Generational wealth is fast becoming more than a mere hip buzz phrase in these unpredictable economic times. At its most basic level, generational wealth is simply the process involved in passing money and assets from one generation to the next. Why are there certain family names that are readily identifiable as wealthy, like the Rockefellers, for example? The answer is simple: These families have for generations practised wealth planning, which means they have put in place measures to acquire assets and save cash, all of which are passed down to their children and grandchildren over time when the older generation passes away.

That’s all well and good, you may say to yourself, but my family could never become as wealthy as the Rockefellers. But who says it can’t? As a wealth management advisor, I can tell you that with financial discipline, it is entirely possible to have a wealth portfolio. It will not necessarily happen overnight; in fact, it won’t. Forget about get-rich-quick schemes. We’ve all seen the calamitous crash of Ponzi schemes of the last decade. The key is financial discipline and understanding the fundamentals of how money should work for you, and then getting started.

What legacy do you want to leave for your children? Do you want them to simply eke out a living, barely keeping afloat in choppy financial seas they might experience when they become older? Responsible parents or guardians don’t. I know my parents didn’t. Which is why my mother bought my first stock for me when I was a child; a practice she’s done not just for me and my siblings but now, her grandkids as well. You’d be surprised how a simple act like that can set the tone for your family’s lifetime legacy.

How do you get the ball rolling? Firstly, you must nurture a mindset that recognises you have to spend less than you earn. But that’s really a given. Spending more than you earn only leads to debt, which will obviously lead you away from your financial goals. Keep focused on what it is you want to achieve. Sure, there’s that fly outfit you’ve been eyeing at one of your favourite online stores, but to purchase it you’re going to have to put it on your emergency credit card. Hold up, where’s the emergency when you have a closet full of perfectly smashing outfits, some of which still have price tags on them?

The next step on the road to family wealth is becoming financially literate. This simply means not being intimidated by the language of money so that you make bad decisions, like getting caught up in scams or, conversely, allowing opportunities to pass by because of ignorance and fear. Consider employing the services of a financial advisor. Once you have grasped the concepts around investing ensure that you pass on that knowledge to your family members. Wealth cannot multiply or pass through the generations if family members do not understand money. It is one of the major reasons wealth is often lost by the second or third generation.

A critical area for the building of generational wealth is investment. A Jamaican saying my mother instilled in me was: “If yuh want good, yuh nose haffi run.” Nothing that’s good comes without a little dedication and sacrifice, and there are so many areas in which investments can be made. So, whether it’s investing in yourself by furthering your education or investing in stocks, real estate or even insurance (life and health), understand that the funds, in terms of tuition, initial capital outlay or premiums, that you sacrificed to invest in any of these arenas, which could have been spent on other short-term pursuits of pleasure, will reap rewards in the long run.

Starting a business is another viable option for building legacy wealth. Not all family businesses, I will admit, make it to a second or even third generation, but who’s to say yours can’t? Family businesses have so much potential for success, especially if they align with your children’s interests. Get them involved at a very young age so they can understand how it operates and perhaps come to view it as something they will be happy to one day be handed the keys to. Even if the family business is not passed down to another generation, by having your family involved valuable lessons are taught.

Finally, write a will and seek advice in relation to gratuitous transfers, as not everything should be put in a will! Where possible transfer assets to your children while you are still alive, buy property in joint tenancy, and add them to bank accounts. I know death and wills are a sensitive area that many Jamaicans grapple with, stemming from the old superstition that this is a premonition of bad luck. How many times have you heard stories of people of substance, who should know better, dying intestate, leaving their funds tied up for years while family squabbles play out in a dragged-out court case? A will, or, for that matter, even an estate plan for the smooth transition of your assets, can make the difference between preventing the stress of family ugliness and the people you love the most living in near penury during lengthy court proceedings.

Developing a wealth-building strategy to last for generations allows you to secure your family’s future. You may have to reconcile yourself with the fact that you may personally never be able to benefit from this generational wealth ball you’ve set in motion. But that’s OK; your offspring will. And in the end, isn’t that what it’s all about?