Generational Wealth
Generational wealth; is wealth & resources handed down or inherited from generation to generation. In ancient Afrikan times, one could find families handing down wealth (land, resources) etc. When Black people in America talk about wealth, often we talk about the misconceptions of what wealth really is about.
Black people talk about BMW, Mercedes, cars; rolex watches. Black people in this country are ignorant to how to handle money, nor how to generate wealth. Wealth to hand down for the next generations. As a young teenager I was eager to work & have a job so that I could buy my own sneakers, my own CD’s etc. But as a teenager, I didn’t have parents who encouraged me to save money, money to prepare for the future.
Much of my dealings with money, & finances I learned on my own. I don’t necessarily blame my parents, my parents struggled, and mostly was just getting by on the little resources that they had. When my mother passed away some years ago, I was left with nothing except photos and memories. No home/ real estate to inherit, no life insurance, no money, business, no stock investment portfolio, not even a library of informational books.
These factors did not make me love my mother/father any less. Once I had my own child I began to think about these things, not only for my child, but black people in general. In Dr. Amos Wilson’s book: Blueprint For Black Power {Pg 589} he talks about the buying power of black people from the year 1990-1995. It talks about the projected buying power will rise from $298 billion in 1990, to $399 billion in 1995. That’s 101 billion dollars additional, in a five year span. (Amos N Wilson, Blueprint for Black Power, 1998)
According to an article on blackentrepreneur.com. It states “despite historically high unemployment rates, blacks have shown resiliency in their ability to preserve as consumers”. (Black Buying Power To Reach $1.3 Trillion By 2017, 2015)
It amazes me how our people spend this much on things yet we don’t teach our children about how to build wealth.
Real estate is one of the most historic, great pieces of resource one can have in this country. When black people inherit real estate from their parents, or grandparents; if they’re lucky. Our people are quick to sell it, to cash out, to the European man/woman. Who is going to take that property, then add to their portfolio. Some people’s parents or relatives work years to pay off those homes, only to turn around and sell them is nonsensical.
What happens to the money? You buy a new car that will only lose value, every day/ mile? Maybe buy some new designer clothes to impress someone just as broke as yourself?
When I look at generational wealth, I think how; I want my child to be a competitor. I want her to be able to look at the world, then see endless possibilities.
One of the things black people should strive to do is build a library of personal books and resources for personal development, that can be passed down to generations. Leave the fiction stuff alone; If knowledge is true power then you’ll understand the necessity of building personal libraries to pass down.
Start teaching children young, the importance of owning real estate. How it can be used to generate income, and even used as collateral to purchase more real estate. Start investing long term into stocks, and diversify your income. According to Dr. Boyce Watkins, historically anyone who has held their stocks for at least 10 years has seen significant growth on their portfolio. Dr. Watkins borrowed Warren Buffet’s philosophy of investing.
Black people also need invest in good insurance policies, it’s damn near a disgrace to see Black People trying to gather up donations; to bury loved ones. Also encouraging our children, and youth to be entrepreneurs. As a teenager my father use to say, go to college and become a teacher, get a job. Yet my father couldn’t afford to help me pay my way through college.
Black people who are college educated typically are at a financial disadvantage by time they graduate 40, 50, 100k in student debt. Other races/creeds/nations of people have college funds saved up, so that their children have a head start fresh out of college. They also encourage their children to be owners of whatever profession they chose a career in.
If their children are doctor’s or lawyers, they’re encouraging them to open up their own practices. Telling them, be your own boss, generate your own income. Europeans who own their own businesses, are grooming their youth to take over the family business. Black people are still trying to figure out how to write a business plan in 2017.
The paradigm needs to change; our people cannot keep depending on blind faith in mythological gods, while we continue to lose the race. We have to begin to make smart decisions; sacrifices to build generational wealth. And teach our children how to maintain the wealth, for future lineage.
This is no different then what the Walton family (Walmart) is teaching their children. The Mellon family (Banking), Busch family (Anheuser Busch), Cox family (Media), Rockefeller family (Oil), I hope you get the point!
Wealthy people like Jay-Z and Beyonce are not setting their children up to work for someone else. They’re setting their children up to be the Boss. And once they’re long gone, their great grand children will reap the benefits of the generational wealth that’s been handed down to them.
Until next time these are my thoughts, and I hope you enjoyed reading them.
Peace
Khufu.
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