5 Crucial Tactics For Crafting a Wealth Building Mindset and Securing Generational Wealth

BY: - 22 Feb '18 | Money

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Shifting your money mindset from spending to building wealth is the cornerstone of any wealth-building plan. Achieving this mindset begins with adjusting your overall approach to spending and your overall relationship with consumerism. In addition to the great suggestions offered in the video below, here are five ways you can craft a wealth building mindset and create generational wealth.

A wealth-building mindset means eliminating “the “Joneses from your vocabulary.

Keeping tabs on the Joneses is so easy with the popularity of social media. If you suffer from a case of the Joneses, you may find yourself constantly comparing what you have with what others have. So instead of being happy for a friend when he purchases a new home, a new car, or new clothes, you somehow feel inadequate and insecure. This sense of inadequacy and insecurity leads you to buy what he has just so you can fit in, despite your inability to afford it, causing you deep financial issues.

The irony of keeping up with the Joneses is that in many cases the Joneses can’t even keep up with themselves. In other words, the people who we are so busy trying to be like, the people who we assume have it all in the way of wealth and power are actually living a lie. Just like you, they are buying an image. You never really know how people obtain what they have, and honestly, that shouldn’t really be your concern.

A wealth-building mindset means understanding you can’t buy your self-worth from historically racist institutions.

Since our arrival to America as chattel, black folk have been (rightfully) bitter spectators as we watched our white counterparts exploit our labor and talent and deliberately and systematically block our attempts to break through to the middle class, garner access to quality education, and afford the occasional luxury. Our status as second-class citizens has given us a collective chip on our shoulder when it comes to buying.

Sometimes we spend as proof that we are just as successful as white folk. Sometimes we buy items just because white people have bought them. In essence, we consume conspicuously to show that if our money is just as good, we must be just as good. The truth about self-worth and net worth is that our self-worth is more likely to increase based on how much we save, not how much we spend on things that don’t appreciate in value.

A wealth-building mindset means redefining what “the good life” and “wealth” mean to you.

What is your personal definition of wealth? It may not be what the media is pumping you via reality shows like Real Housewives of Atlanta, Cribs, or Love and Hip-Hop. Wealth may include money. But it also includes love, friendship, community involvement, peace, free time, and creativity—all of which provide a sense of completeness and centeredness that is priceless.

A wealth-building mindset means distinguishing between what you want and what you need.

The survival of a capitalist economy relies on high levels of consumption. Newspapers, magazines, television, and radio bombard consumers with images of products, services, and goods in an effort to convince you that you need what they’re selling. Essentially, the media attempts to reprogram the average consumer to believe that material items will make them complete and at peace. But it’s up to you to distinguish between what you need and what you want.

This is not to say that you shouldn’t splurge or buy things that you like. It’s okay to splurge, once in a while, on something you don’t really need, but you shouldn’t make a habit of it. And when you do splurge, you should be conscious that your life would be just as good without that thing.

A wealth-building mindset means focusing on being grateful for what you already have.

Instead of complaining about what isn’t working and what has yet to come, try cultivating an attitude of gratefulness. Being grateful is like a muscle. When you train yourself to be grateful for the little or the simple, you’re preparing yourself to both attract and appreciate the greater and the grander.

Click Here to Download a FREE Copy of the BMWK Generational Wealth Pledge for Black Families!

It should not take a financial disaster to make us appreciative of what we have. But sometimes it does. Learn to be grateful now. Learn to be appreciative that you can pay your rent and car note and have enough left over for some savings.

A wealth-building mindset means educating yourself on wealth.

Building a deep understanding about the wealth-freedom connection means investing in educating yourself about personal finance, whether through buying a book, following a blog, speaking with a financial mentor, or enlisting support and accountability from a community of wealth-minded friends.

BMWK: Check out the amazing Webinar below where BMWK Creators and Founders Ronnie and Lamar Tyler bring some real talk to generational wealth creation in the African American community and securing our financial well being and legacy for years to come.

About the author

Kara Stevens wrote 150 articles on this blog.

Kara is a motivational speaker, life coach, and founder of the personal finance and lifestyle blog The Frugal Feminista .

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5 Estate Planning Moves You Must Make to Leave a Legacy For Your Family

BY: - 16 Mar '18 | Money

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Recently, I got off the phone with my mom, who shared some family updates— the on-goings of our family in the States, Antigua, and Tobago. Most of the news was positive; one piece wasn’t so positive, though. I learned that a family member was at the beginning stages of a debilitating mental and physical illness.

When I hear about illness, I can’t help but think about death. And when I think about death, I can’t help but think about estate planning. I hope that my older and not-so-healthy family members have their affairs in order. Hearing news like this reminds me that I need to take care of my affairs while I have youth and health on my side. In other words, I realized that I needed to get on the ball about estate planning.

Estate planning is the collection of preparation tasks that serve to manage an individual’s asset base in the event of his or her incapacitation or death, including the bequest of assets to heirs and the settlement of estate taxes. Most estate plans are set up with the help of an attorney experienced in estate law.

Despite the images that movies and television promote, estate planning isn’t exclusively for the wealthy or the old. We all need clear guidelines, orders, and plans for when we die or in case we become disabled, no matter our income level or the value of our estate. And the sooner you start getting your estate affairs in order, the more peace of mind you will have, the less confusion there will be, and the higher the chances that generational wealth will be passed down to the intended recipients with less contention and drama. When you sit with an experienced estate-planning attorney, please ensure that you plan to complete the following major estate-planning tasks.

Draft a will or testament, which is a legal declaration by which a person names one or more persons to manage his estate and provides for the distribution of his property at death. Limit estate taxes by setting up trust accounts in the name of beneficiaries, who are the individuals designated as the recipients of funds or other property under a will, trust, or insurance policy.

Establish a guardian for your dependents and make sure the individual or couple you choose shares your views, is financially sound, and is genuinely willing to raise children. As with all designations, a backup or contingent individual or family should be named as well. Absent these designations, a court could become involved and could rule that your children live with a family member that you wouldn’t have approved of. In extreme cases, the court could mandate that your children become wards of the state.

Name an executor of the estate to oversee the terms of the will. An executor is defined as the person named to distribute a deceased person’s property that passes under his or her will and who arranges for the payment of debts and expenses. Some of the other responsibilities of the executor may include, but are not limited to, getting a copy of the will and filing it with the local probate court; notifying banks, credit card companies, and government agencies like the Social Security Administration of the decedent’s death; setting up a bank account for incoming funds and to pay any ongoing bills; filing an inventory of the estate’s assets with the court; maintaining property until it can be distributed or sold; paying the estate’s debts and taxes; distributing assets; disposing of other property; and representing the estate in court, if necessary.

Create or update beneficiaries on plans, as a number of your possessions can pass to your heirs without being dictated in the will. A 401k is an example of this. In fact, all retirement accounts and insurance plans should contain a beneficiary and a contingent beneficiary because they typically pass outside of a will.

Set up a durable power of attorney (POA) to direct other assets and investments. It’s important to draft a durable power of attorney (POA) so that an agent or a person you assign will act on your behalf in the event of your disability. Without a power of attorney, a court may be left to decide what happens to your assets if you are found to be mentally incompetent. The court’s decision may not be
what you wanted.

Click Here to Download a FREE Copy of the BMWK Generational Wealth Pledge for Black Families!

Finally, be prepared to take immediate action to alter your estate plans as changes and shifts to your assets and relationships occur.

BMWK, are you prepared to leave a legacy for your family?

About the author

Kara Stevens wrote 150 articles on this blog.

Kara is a motivational speaker, life coach, and founder of the personal finance and lifestyle blog The Frugal Feminista .

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