Loading...

Monday, August 29, 2011

Real Prosperity through Generational Wealth -- Starting a Family Bank

Have you ever considered how the super rich families got that way? Have you ever considered why the poor or lower middle class stay there for generations? How does one go about getting self and posterity out of the poverty or near poverty rut? How does one go about establishing a Wealth Legacy in one's family?

Well, I have given this much consideration for the past 39+ years and have finally discovered some people who willingly teach the basics in a course they call "Wealth 101". It is free every month in Salt Lake City. Douglas Andrews, an author/speaker/teacher and successful multi-millionair businessman, teaches the course as part of his marketing efforts to bring in clients for his financial services business. (www.missedfortune.com) His Mission Statement, written beautifully on the hallway wall of his office suite is an inspiration. Honestly.

In a country that is touted to be the most free, most highly educated, and one of the richest in the world, only 5% of the population knows anything about how to create generational wealth. Hence, only 1% actually does it. The rest of the 98% of the population either works for the duration of their lives, or they don't work and live on the government-distributed proceeds of taxes for the duration of their lives, and they pass on to their children the little they know about the creation of wealth, which is nothing at all.

The most people know is what they are taught: go to school, get a job, spend the money, save some money or don't, maybe try to invest, live the best you can until you die, pass on what you can to your heirs and hope they can do better than you did. With very little variation, this is what the bulk of the world population knows about the creation of wealth. It is a crying shame, but it is true. How do I know? Just look around you. Talk with people and ask what they know. Watch some of what they do. It is evident by what the net effects are.

Generational wealth is not created by leaving money to heirs. Well, not by that alone. 

Generational wealth is created BY LEAVING A FAMILY CULTURE OF WEALTH CREATION. This includes more of knowledge and learned wisdom than of actual money in a bank account or multiple accounts.

The Lee Brower Quadrant (www.leebrower.com) teaches principles that lead to generational wealth. If followed and taught to your children, these principles will create in your family a culture that will keep your family closer together, more wiling to work together in creative ways with love and gratitude and peaceful activities. Please note: it is the peaceful activities that can create the actual wealth as long as the activities are business oriented, meaning that they create new value in the way of goods and/or services and profitably distribute that value to end users/consumers. This is how wealth is created - by business activities - and this is how family generational wealth is created.

If you read about family dynasties you will read about a first Grandfather or Grandmother who WORKED HARD to keep the family together. Love and unity, looking out for the next generation, making certain each family member knows that keeping the family together is of PARAMOUNT IMPORTANCE, this endeavor was of paramount importance to those Grandparents.

You will also read of how legal entities such as trusts and family partnerships were used to preserve the wealth accumulated. What is not normally written in the biographies you may read is the set of rules regarding the use of the accumulated wealth that the family goes by. These rules are the rules that will actually determine how long and how well the family will continue to work together because of the nature of the natural man. I will briefly explain.

The natural man seeks to take care of himself and his own - spouse and young children - first and foremost. His parents and siblings come second, normally. Once his children are off and on their own his care is reduced to self and spouse with extended family second. If there is enough from his own production to share around, those closest to him receive the gifts. In a nutshell, this is about it. The more "civilized" and educated the man (and woman, of course) the more variations there are in this scenario, but this, in my own view, is the brief explanation of the nature of the natural man that actually tends to separate and diminish extended family ties. 

What binds families together? Love and money. What I mean by money binding a family together is that when there is not enough money to keep a person close to the core family, that person will go as far afield as is needed to find the money required to sustain that person. If a son or daughter needs to travel, say, 5,037 miles to find and keep a job then those miles will be traveled taking spouse and children along. If there is not enough money to make the trips home then the grandchildren will grow apart from their extended family, learning only legends, bits and pieces of family history. Love is engendered in these stories but if they are few and seldom told the love will be weak, insufficient for the most part to bind the grandchildren to the extended family. This is how families separate.

So how does a one go about establishing a longer lasting Family Legacy of Generational Wealth? By starting a Family Bank. (I color this green because green is the color of growing things and for the traditional color of USA currency, often known as the "Greenback".)

That Family Bank will be used to bless and assist family members in ways that will keep the family circle growing and strong throughout the generations. The knowledge of how to do this, I believe, is the missing link in the chain that so many parents strive to forge within the family they each create. This Family Bank and its proper funding and use is the part of the family dynamic that, I believe, keeps dynasties together and strong, growing ever stronger through the generations. 

I'll go into the specifics more fully in my next posting. In the meanwhile, you now have something to search. Study "How to set up, fund and use a Family Bank". When I place my own posting on the subject, I'll appreciate your comments. Share what you learn for others to use. 

My goal is to help as many people in the world utilize this powerful tool to strengthen their own families and to increase working wealth in the world that will be used by strong and loving people in good and profitable business ventures. It is profitable business that raises strong economies and strong economies bless everyone within that economy and nowadays economies reach even around the world, around the globe. Therefore, since "a rising tide raises all that floats", if we, you and I, can help 1000 families become financially strong and loving family dynasties who do not depend on government taxation and distribution of wealth but who work together in ways that create and generate new wealth, we will be economically helping hundreds of thousands, maybe millions more around the world, and that is just within three (3) generations. I like to think about that.

God bless you until we meet again.
Cameron (CV) Sevy.

No comments: