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.

How Do You MAKE MONEY (legally)?

WHAT?!? How do you "make money"? What kind of question is that? The answer is: GO TO WORK! DO YOUR JOB.  You'll make your wage or salary and walk home with a paycheck or smiling at the automatic deposit in your bank account.


But that is not what I am talking about. I'm not referring to how you earn currency. I am talking about creating new money for which you can obtain currency. Here is what I am referring to.

Money is defined here as: Anything of use and trade-able value.

Again: Money is anything of usefulness and can be traded for something else. That means you can make almost anything into money. In the 1970's one man turned mere rocks into a purchasing craze: Pet Rocks. It lasted only a short time but for that short period millions of dollars exchanged hands and many people prospered because mere stones became "Pet Rocks" that people used for fun and happily traded currency for. It was fascinating.

If a farmer owns some land with a lot of stones on it and s/he collects those stones into a wire rack on a pallet, s/he can trade those rocks for currency - dollars and cents -  to a stone mason who may build a stone retaining wall for a customer who pays currency for the usefulness of the wall now owned by the customer. Those rocks became trade-able money by being collected onto the pallet, thus becoming building material instead of a mere nuisance to the farmer. 

The stone mason created more money by turning the rocks into a useful retaining wall for which the customer traded currency, perhaps. Maybe s/he traded another form of money, such as grain, fuel, or other labor such as automotive work or voice lessons. 


Money, obviously, using the above definition, can be anything that has a use, therefore if one wants to get rich all one needs to do is discover what others need and labor to provide it. Thus the sayings, "Find a use and share it" and "Find a need and fill it", and Zig Ziglar's famous statement, "You can have everything in life that you want if you will just help enough other people get what they want." 

 It is said, "It takes money to make money", and that is true. So what is a person who is just starting out to do? How does a person who has nothing get a start? Where does s/he get the money to get going making more?


God gave us four forms of free money: 
1.  physical strength and ability, 
2.  intellect, 
3.  time, 
4.  the earth. 

Each person can increase the value of physical skill and intellect by study and practice. This also increases the value of that person's time and perhaps the value of what that person makes from what s/he obtains from the earth. If that person wants to make money, s/he starts with what s/he obtained from God and begins creating something of value - new money - ultimately to trade the money s/he created (and does not need) to someone else to fulfill a need. The "poor" person may trade the ability and intellect and time God provided for currency to create some form of money - anything of use and trade-able value - for some other "rich" person who owns something of the earth. 

Trading time for money is a great way to begin getting wealthy. The "poor" person may labor to plow or sew or fish or mine or build, trading labor for currency as s/he labors to create  the product - the money - for the "rich" property owner, increasing his/her wealth (hopefully). Thus we have manufacture and exchange which is the essence of economy, the stability of society, the origin of opulence.

The "poor" person can save the earned currency until property can be bought. The unwise "poor" buy things, toys, liabilities that require more money just to keep, maintain and use - cars, stereos, computers, boats, etc - thereby actually becoming more and more "poor"; their liabilities' costs of maintenance add to their regular costs of living, requiring them to labor more, trading their time and skill just to keep up with the costs and not to become wealthy themselves. 

Wise "poor" people buy assets that earn/create more money - cash-flow real estate, stocks, lease-able equipment, businesses - thereby becoming more wealthy until finally those people find themselves members of the "Rich" society who hire others to create profits for them. Through wise use of God-given money each person can become wealthy by making new money and using it to fill the needs of others, for a profit, of course. Honest profit is, in this way, a good Divine gift.


As Robert Kyosaki says in his book "Rich Dad, Poor Dad", 
*  "Assets are things that put money into your pocket; liabilities are things that take money out of your pocket" and 
*  "The rich build assets that they use to purchase other assets. The poor only have expenses" and 
*  "If you want to be rich, simply spend your life buying assets. If you want to be poor or middle class, spend your life buying liabilities." 

So true wealth is to have lots of things, assets - lands, equipment, businesses - that produce enough to pay both people you hire to keep those things producing and you. Your labor, then, is to simply keep the people and tools producing new money, not to do the producing yourself. Supervision is almost always less physically taxing and it takes less time, thereby freeing the supervisor to use the free time in other ways. Taking a cruise is a nice way to use free time!

If, on the cruise, the wealthy property owner finds other people to serve with the money s/he creates, both hopefully, optimally, become wealthier with the exchange. What a way to improve the economy!

Again, Robert Kiyosak: "I have a problem with too much money. I can't reinvest it fast enough, & because I reinvest it, more money comes in. Yes, the rich do get richer." How do they get richer? By putting their money into investments that create new money and distribute that new money to those who have need and currency with which to trade. Get rich by making new money and trading it for currency. Thus the rich get richer. 

Do the poor get poorer as the rich get richer in this way? No. When more new money is made available, purchased, and used by the very rich, the older money is either sold a a great discount or cast off completely, thereby becoming affordable to those who are less rich. The "poor" actually become more wealthy as the "rich" buy new money and cast off their old, still very functional old money. Thus society on the whole becomes more and more opulent in its lifestyles. 

This is described in full in John Adams' book "The Wealth of Nations" circa 1776. It is very worthwhile reading and the true principles apply today as well as they did when Mr. Adams wrote them down. I suggest you at least give it a good scan. 

God Bless until next time.