Building generational wealth is a lifelong journey that can start at any age. Whether you are a teenager just beginning to learn about finances or a retiree looking to secure your financial future, there are steps you can take to build wealth. As a Christian, you can infuse these principles with biblical wisdom to guide your financial journey. Remember, everyone’s financial journey is unique, so use these ideas as inspiration on how to build wealth rather than a basis for financial comparison.
How to Build Wealth in Your Teens:
Your teenage years are an excellent time to start developing good financial habits. Here are some steps to consider:
1. Get a Part-Time Job: Earning your own money at a young age can teach you valuable financial lessons (plus, it’s fun to have your own money to spend!) When you turn 16, do everything you can to fit a part-time job into your schedule.
If you don’t have a car, find somewhere you can walk to. If you are busy with school and sports, choose a job that does not require a scheduling manager, such as babysitting or mowing lawns. The goal is to start making your own cash as soon as possible.
2. Tithe, Save, and Invest: Allocate the majority of your income towards tithing, saving, and investing for your future. The sooner you get this, the more wise and blessed you will be!
3. Start Investing in a Roth IRA: Before you turn 18, ask your parents to contribute to a Roth IRA for you. The money will grow tax-free over time, and when it comes to investing, age is on your side. For example, a fourteen-year-old who contributes $200 every month to a Roth IRA can retire with over a million dollars at age 55! (At an expected rate of return of 10 percent)
How to Build Wealth in Your 20s:
Your 20s are a time for learning and building a solid financial foundation. Take some risks and establish good financial practices:
1. Live Within Your Means: Avoid accumulating unnecessary debt and learn to budget wisely. Proverbs 21:5 reminds us that diligent planning leads to prosperity.
2. Invest in Yourself: Consider furthering your education or developing valuable skills to increase your earning potential.
3. Establish Strong Credit: Good credit is essential for getting the best rates on mortgages and other loans you may need to build wealth.
4. Build an Emergency Fund: Aim to save enough to cover 3-6 months’ worth of living expenses.
5. Continue Investing in a Roth IRA: Keep contributing to your Roth IRA and take advantage of compound interest.
How to Build Wealth in Your 30s:
Your 30s are a time to get more serious about your financial goals. Here are some steps to implement:
1. If You Have Not Yet, Prioritize Debt Repayment: Pay off any outstanding debts to reduce financial burdens. Proverbs 22:7 reminds us that the borrower is a slave to the lender.
2. Increase Savings and Investments: As your income grows, allocate a higher percentage toward savings, investments, and giving. Start thinking about how you can use your money to make a difference in your family, community, and beyond.
3. Diversify Investments: Spread your investments across stocks, bonds, and real estate to minimize risk and maximize returns.
4. Utilize Home Equity: Buy your first home or consider using the equity from your first home to purchase rental properties for additional income.
How to Build Wealth in Your 40s:
In your 40s, it’s time to reassess your goals and make necessary adjustments:
1. Reevaluate Your Career: Maximize your earning potential and explore entrepreneurial opportunities. Seek God’s guidance in your career choices (Proverbs 3:6).
2. Max Out Retirement Contributions: If your employer offers retirement contributions, take full advantage of them. Proverbs 13:22 reminds us of the importance of leaving an inheritance for our children’s children.
3. Review and Adjust Investments: Continually monitor and adjust your investment portfolio to align with your financial goals.
4. Scale Your Real Estate Portfolio: Use equity from existing properties to expand your real estate investments.
How to Build Wealth in Your 50s:
While there’s no one-size-fits-all approach for building wealth in your 50s and beyond, consider the following ideas:
1. Continue Investing: Don’t hesitate to invest in property or other opportunities as you get older. Seek wisdom from God in your financial decisions (James 1:5). As your income increases, consider Kingdom Impact, Pro-Values, and biblically responsible investments.
2. Consult a Financial Advisor: Seek professional advice to ensure your financial strategy aligns with your retirement goals.
3. Explore Different Passive Income Sources: Look into generating passive income streams, such as dividend stocks or rental properties.
4. Update Your Estate Plan: It is time to really start thinking about generational wealth. Ensure your assets are distributed as per your wishes by reviewing and updating your estate plan.
How to Build Wealth in Your 60s and Beyond:
You are never too old to start building wealth. In your 60s and beyond, it’s essential to focus on securing your financial future while also considering your legacy:
1. Keep Investing, Taking Risks, and Trying New Things as the Lord Leads.
2. Estate Planning: Consult an estate planning expert to create a will, trust, and other documents that align with your Christian values and distribute your wealth according to your wishes.
3. Generosity: Consider how you can use your wealth to make a positive impact on your community and support charitable causes (2 Corinthians 9:7).
4. Teach the Next Generation: One of the most important components of leaving an inheritance is ensuring that your beneficiaries know how to steward it. Take the next generation under your wing and show them how to build and maintain wealth.
5. Spiritual Wealth: Remember that true wealth extends beyond material possessions. Seek spiritual growth and a deeper relationship with God throughout your golden years, and pass that on to your loved ones.
Building wealth is a lifelong journey, and with faith-based principles, you can navigate each stage of life with purpose and integrity. Whether you are just starting out or enjoying your retirement years, these steps can help you achieve financial security while honoring your Christian beliefs. Remember to pray for wisdom and guidance in your financial decisions and trust in God’s provision (Philippians 4:19).
If you want to learn more about how to build wealth from a Christian worldview, there is no greater place than at The 2024 WealthBuilders Conference. Join us February 16-18 in Denver, Colorado, or online to receive divine financial direction and learn more about how to build wealth from real estate, investing, and business. Click here to learn more about and register for The 2024 WealthBuilders Conference.