March 06, 2021
Wealth is defined as any asset or things financial and human that can produce more income for a family. True wealth is measured in things that can stand the test of time. True wealth is the ability of a family to produce income on an on-going basis.
There are two ways to enlarge wealth in a family: (a) develop certain abilities to grow wealth on a consistent basis. (b) Manage the load of dependent family members. The wealth creator has two responsibilities: 1. Prepare foe succession and 2. Hand over to the successor at the right time.
The successor has two responsibilities (a) Acquire and master the skills and abilities to expand wealth (b) He must receive the baton of leadership and lead the family business to greater heights.
To do these, he must develop three skills (a) Critical thinking skills (b) Creative skills and (c) Marketing skills. He must have the ability to generate profitable ideas from an intelligent collection of thoughts, create valuable products and services from his ideas and then exchange these ideas for cash.
A family must also have a business diversification strategy as well as principles / agreed-to investing and income generation plans.
Having grasped these lessons, one must know the rules of wealth and be committed to observing them.
According to Richard Templar’s best-selling book “The Rules of Wealth” there are about 107 rules regarding wealth. Rule 106 states that “once you,ve got it, don’t flaunt it” These are further broken to 10 Wealth No Nos.
No flash cars
No castles, ranches etc
No glitz or showing off
No impulse spending
No wild animals as pets
No buying Islands
No private jets
No huge diamonds
No flying your family and friends to foreign country for a party.
It is also very important to add the 11th rule;
No addictions. (drugs, alcohol) Remember John Pemberton ( Coca Cola story) His family almost lost the legacy of a 74 billion dollar brand.
Just as it applies in most rules, though, there are exceptions. My role model when it comes to the nitty gritty of this subject, is Warren Buffet.
One must give credit to and acknowledge the sources of the lessons in generational wealth. First is Mrs. Grace Agada Author of the book Solid Wealth. She is a generational wealth advisor, Legacy Expert, consultant and Coach. Her email is firstname.lastname@example.org