Generational Wealth: Creating, Growing, and Passing It On

Step 1: Create Value

Generational wealth starts with creation. You create value by bringing something of value into the market place, this can be a service, a product, or even a skill.

Adding value to an existing system is good, but creating value is what builds wealth. In the words of Adam Smith, “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.” Think of the butcher, the brewer, or the baker. They don’t provide food out of kindness; they do it because it sustains them. We willingly pay for that value. The lesson? Shift from a consumer mindset to a creator mindset.

You don’t need to build a massive company to create wealth. Start small: craft a product, share your expertise, or build something meaningful. Even if it begins as personal—like a handmade blanket or a carved chair—it can one day become a legacy treasured by your descendants.

Step 2: Monetize Your Value

Value becomes wealth when others are willing to pay for it. You might already be creating value; the next step is finding your audience, which is finding the market for what you are offering.

Some people create just enough to sustain themselves and their families. Others expand their scope, scaling up into larger businesses or investments. The principle is the same: create, then monetize.

Ask yourself, "Is what I create valuable enough for me? Would I pay for it?" If the answer is yes, chances are someone else will too.

Step 3: Grow and Retain Wealth

Wealth is more than money—it’s net worth, calculated as:

Net Worth = Assets – Liabilities

To grow wealth, focus on increasing assets while minimizing liabilities. If liabilities outweigh assets, you’re left with nothing to pass on but debt.

Modern economies thrive on debt—loans, credit cards, mortgages. Used wisely, debt can help you acquire assets. But over-reliance on debt can hold you back. Prioritize owning real, valuable assets—things you can pass on or convert to cash when needed.

Step 4: Pass It On

Creating wealth is only half the journey. The other half is ensuring it survives you. Wealth must be “transported” to future generations through a vehicle—investment funds, trusts, or collective schemes designed to preserve and grow assets over time.

The key is intentional planning. Without a clear structure, wealth can disappear in a single generation. With the right vehicles, it can sustain your family for decades.

The Bigger Picture

At our core, humans are hunters and gatherers with goals. Without goals, there’s no future. Generational wealth is about aiming higher—not just for yourself, but for the people who come after you.

So start where you are:

• Create value.

• Monetize it.

• Grow it wisely.

• Protect it for the next generation.

Leave your mark. Build something that speaks for you long after you’re gone.