How to build generational wealth as a working woman

When I look at all the brilliant and encouraging statistics about women starting businesses, rising to the top of their careers, or just breaking barriers and boundaries, I realize how powerful we truly are, as women. What I also realize is that as women, this also means we hold the keys to building generational wealth.

The concept of generational wealth didn’t mean much to me until I started having kids. Looking at my children, and wondering what types of financial struggles they would have to go through as they grow up, prompted me to think more about money and wealth. I would look around at some wealthy families, wondering what it took to creating the type of wealth that doesn’t just benefit us, but benefits family generations.

As a first-generation immigrant from West Africa, raised in a single parent household, I did not come from money. However, my mother strived to offer me a private education, which exposed me to some of my peers who came from wealthy families. From an early age on, while I didn’t’ fully understand the meaning of wealth, I could already see its many advantages. As a child, I could already understand that rich parents tend to have rich kids who tend to be (and act) rich.

Decades later as I started my own family, I didn’t forget my first thoughts about wealth. I kept asking myself how we, as working women, can build the kid of wealth that can be passed down to future generations. According to financial expert Tonya Rapley of MyFab Finance, setting a good example as to our relationship with money is invaluable.

Here are 7 other tips that you can apply as working women to build generational wealth, regardless of your current financial situation:

Start with mindset

When it comes to money and wealth, it all starts with mindset. Wealth really starts in your mind! For many of us, a mindset of lack can be as detrimental, if not more, than blowing through your savings.

I personally had to do some work to cultivate a mindset of abundance instead of lack. Feeling worthy and deserving as a woman is the beginning of a healthy relationship with money. Unless you can see yourself as wealthy, you will not achieve true wealth.

Study

Contrary to public opinion, wealth building can be learnt. You don’t have to be born with a silver spoon in your mouth. Instead, you can attend seminars and workshops, many of which are now offered online.

There are numerous personal finance and wealth-building books for women. Some of my favorites include Smart Women Finish Rich by David Bach, Women & Money: Owning the Power to Control Your Destiny by Suze Orman, and You Are a Badass at Making Money by Jen Sincero.

Invest, invest, invest!

Only 45% of the 62 million salaried women participate in a retirement plan. Yet, women tend to be better investors than men. According to President of Personal Investing at Fidelity Kathy Murphy, “women have a long-term plan, and they stick with the plan”. However, many women are fearful to invest in the stock market.

Investing constitutes a large part of building generational wealth. Don’t be afraid to learn about investing, and applying your money to stock and property investments.

Investing in your children’s future is also crucial. Establshing a 529 plan for each child. to be regularly funded can avoid a lot of financial headaches in the long run.

Teach your children about wealth

From an early age on, my mother instilled in me a strong appreciation of money. I believe it’s thanks to her teachings that I always took budgeting and wealth-building very seriously. However, I wished we had more candid conversations about money to prepare me to the various aspects of managing and growing money.

Now with my own children, I insist on having honest talks about money and wealth. Both their father and I make it a point to teach them the value of earning money through allowances and responsibilities. We also take them inside the bank so they realize the meaning of this institution. Entrusting them with some money to budget and grow through chores and side jobs, as appropriate, can also go a long way towards teaching them about the power of wealth.

Diversify your income streams

As a child, I grew up with the notion that your income should solely come from your day job. Fast forward a few decades, I started making money through side hustles as well as my main job. This made me curious about diversifying my income streams. As it turns out, true wealth is built from a variety of sources. It is said that the average millionaire has at least seven streams of income.

Whether it’s through side hustles, building businesses, or generating passive income, creating and maintaining diversified streams of income is the key to wealth-building.

Get a Life Insurance Policy

A life insurance policy could be a valuable asset, especially for those who do not have many assets. It can be a relief in case of an untimely death, and replace financial payments which could otherwise no longer be made.

Additionally, the payout could be used to invest in opportunities or even fund a business venture. However, you may want to invest in a whole term policy, as opposed to one that may expire, in which case you may lose the money invested.

Don’t forget your will

When my grand-father passed away unexpectedly, he unfortunately did not leave a will. As a result, this negatively impacted the family’s inheritance. It taught me that as uncomfortable as planning for one’s passing can be, it is necessary to do so, as early as possible. It may be best to consult with an attorney if in doubt.