It’s possible that having a strong set of values in your family will result in more money for you and your relatives. Hard effort, personal ambition, and family values are constantly cited by the wealthy as the causes of their success. When parents teach good – yet firm – family values in their children, there is a potential of financial success, regardless of the family’s income or social class. Perhaps this is due to the fact that strong family values can foster wealth-building financial behaviors. On the other side, poor family values can spawn undesirable habits, which might lead to financial difficulties down the road. It’s crucial to remember that just as good financial habits can be passed down through generations, so can bad ones. Financial habits and family values can be passed down over generations, with each generation strengthening the previous generation’s attitudes and practises. According to the Wall Street Journal, two economists discovered that the wealthiest family in Florence, Italy now are descended from the wealthiest Florence families approximately 600 years ago, which Hatch also mentioned.
While it would be absurd to claim that these families have kept their wealth merely because they instilled great family values in their children, it is worth noting that they most certainly inherited more than money. Many people learn the value of money – as well as other critical financial skills – from grandparents who may have received those beliefs or practices from their grandparents. Every family, especially those that desire to be wealthy, might benefit from a strong set of family values. Consider embracing these seven family principles if you want to secure financial success for your children and even future great-great-great grandkids. Many families believe it is impolite to discuss money openly and honestly.
People would rather get a root canal than discuss money or their financial problems publicly. If you asked ten of your friends how much money their parents made or how much money their parents had in their 401k, the vast majority would say they had no idea. However, some families that desire to pass on their riches to their heirs may face terrible consequences if they are not honest and truthful. The Williams Group, which helps families keep control of their assets and maintain family peace during estate transfers, discovered that 70 percent of successful families lose control of their assets and fail to pass down their fortune from generation to generation during a 20-year period. The single most crucial obstacles that stymie successful family wealth transfer are a lack of trust and communication.
If you want future generations to inherit the family fortune, you and your family members should begin openly and honestly discussing money. Being thrifty is an important aspect of building wealth and conserving money. Your family may establish a big savings nest egg by educating your children and family members how to be thrifty and live within their means, which could one day turn into a large family wealth. Frugality educates family members and children how to avoid circumstances that can lead to financial ruin. People who are frugal, for example, stick to their budgets and won’t use their credit cards to buy things they can’t afford. They’re avoiding credit card interest, which may eat into their hard-earned earnings, by keeping the plastic in their pockets.
You can only do so much on your own when it comes to money. Recognizing this constraint, rich people frequently form teams to provide financial assistance and counsel. They know that it is difficult to be completely impartial when making financial decisions because money is frequently a very emotional topic. Similarly, financially successful families recognize that in order to turn their income into wealth, they must work together.
If you want to get rich, expanding your means is just as crucial as living below them. However, extending your resources frequently necessitates a lot of effort. Expanding your means can include beginning a part-time business or learning a new, marketable talent that can lead to increased wages, according to author Tom Corley in his book “Rich Kids: How to Raise Our Children to Be Happy and Successful in Life.” Have your children accomplish chores in exchange for an allowance to instill this family value in them. Encourage children to take on employment outside the house if they’re old enough. Because acquiring new money-making talents takes time, start teaching your kids when they’re young so they have more time to accumulate riches.