On this episode of Getting Rich, go on a financial journey with Carmen Perez as she outlines the pro tips and tricks to own your bank account, from credit scores to crushing student loan debt.
It’s never too soon to start building generational wealth! In fact, the earlier you start building generational wealth, the easier it will be to achieve. If you’re interested in building generational wealth but are unsure of where to get started, Carmen Perez (@makerealcents) of Make Real Cents is here to help.
In this episode of In The Know’s Getting Rich, Carmen shares some simple and effective ways to start building generational wealth, then sits down with Jimmy Levar, a 28-year-old dad who hopes to start building generational wealth for his daughter.
Carmen starts by breaking down exactly what generational wealth is, and for starters, it’s not just for rich people. Everyone can save money for the future! “The textbook definition of generational wealth is as simple as setting aside some cash and investments for your family,” Carmen explains. “The whole idea is taking some of the struggle out of your kids’ future.”
There are several easy ways to start building generational wealth. First, Carmen recommends investing in the stock market. Invest early and watch your money grow over time! “If the stock market seems scary, perhaps consider investing in a Low-Cost Index Fund or index ETFS,” says Carmen. “You can invest with as little as $5 to $500 and historically they have returns of about 8 to 10 percent.”
Then, Carmen recommends investing in real estate. Real estate is a practical investment because its value tends to grow over time! “Kind of a no-brainer, but investing in real estate is one of the best ways you can provide for your family long term,” says Carmen. “You also get the nice perk of being able to live in or rent out that investment.”
Finally, Carmen recommends taking out a life insurance policy for yourself. “Life insurance is one of the best ways to ensure that your kids or loved ones won’t be left in financial ruin if something happens to you,” she explains. “It’s important in building generational wealth for your family members that depend on you.”
Next, Carmen sits down with Jimmy Levar, a dad who wants to build generational wealth for his daughter. Jimmy asks Carmen how he should get started.
“I love that you’re already thinking about that!” Carmen exclaims. “So, things to start considering when building generational wealth is trying to get into the stock market as soon as possible.”
Carmen tells Jimmy that Low-Cost Index Funds are a low-risk way to start investing, and recommends he invest as much as his income allows.
Then, she goes on to recommend that he invest in real estate. “If you don’t have all the money right up front to buy a property, there [are] plenty of apps out there that allow you to do that in little pieces and for a fraction of the cost,” she tells Jimmy. “So something like a ground floor where you can actually utilize or take advantage of being able to invest in real estate without having to go buy the whole house.”
Carmen ends the episode by reminding viewers to be patient! She explains that building generational wealth doesn’t happen overnight. The important thing is to be consistent and try to continue saving money over the long term.
“There are no rules or minimums to building a little nest egg for your kids,” Carmen explains. “So even if you don’t end up hitting your goals, your family will love and appreciate the financial help no matter how big or small.”
Carmen is not a registered investment advisor. The above information is not investment advice and is intended for educational purposes only. Please consult with a financial professional to assess what investments are suitable for you based on your financial objectives, needs, and risk tolerance.
The post Generational wealth and how to start building it today appeared first on In The Know.
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