By Contributing Writer James L. Marshall, Jr., Financial Advisor, Financial Educator & Author
One you choose, one you are born into, and the other you earn (well most of us have to earn it).
First is faith.
Faith is the assurance that the things revealed and promised in the Word are true, even though unseen, and gives the believer a conviction that he expects in faith, will come to pass. In other words: “Now faith is the substance of things hoped for, the evidence of things not seen.” – Hebrews 11:1
Throughout your wealth-building journey, you will come across obstacles that seem insurmountable; barriers that appear to be too high to climb.
For example:
- Job loss
- Loan denials
- Unexpected bills
- Health problems
- Accidents
These barriers will come when you are tired and discouraged and when your level of discouragement is high and your will is low. You may begin to look at what others have or appear to have and wonder:
- What is wrong with me?
- Why can’t I get out of debt?
- Why can’t I build up savings?
- When will I stop living paycheck to paycheck?
The Brookings Institute’s Hamilton Project found in their 2019 Survey of Consumer Finances that the wealth gap between Black and white households is staggering. Their research reveals that the median household net worth for Black families is $24,100 versus $188,200 for white households.
To me, this is as the saying goes, “same story, different day.”
I can understand how this type of report and all the media discussion about it can be overwhelming. And it is during this period of uncertainty that you can fall victim to schemes, cons, and empty promises. Well, at this time, I suggest you just stand still for a minute and evaluate your situation.
What is really happening? What is the real problem that is hindering your progress at this moment? Some questions to ask:
- Is it unemployment or under-employment?
- Is it cash flow management? Are you spending more than you are making?
- Is your lack of savings leading to your increasing debt?
“You don’t have enough faith,” Jesus told them. “I tell you the truth, if you had faith even as small as a mustard seed, you could say to this mountain, ‘Move from here to there,’ and it would move. Nothing would be impossible.”
Matthew 17:20
Second is family.
No man is an island. And no one gets there alone. The phrase, “It takes a village,” is certainly overused and underutilized. Just remember that at the center of that village is a single-family, traditional, or modern. And building sustainable, generational wealth should involve the entire family.
The leaders of the family are responsible for establishing the process, as well as developing and educating family members to take on various roles in managing and growing the family’s wealth. That means retaining professionals such as a financial advisor, CPA, attorney, and even a therapist.
Every member has a role in the process of building family wealth:
- Contributing
- Managing
- Protecting
- Transferring
Every family member needs to see the big picture and take ownership of the long-term wealth goals of the family.
Establishing a private family bank owned by a family trust makes it perpetual. Funding it with monthly contributions from family members and life insurance proceeds makes it viable.
But if there is no emotional commitment, structure, documentation, or comprehensive financial plan, the efforts will be in vain.
And finally, there is finance.
No matter how hard it has been in the past or how bleak it looks now, just know that every problem has a solution. And the solution is based on commitment, cooperation, organization, and action. Here are some tips:
- Establish the family’s vision of wealth
- Assess the family’s combined income and expenses
- Identify what accounts or funds can be transferred from individual accounts to the family bank, and this should not cause financial hardship to the individuals.
- Setup the family trust and place the ownership of all savings, investments, and insurance policies in the name of the trust.
- Layout the family foundation’s structure such as executive director, secretary, treasurer, committee members, etc.
- Committees should meet at least quarterly, and the whole family should meet annually.
So remember, a journey of a thousand miles begins with one step. Start on your journey of wealth today.
James Marshall is a registered investment advisor registered in Texas and Kentucky. He can be reached at James@Marshallyourmoney.com. Visit him on the web at Marshallyourmoney.com.
