According to Credit Suisse Research Institute’s Global Wealth Report for 2019, global wealth stands at USD 360 trillion and wealth per adult is at USD 70,850. Yet, out of about 7 plus billion people out there, there are only about 47 million millionaires worldwide! And, about 57% or 2.9 billion people worldwide have less than USD 10K!!
According to the same Global Wealth Report, the world’s richest 1 percent, those with more than USD 1 million, own 44 percent of the world’s wealth. Their data also shows that adults with less than USD 10,000 in wealth make up 56.6 percent of the world’s population but hold less than 2 percent of global wealth! Individuals owning over USD 100,000 in assets make up less than 11 percent of the global population but own 82.8 percent of global wealth. Credit Suisse defines “wealth” as the value of a household’s financial assets plus real assets (principally housing), minus their debts.
Generational wealth is not just about old money or the unfathomable amounts being created and safeguarded as family money to pass down as inheritances. You can create generational wealth too, to provide for comforts and opportunities that you seek for your family, so they may leverage to expand their horizons.
The best use of wealth is to gain freedom, to do what you desire and to allow yourself the opportunities that not many have. Its the result of hard work, discipline and diligent financial management.
A considerable amount of foresight goes into building wealth, let alone generational wealth. It requires you to learn what you are not taught in academic settings, but learn through the hard knocks school of life. Learning to make money is one thing, to keep it is a totally different ball game!
When you ask someone as to how to build generational wealth or for that matter earn more than you currently do, they will talk about finding a better career option, climbing up the ladder, generating passive income, investing in the stock market, real estate, deposits into accounts earning interests, building a business and so on.
Planning is a key aspect of generating an income, investing and growing it. You do not have to be wealthy to generate wealth. You just need to learn the smarts.