Archive for January, 2014
You may not consider yourself wealthy, but if you are reading this chances are you have more true wealth than you can even imagine. In addition, you have an opportunity few will ever know, the opportunity to pass on four types of limitless wealth to your heirs. To pass on this wealth you must be purposeful in the legacy you leave, because if you are not you will pass on poverty and hardship to future generations; even if that is not your intention.
For the purposes of this article let us define wealth as a perpetual passive stream of income that meets all of your needs, most of your wants, and allows you to pass on a legacy of wealth for the next generation.
Now that we have defined what wealth is let’s discuss the four different types of wealth and how to build them, enjoy them, and leave them for the next generation.
CORE Wealth or Human Wealth.
Core assets are your Values, your Health, your Character, Family, Talents, Habits, Spirituality, and Heritage. It would be impossible for you to be where you are now without these core assets. Teaching your children how to be happy, healthy, and loving human beings is essential to their prosperity. People who do not enjoy the benefits of being well endowed in these areas rarely find happiness because they are totally disconnected from any core values and family.
Holding family meetings around the issues of health and happiness within the family is essential. It should be required attendance that all members of the family attend it the want present and future access to family wealth. If you are not passing along good health then you are passing along sickness. If you are not passing along happiness, then you are passing along imbalance and misery. Leaving money to unhealthy and imbalanced heirs is a waste because they will not have the tools and time to grow the wealth.
Intellectual or Wisdom Assets.
This includes your Knowledge, Education, Skills, Systems, Ideas, Methods, Experiences, Reputation and Traditions. It is important for the current generation to teach the next generation how they became successful. Most financial wealth comes from systems, methodology, and connections. People often remark that people from certain families or members of certain groups seem to find success so easy, but that is intellectual wealth in action. Make sure the next generation knows what you know. Write it down and pass it on. Mentor the next generation so they can skip some of the struggle and build on a more firm foundation. Do not send your heirs out into the world to start from scratch, to prove a point. Starting from scratch on proves what a poor teacher they had. I have seen my community do this with it’s children and in the end it killed the wealth of the entire family. Time, energy and money gets wasted because there is no one trained to carry on the family legacy.
Journaling and manual writing is critical. Recording information on video can also be critical. Share your truth and history. What are the decisions that changed your life for the better? What poor decisions did you make and recover from?
What systems did you use of invent to create grow? Write it all down and pass it along.
Financial Wealth or the Material wealth.
This includes your Real Estate, Stocks, Bonds, Cash, and other possessions. It is important to note that this type of wealth is just the things, not the means to acquire the things. So much focus is placed on this area of wealth that it is said wealth never last more than three generations. Become a student of the wealthy and what they do with their money. Forget about the stock market and all the crazy risk that poor people take. The wealthy use simple income protected and insured methods to preserve their wealth for centuries to come.c
There are billions of dollars in family trust that can never be squandered because it was built properly. You have access to the same tools but you have to put in the time to understand the process. You can’t teach what you Contribution
Contribution Wealth or Civic/Social Wealth.
This wealth includes your Taxes, Charities, Time/Talents, Family Foundations, and donating your wisdom to others in need. These good works and giving to the community at large keeps you connected to the wealth of the entire community. This ultimately benefits you and your family.
Not passing on a tradition of giving and contributing to the community lowers your standing in the community. Make giving a part of your children’s lives. Attend and support charity events that align with your values. Feed the hungry and cloth the naked. Don’t wait until you have millions, do it right now.
Studies have found that the number one leisure activity is meeting with tax planners to reduce or eliminate tax burdens. Do you know the difference between a tax deduction and a tax credit? You need to know this to build wealth.
How can serving others help you to become wealthy? Learn and teach.
Core wealth, Intellectual wealth, Financial wealth, and Civic wealth put together almost certainly assure a person will have a wealthy life and each area provides an ongoing passive stream of riches that will allow you to meet all of your needs, most of your wants and leave an even greater legacy to the next generation.
Look at the great families in your community and around the country and you will see them operating in all four of these areas. You will see that their wealth is never depleted because they have passed on much more than money.
If you had to give up one area of wealth and keep the other three, it would be wisest to give up the Financial Wealth because with the other three types of wealth you could get your money back in a very short time.
Wishing your Wealth, Wellness and Wisdom