Today, more and more people long to create a legacy for their families but are unsure how to begin. Every parent has a goal to give their kids a better life than what they had as children but are often stuck in the paycheck to paycheck cycle and just making ends meet. But that doesn’t have to be your legacy. Last week we discussed the beginning steps to building generational wealth. This week we are going to discuss how entrepreneurship and estate planning are the keys to leaving a legacy you will be proud of.
Become an Entrepreneur.
Women sometimes sell themselves short and remain in jobs they hate simply because it’s easier to collect a paycheck. Becoming a successful entrepreneur is a surefire way to build wealth. Today women should not be interested in convincing corporate America to pay them what they are worth when you have the skills to build your own empire.
Use Your Job as a stepping stone.
Whether you are an administrative assistant, financial wiz, or a customer service extraordinaire, you can use these skills to transition into becoming an entrepreneur. Most companies also offer courses to increase your job knowledge which will help you succeed when you do decide to branch out on your own. You can also use your steady income to build a cash cushion and raise capital to start your new business.
Do what works by joining a franchise.
Not interested in creating a business or marketing plan? Consider starting a franchise. Some franchise fees start as low as $5000. Because of past success, you will find it’s easier to secure a small business loan. Just remember to do your research to determine your best option.
Position yourself to borrow.
Maintaining a good credit score is important if you want to become an entrepreneur. You’ll also want to have cash savings to prove to the bank you are financially responsible and have the means to pay back what was borrowed.
Transfer your wealth through estate planning.
My background in insurance taught me just how many people are uncomfortable with this phase of planning. But this is one of the most important if not the most important conversation you should have with yourself and loved ones.
Even if you aren’t a millionaire, it’s important to protect what assets you do have. If you don’t have an estate, you may not be happy with what happens with your assets. Every state has different laws governing how your estate will be divided. Ensure your families future by planning accordingly.
Put your documents in a safe place.
Once your will is created, make sure its stored in an easily accessible place. Make sure also have a healthcare and financial power of attorney to make health and financial decisions should you become incapacitated.
Choose your beneficiaries wisely.
Choosing who to leave your life insurance, retirement benefits to is no small decision. Be sure it’s someone who will carry out your final wishes and who will continue to build your legacy. Remember to change names and life happens, marriage and childbirth for example.
Always Seek Professional Help.
It’s important to educate yourself when building a solid financial foundation. Don’t be afraid to ask for help with money management. You don’t want to lose any property by failing to pay the appropriate taxes.
Building wealth and transferring to the future generation requires strategic planning. Many of us don’t grow up with college or trust funds so it’s important to create a wealth building mindset that will set the next generation up for financial success.