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It’s Time to Talk About Generational Wealth

Let’s Talk About Generational Wealth.

Building generational wealth through property investing is a proven, time-tested strategy for families looking to secure not only their financial future, but the future of their families for generations to come. The property market offers so many opportunities for investors to grow their assets, create a steady stream of passive income, and provide a solid foundation not only for themselves, but for their children and grandchildren too.

Here in Australia, generational wealth is becoming progressively important, especially given the challenges that many younger Australians are facing when it comes to entering the property market and building on their wealth.  

It’s no secret that the cost of housing in many parts of the Australia have skyrocketed. But combine this with rising debt and stagnant wage growth, and what you have are a generation of young Australians who are finding it more and more challenging to accumulate the same level of wealth as previous generations.

But what is generational wealth and why do I need to know about it?

Generational wealth is a term that often refers to the accumulated assets, resources, and financial well-being that is passed down from one generation to another. It is built through proper financial planning and smart investment decisions that enables wealth to not only grow, but to sustain that growth across multiple generations.
But generational wealth is not something that’s built overnight. It’s a long-term vision, a long-term commitment and the earlier you start planning, the quicker you can begin paving the way for your family’s legacy.

So, where on earth do I start?

Start now.
Start with family. Building generational wealth is a family effort, so start by having a talk with your family and get them involved from the beginning. Talk to your partner and involve them in the decision making, talk to your children and while you’re learning all about the finance and investing world, let them grow and learn with you. Discuss finances openly with your family or even with your parents. Communication is key so keep those lines open and you’ll be passing down important knowledge to the future generations. Nothing is more important than family. So, make sure you’re working together as one.   

Develop good financial habits.
Good financial habits are essential and can help you manage your money more effectively and make smarter investment decisions.

This includes saving, budgeting, investing and managing your debt to help you uncover better financial outcomes. Forming these habits will aid you in managing your money better as well as to accumulate wealth over time.
Start saving regularly. Create your budget and stick to it. Most importantly, try to pay off whatever debt you have.

Invest. In property that is. Historically, investing in property has shown us relative long-term stability and consistent returns, making it a popular option for investing compared to stocks which can be quite a volatile asset. Property investing can provide long-term capital growth and a steady stream of rental income for you and your family, but investors must also be willing to weather market cycles and resist the temptation to sell during downturns.

Educate yourself. Do your research and above all, seek guidance when investing from the professionals. We are here to aid you through it all, to help you find a property that suits you and your needs but most of all, to help you and your family become financially fit for generations to come.

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