Many in the West have changed their minds. Global Economy is a time when we all need to know and understand. For many families in the western hemisphere this is a strange idea but, if you look at the eastern parts of the world you will find examples of the wealth of this century and not just events.
The simplest definition of any kind of wealth is ‘the transfer of sustainable wealth, which is essential for future generations’.
Here are 3 tips on how to create, build, and protect your family’s finances.
Tip # 1 – Make Yourself Rich In Something That Saves Or Adds Cost
Material goods such as land, art, and gold, imported are more valuable than riskier paper such as stocks and bonds. Of course, stocks can do well for a while; stocks, bonds, and currencies all affect the claims of another person. Any paper currency in world history has ultimately proved to be worthless and there is no reason to trust those who are leading the money today: the US dollar, the euro, or the yen will be different.
In theory, the value of land, art, and gold, is of paramount importance. It costs enough to buy on a daily basis but, in this case there are no producers who can suddenly make your place or turn your gold into confetti.
Tip # 2 – To Protect Generation, Do Not Divide
Different personalities have different economic concepts. Usually, when a mother and father die, their property is distributed among the children. When family property is distributed to each child, they have the power to play their part as they wish, but in many cases the income of women and men is not inherited and the economy changes.
When these assets are unstable and managed as if they were a company, families will see their assets differently and will not hesitate to make $ 5 million. As wealth goes on for generations, each generation does not see wealth as “theirs” but sees itself as the protector of something bigger.
Tip # 3 – Promoting the Idea of “Wealth” The Next Generation
When you find your wealth (or are making it) talk to your children about how you made it; the reason you made it; and what you want to do with it as soon as you submit. Also, consider delaying the transfer of assets until you are in your 30s. This allows children to do better instead of being free.
Negotiations between the heirs and the heirs (children) should take place regularly at the table. This also allows you to have the opportunity to “assess” whether they are eligible to further your financial or not.
Modern economics is essential for educating yourself on how to design, build and protect your assets. If you do well, you too can enjoy the fruits of your labor.