in Management from the Faculty of Economics of Porto, he attended The Lisbon MBA, which he completed at UCLA. He has made most of his professional career in media and entertainment. Currently, he is a consultant dedicated to helping companies in the various areas of management, which allows him to accumulate experiences that he transmits to students of the degree in Management, at UCP, where he is an assistant professor. The information contained in the article is not binding and does not invalidate the full reading of documents that support the matter in question.