Generational Wealth Part 2

by rbenns on September 11, 2009

Financial LiteracyThis is part 2 of an on going series that I’m exploring on generational wealth.  If you haven’t read part 1 I would suggest that you do so.  This exploration is not necessarily in a chronological order but I feel it would be wise to have the best overview possible by reading all of the posts on the topic.

Let’s begin by defining a few words;

  • Wealth – a great quantity or store of money, valuable possessions, property, or other riches.
  • Rich – having wealth or great possessions; abundantly supplied with resources, means, or funds; wealthy
  • Abundance – an extremely plentiful or over sufficient quantity or supply

The above words don’t necessarily have to apply to money but for purposes of this  and future posts this is the context that I will use them.  I’d like to do a little experiment with you. (you should be use to this by now).  Close your eyes and utter these words to yourself “riches, overflowing abundance, property, great possession, resources, sufficient quantity, overflowing supply and excess supply of funds or money.”  How did that make you feel?  Did you get the warm fuzzies? Were you excited and happy?  Were you smiling? Did you feel empowered?

Now repeat the exercise and say these words to yourself, “little to no money, destitute, penniless, broke, no means of support,  no excess.”  How did that feel?  Did it set you on fire?  Did you have visions of losing your car or your house?  Did you see yourself not being able to support or feed your children?  Did you see yourself living in the Ghetto?  Did you see yourself with no college money for your children?  Did you see yourself driving an old beat up car?

Often the mental images that we have about our life are directly or indirectly tied to money or the lack thereof.  I agree with you that it probably shouldn’t be that way but it is.  Guess what?  We are only talking about the basics here.  This is no way close to creating generational wealth but it is the place you must start.  I once heard James Brown say, “you can’t get liberated by being broke.”

So where does one start?  I think the first Lego you should seek for creating your empire is the one labeled financial literacy.  Financial literacy is the ability to understand finance (money) and how it works.  I am not suggesting you become a financial planner but its your money and you better damn well understand how it works so that you can make it grow.

If you’re really serious about taking this to the next level click here for a free guide to the basics of financial literary.  Read this guide and you will know more than 98% of people in America.

I have a lot of things in store for the readers of this blog.  I will be coming out with a financial literacy course for dummies  in early 2010 so stay tuned for a phenomenal course.  I will have two versions, one for teens and another one for adults.  Do you realize that most teens don’t even know how to write a check?  Well, I’m going to do my part to change that.

The basics of creating generational wealth begins with a good foundation with the basics.  You must be brilliant with the basics before you can climb up the financial ladder.

That’s my spin on it

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