Generational wealth planning is far more than leaving your children a monetary inheritance. It involves teaching the next generation how to steward and multiply their inheritance after they receive it. Generational wealth IS the financial assets, investments, and resources passed down from generation to generation. IT IS ALSO creating a lasting, godly legacy that benefits your descendants and allows them to thrive. Legacy thinking happens when you are laboring for yourself, for the generations present and the generations to come.
The benevolent man leaves an inheritance that endures to his children’s children, but the wealth of the wicked is treasured up for the righteous. Proverbs 13:22 TPT
Generational wealth is less about a multimillion-dollar investment portfolio and more about HOW you pass down a lasting legacy through wise financial habits, training in stewardship and possibly transferring a thriving business. With no training, statistics show that an inheritance passed down in cash and liquid assets will be gone within 2 generations. Are you aware that 70% of wealthy families lose their wealth by the next generation, with 90% losing it the generation after that? The key to generational wealth planning is passing down appreciating, income-producing assets and teaching your heirs how to steward those assets well.
Here are 7 Practical Keys to Generational Wealth Planning
1. Decide as a family what you want to do, the results you want to see, and the impact you want to have.
Then the Lord answered me and said: “Write the vision And make it plain on tablets, That he may run who reads it. Habakkuk 2:2 NKJV
Generational wealth planning empowers you to care for the people you love the most, by looking at the things each family member values (education, working together, debt-free home). Get with your family at various stages in life and ask the long-term questions that will shape your present strategies. Generational wealth offers financial security to your descendants, which reduces their stress and dependence on external sources. God works through generations, and he created your lineage. He doesn’t just see you—He sees the biological and spiritual children you will influence throughout your life.
Related Post: What is Generational Wealth and How Do You Build It
2. Actively partner with God. He wants to give you insight on how to succeed and He wants to be part of everything you are doing.
If you need wisdom, ask our generous God, and he will give it to you. He will not rebuke you for asking. James 1:5 NLT
Before you do anything, put your trust totally in God and not in yourself. Then every plan you make will succeed. Proverbs 16:3 TPT
Set clear financial goals and create a budget that aligns with your values and long-term vision for your family. Bring God into every conversation and decision. Everything we have belongs to God, and we are stewards of His resources. Practice responsible stewardship by managing your finances with integrity. Tithe, give first fruits offerings, and ask God to show you His will for your finances in any given season. He is not hiding valuable information from you. Ask and He will show you. He is the best business partner you will ever find.
3. Be confident that you will create a profitable and lasting business. Trust God in everything.
Remember that God, your God, gave you the strength to produce all this wealth so as to confirm the covenant that he promised to your ancestors—as it is today. Deuteronomy 8:18 MSG
We recommend building generational wealth through real estate. Having a strong mix of appreciating, income-producing assets like dividend stocks, real estate, and businesses will ensure long-term growth. Seek advice from Christian financial advisors and coaches who share your values. Do your homework to avoid investments and banking institutions that may be contributing to anti-biblical causes. God’s promises include wealth, favor, land, descendants, health, righteousness and more. He is FOR you and though life will have ups and downs, nothing coming against you will succeed.
Related Webinar: Leave a Lasting Legacy
4. Do not get discouraged, and stay clear of naysayers. Surround yourself with encouragers.
Don’t put your confidence in powerful people; there is no help for you there. But joyful are those who have the God of Israel as their helper, whose hope is in the Lord their God. Psalms 146:3,5 NLT
Your vision and longing to leave a lasting legacy is a part of your DNA. Thankfully, scripture gives us a blueprint for generational wealth planning. Biblical wealth building is contrary to the popular culture of get rich quick schemes. The scriptural blueprint encompasses honor in both how you earn it and how you use it. It also includes patience, as there is a time to sow and a time to reap. Get into a community who will encourage you in godliness and will walk with you when your confidence is failing. You want people around who remind you that the process is as important as the end goal.
Related Post: 10 Tenets of Biblical Generational Wealth
5. Never give up, never. God is faithful!
Plant your seed in the morning and keep busy all afternoon, for you don’t know if profit will come from one activity or another—or maybe both. Ecclesiastes 11:6 NLT
A Kingdom Mindset is crucial for building generational wealth. Our salvation isn’t just a ticket to Heaven, and our wealth is more than a safety net. Generational wealth is best put to use when it’s actively engaged in Kingdom activities. The main purpose of making money is to make a difference! Use your finances to further the Kingdom of God by giving generously and choosing biblically responsible investments. Teach your family the importance of giving back to the community and supporting those in need. Your Kingdom mindset will be your constant reminder that God is faithful and He will accomplish what He says He will do.
Related Post: Kingdom Impact Investing
Triple X Factor provides details on how to reinvest passive income into Kingdom causes. Here are some ways to continue your generational wealth planning with a Kingdom mindset:
• Engaging in biblically-responsible and pro values investing
• Kingdom Impact Investing
• Starting businesses and nonprofits
• Purchasing and using real estate to bless other
6. Encourage, model and teach your children at a young age the key biblical principles for success.
Dedicate your children to God and point them in the way that they should go, and the values they’ve learned from you will be with them for life. Proverbs 22:6 TPT
One of the most essential components of generational wealth planning is encouraging, modeling, and teaching the next generation about finances. Educate your children and grandchildren about money management, budgeting, investing, stewardship, tithing and giving. Share financial books, courses, and podcasts with them, and attend financial events with them to expand their perspective. When you are building generational wealth through real estate, take your children with you. Let your children see what you are doing for their benefit, as well as showing them the long game first hand. Parenting is discipleship and many times is very similar to having life-long interns. Watch me do it, do it with me, I’ll watch you do it. It’s never too early or too late to include them in the major areas of your life.
7. Encouragement is valuable but your kids need you to actively invest in their future.
Beloved children, our love can’t be an abstract theory we only talk about, but a way of life demonstrated through our loving deeds. 1 John 3:18 TPT
When your child or grandchild approaches you with an idea which needs funding, like a business, don’t simply give them words of encouragement. Generational wealth planning means you put your money, time and knowledge “where your mouth is” and invest in your heirs. Also, start estate planning as soon as possible. Create a comprehensive estate plan that includes wills, trusts, and directives, ensuring a smooth transition of assets and values to the next generation.
The God of Abraham, Isaac and Jacob is a God of generations. He believes in you, and those who came before you and those who will come after you. He has made provision for you and your children and your children’s children. His provision is a legacy straight from His heart to see His Kingdom come in your family. Partner with Him to leave a legacy of blessing for your heirs.
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