Creating generational wealth is easier than you think!
I think it’s safe to say that we are all interested in our children’s financial health. I think it’s also safe to say that the subject can be quite daunting for many parents. I used to feel that way as well. Once I had my daughter I had this burning desire to figure out how I can create that generational wealth that can be passed on to her children and her children’s, children and so on.
So, after lots and lots of research I thought it would be a great idea to break it down into some really simple steps. I promise you, it’s actually quite encouraging once you learn that you really don’t have to come from money to create money. You can be the beginning of generational wealth. Let’s get into it!
Let’s first debunk some myths that are tied to creating generational wealth.
- You have to come from wealth to create generational wealth
- You have to have a financial advisor to help you invest your money
- You have to have a ton of money to save each month to make a million dollars
Okay so let’s start with the first one. This one is probably the most common misconception about money. Does coming from money sometimes help you get a head start? Absolutely. But, what is untrue about this myth is that you don’t have to come from money to create an abundance of it yourself. What you really need is time. The saying that time is money could not be more true in this instance. Let’s take a look and how.
If you were to invest just 25$ per month from the day your child is born, when your child turns 65 they could have $636,245. Now if you were to invest that exact same $25 a month starting when that child is 15 years old they could have $266,832. Now that is a HUGE difference and the only thing differentiating is the amount of time you’re investing.
What it comes down to is that the only thing that is stopping you from creating generational wealth is starting now. It has to start somewhere, right? So be that person that starts for your family!
The second myth is also a pretty common misconception. Does having a financial advisor help you create mass wealth? The short answer – not always. Financial advisors often charge large fees that can cut into a lot of the money you’re investing. Compound interest is the best way to ensure large returns on your money. So, paying an advisor to help you when you can just invest easily into a HISA (high interest savings account) on your own seems like wasted money on fees. Now if you have a complicated financial strategy, your opinion on this may change but with this super easy strategy of just picking an amount and sticking to shoving it into an HISA, I would opt out of the advisor.
My favorite HISA and the one I use is the Wealthsimple HISA. When you fund this account, you can actually watch the interest grow daily which I find super motivating. If you use my link and/or the code: NAZVWW, you’ll get your first $25 deposited as soon as your fund your account. You first month of saving for you child for free!
Okay so last but not least is that you have to have a ton of money to invest in order to create substantial wealth. The short answer to this is just that it’s not true. Does the more you invest snowball into a bigger amount – of course. But if you can find just 25$ a month to invest for your child, you’re talking close to 1 million dollars for doing absolutely nothing but just saving some money.
If you’re still not convinced – lets take a look at this photo I made. I’m using slightly larger numbers here but you’ll still see how wild this is!
So there you have it, mama! It’s wild isn’t it? We have the power to set up our children for financial freedom and we can do it at very little cost. I know times can be tough and even saving $25 a month can be tight but I have made a couple personal sacrifices so that I can start this journey and set up my child for their future. Just two less Starbucks runs a month allows me to set aside this money for my daughter and create that generational wealth we’re all striving for!
