![](https://retireby40.org/wp-content/uploads/2023/04/What-Does-Generational-Wealth-Mean-to-You-350.jpg)
Will life become more difficult for the next generation? I think so. When I was young, everything was very simple. All we had to do was finish college and find a good job. After that, saving and investing is all you need to build wealth. A simple formula for success. A penniless guy like me can become a millionaire and retire early.
Life is much more difficult today. RB40Jr higher education costs more than 10 times what I paid. It also makes it harder to get a good job. Everyone has a degree now and it’s more competitive than it was in the 90’s. It’s not just about work or school. The next generation will have to contend with global warming, rising inequality, job insecurity, artificial intelligence, political instability and much more. Life will be a struggle for RB40Jr and his Generation Z cohorts.
helicopter parent
I want my son to be much more successful than I am. That’s what every parent wants. The next generation should be richer than the previous generation. Is it possible with RB40Jr? What can he do to be successful? This is a conundrum for all parents. My first instinct is to inherit as much wealth as possible.
This is the easiest answer. If he can give RB40Jr $10 million he should get a life sentence. Even if he can’t get into a good college or make a lot of money, he has enough passive income. Many would agree. In a Financial Samurai survey, handing over $10 million was the most popular answer. Insecurity of the not wealthy enough class.
But is it the correct answer? Money helps, but it does not guarantee success. $10 million could quickly disappear if the next generation doesn’t know how to invest. I read that 70% of wealthy families became less wealthy by his second generation. Worse, by the third generation he was 90% wealthless. It’s pretty disappointing. Why give all that money away if they just lose it?
Maybe I should use it all up before I go.
way of life
Meanwhile, I watched a program about the Lisu hill tribe on PBS in Thailand. They live in harmony with nature and have preserved their way of life for generations.
One interesting segment shows how they keep their wealth for the future. After the bountiful season they bury these melon squash in the hills.These melons are stored until the next harvest. They can go digging whenever they need food. Next year, when I go to work in the fields, I will dig them up and eat them. No need to bring a packed lunch. very convenient! They bury caches of these melons everywhere. The host asked why they didn’t put the melons in the fridge instead. The man replied that there were too many melons. Traditional methods suit their lifestyle.
Adults teach the next generation where these caches are and how to build them. These melons can only be stored for one year, but knowledge helps the next generation survive. They also know how to preserve bamboo shoots, vegetables, meat, rice and many other foods.
The squirrels appearing in the program look very happy. Hopefully their way of life will live on for generations to come. Portlanders aren’t much happier than the people of these hills. Today he met more than 50 people and none of them smiled.
wealth of generations
Passing on knowledge and traditions is a form of intergenerational wealth. Does RB40Jr have to give him $10 million?I don’t think so. My parents helped me finish college debt-free. I appreciate it very much. They helped me start life with a clean slate. Not many children today can say that. I do the same for my son. Inheritance is a bonus.
I also got a lot of good habits from my parents. I learned how to live frugally and save money. That’s the foundation of my financial success. My parents also instilled in me a survivor mindset and optimism. They went through much more difficult situations than I did. But they always think tomorrow will be better. Me too. No matter how hard today is, just get through it. Tomorrow will be better.
I will leave all of these to RB40Jr. We teach him to save, invest and survive. It’s not $10 million, but it will help address many of the issues facing the next generation. He needs to carry on the RB40’s path to future generations.
What does generational wealth mean to you? Do you work hard to pass as much wealth to your children as possible, or do you want them to build their own wealth?
Unearned income is the key to early retirement.Recently I have invested in commercial real estate crowd streetThey have many projects across the country. Check them out!
Disclosure: We may receive a referral fee if you sign up for the Service through a link on this page.
Unearned income is the key to early retirement. This year Joe is investing in commercial real estate on his CrowdStreet. They have many projects across America, so check them out!
Joe also highly recommends Personal Capital for DIY investors. They have many useful tools to help you achieve financial independence.
Get updates by email:
Sign up to receive new articles by email
![](https://retireby40.org/wp-content/uploads/2021/03/2017Head150.jpg)
![](https://retireby40.org/wp-content/plugins/OptinSkin/front/images/lock.png)
we hate spam as much as you