Generational wealth is usually referred to as financial wealth that is passed down from one generation to another even though it can take other forms like traditions or heirlooms.
I’m currently in a position where I am trying to build wealth so that I can pass it down wealth from generation to generation. I’ll get into ways to build generational wealth later in the article but first I wanted to get into defining generational wealth…
What Is Generational Wealth?
Generational wealth is acquired by building generational assets which can include real estate, stocks, businesses, and many other types of assets.
In the aspect of financial planning, generational wealth is a term that is geared toward passing down stable, significant financial resources for future generations.
Okay, now that we covered generation wealth, how can one grow it?
How Can I Build Generational Wealth?
To build generational wealth, generally, you need to have an income, whether as a job, career or a business.
Once you have set your earning capacity, then you can adjust your thinking to shift from an income-based mentality to an asset-based one which will help you to create wealth. I published another article recently about growing your wealth here that you may found beneficial.
Basically, you need to have the right mindset and the discipline to stick to your financial goals.
This is not a one-day activity and requires consistent and diligent action, and above all the belief in what you are trying to achieve. It goes without saying that you must spend less than you earn, or top savings skills, so as to have some excess funds for investments.
However, because you want the wealth you are accumulating to last beyond one generation, you also need to empower your children with financial literacy especially budgeting and good money habits and invest in their future by setting up trusts and funds in their names.
Ways You Can Build Generational Wealth
There are many ways in which you can accumulate wealth and it will all depend on your goals and plan of action.
There are four tried and tested steps that you can take to build generational wealth as outlined below
You need a financial advisor. To navigate the complex waters of investing and financial intelligence, you should have a guide who has sufficient knowledge and experience to help you build your investment portfolio affordably. However, before you commit to a financial advisor, you need to have worked out your budget, the time period you have to invest, and clear goals and strategy. Educate yourself by doing online research, attending workshops or finding a mentor so that you have a clear strategy.
Invest in assets. Assets and this refers to stocks, bonds, real estate, commodities, and currency, tend to appreciate over time, though some assets like real estate are more lucrative than others as they bring greater returns than other stock. There are subclasses even within these assets that allow you to build equity that you can then pass onto your children.
Build a tax fortress. You need to protect your wealth from being depleted by taxes or creditors. Look for options that are tax friendly, for example, some retirement accounts are not taxed up to a certain maximum amount. You can open up a Simplified Employee Pension Individual Retirement Account, SEP- IRA, which allows tax-deductible contributions for entrepreneurs and freelancers. The money on this account is not taxable until withdrawal.
Diversify your portfolio. To build generational wealth, not only do you need to have multiple streams of income, but you also need to diversify your investment options so that if one is underperforming, another can cushion the loss. This requires you to constantly review your portfolio and then adjust your strategy accordingly. This also needs you to take on the element of risk as this sometimes means more returns.
Ways I’m Building It
I’m a Millennial, so my way to wealth is through passive or residual income. To get you started, I want to get into what exactly residual income is.
So what exactly is residual income? Residual income refers to the amount of income you generate even after you have provided your product or services.
It is a stream of income you get after your work has been delivered. It’s basically interchangeable with the term passive income.
|For example, writers and artists release a book or a song on a particular day and a particular year but get paid for that piece of work for many years after. The royalties they get paid are their residual incomes.|
Residual incomes are a great way to make money “passively”. This way you can have a source of income to rely on even when other sources of income are spent on bills.
Top Ways To Earn With Mobile Phones
To get you started, here are some of my favorite passive income apps or the best apps to help you earn generational wealth, the money gator way.
1. Earn Money For Watching Youtube Videos
Many of you have come here by searching “make passive income.”
Well, here you go. This has got to be one of the fastest and most legitimate ways to make passive income.
You can actually get paid to watch movie previews, celebrity videos, news and all sorts of other videos.
You can sign up for sites like Swagbucks and Survey Junkie that will pay you to watch certain videos.
They will tell you how many minutes you need to watch the video for and you might also be asked to like the video.
While you not going to make a career out of it, it’s very easy money for pressing a few buttons on your phone in your free time.
There really is no limit when it comes to the question of how to make money online.
You can make around $500 a month by spending 15 minutes a day on surveys.
|Survey Junkie pays you watching videos and also pays between $.50 and $9 per survey, and many of them take less than 5 minutes to complete. Sign up through here.|
|Swagbucks pays you to watch videos, search the web and get cash back for online shopping. It’s similar to Survey Junkie, but there are also a few other ways you can earn money as a member (including a $5 bonus just for signing up).|
2. Let This App Get You Lower Prices
If there ever was a passive income app you should have in your life, it should be Paribus.
Here’s why: I bought Keurig cups online from Target the other week. The price of the Keurig cups I purchased dropped in price, after the fact. I effortlessly got refunded the price difference without doing a thing.
…I didn’t have to do anything, other than originally sign up for Paribus.
This free app will scan your emails for any purchase receipts from dozens of online retailers.
You don’t even have to know about the price drop in order to get your refund.
It’s 100% free and will save you a lot of money.
I pocketed around $50, in the first few weeks of signing up. Remember, it’s 100% free.
Paribus compensates us when you sign up for Paribus using the links we provided.
3. Download a Money Making App for $50 Passively
By using the internet as you do every day, Nielsen invites you to make a difference – and you can make money too.
I downloaded this app and make around $50-100 passively… it’s a legit app.
You don’t have to do anything other than initially registering your computer or phone.
|Nielsen: This company will pay you $50 a year keep their app on your favorite internet browsing device and they also give away $10,000 each month. So you can possibly make more than $100. Sign up through here for a registration bonus.|
4. Invest Your Pocket Change — and Get $5
You can download Acorns for free.
With the app, you’ll start small and stack up change over time with the Acorns “round-up” feature. That means if you spend $15.25 on your connected debit or credit card, for example, 75 cents gets dropped into your Acorns account.
Then the app does the whole investing thing for you. It’s that simple. Now you can brag to your friends, too.
The idea is you won’t miss the digital pocket change — you know, out of sight, out of mind. And those automatic savings stack up faster than you’d think and in no time you’ll become a Saving Junkie.
The app is free to download on the app store or google play, and the service costs $1 a month for balances under $1 million — plus you’ll get that $5 bonus just for starting out. Or you can sign up with your student email and it’s free.
The sooner you start investing, the sooner your money can start to grow toward your goals. Get started with this Acorns bonus today!
5. Build Your Savings Without Trying
Truebill is a real, much better and desirable alternative to all the other money saving apps on the market. With Truebill, they have saved over $15M for its users on their bills (think cable or cell phone bills) and canceling forgotten subscriptions.
Have a cable bill that has been increasing over the years? You can now simply download a free app, and they will negotiate it down for you.
Truebill will help you take control of your money, users have saved over $15M to date, and all without being a financial expert or dealing with staying on top of your bills, which can be a full-time job.
There is a reason why they currently have over 50,000+ users, this app really gets you back free money.
If you’re interested, I recommend you sign up for more information from Truebill by clicking here.
6. Find Out Where You’re Wasting Money
Trim boasts that new users are eligible for up to $30 in cash-back deals as soon as they sign up.
The free app, Trim, saves you money with automation and within a few days, I saved an extra $100 within the first few days.
I simply linked my accounts and Trim went to work. It found ways to lower my bills and cancel subscriptions, analyzed my spending habits, and more.
This passive income app is free and worth the 1-minute download as it can potentially save you hundreds.
More people should be using FREE this app.
7. Give Your Wallet a Boost
If you are looking for passive income apps you’ll also want to know about ways to track your money.
That is where Cinch Financial comes into play.
Cinch analyzes your money patterns, your accounts, and your cards to see if there are better deals for you out in the world.
It looks for problems you are clearly having and makes optimization recommendations.
Cinch is defintely worth checking out because let’s face it, making the right financial decisions is difficult. They do the hard part by analyzing your situation and forecasting step by step actions, to save you thousands.
Bonus: My Millennial Guide readers can get started for free by clicking here.
8. Get Paid for Things You Would Have Bought Anyways
Let’s say you’re going to Walmart or Target later — if you have the Shopkick app downloaded you will get rewarded just for going to that store.
It’s that simple, and all the major stores are available to receive points for. You then can redeem those points for gift cards to major retailers, including Amazon, Target, Walmart, Best Buy and more.
You’ll get even more “kicks” the app’s currency for scanning your receipts and any online purchases. You don’t have to do much as your linked cards will add your kicks for you.
It’ll actually be difficult to not to earn easy money with the Shopkick app.
9. Get on the Right Financial Path by Playing Games
Do you have smartphone games that you play sometimes? Angry Birds or Words with Friends come to mind? But are you now reading this article and kind of wanting to get your finances on track?
Our friends at Long Game created a game that actually helps you get on the right financial path.
You save money which earns you “coins” you use to play games. You can win cash prizes by playing games and much more! It’s totally legit too.
You choose your missions (saving money, increase balances on accounts, etc) to set your financial goals and go from there and earn money on the way.
Start the saving adventure! Complete your first mission and get 300 coins or click here for a 1000 point bonus to start out.
Don’t worry — Long Game is free, secure and FDIC insured. I’ve been using for about a month and saved $38.39 so far. Not bad.
10. Sell Your Old Phone and DVDs
Do you have an old phone lying around?
I know most of my friends and family do. Decluttr will pay you for them!.
You can try listing your junk on eBay or Craiglist, but this can prove to be quite the hassle.
You can easily sell it on Decluttr for cash.
This is the easiest way to sell it quickly.
If you’d like to get an extra 3% bonus on your trade-in, use my Decluttr 3% bonus link by clicking here.
11. Rent Out Your Car
Did you know that you can rent out your car when you’re not using it? And that you can bring in a lot of extra cash in your wallet by doing so?
Do you plan on heading on a vacation soon while your car sits unused at your home? Do you sometimes not use your car on the weekends? If so, renting out your car while you’re not using it could be an easy way to make passive income.
A well-known company, Turo, which has signed up nearly 5 million users to its website, according to Bloomberg, lets you do just that.
It’s also really simple to do (and free). Listing your car is quick and easy and takes less than 10 minutes to set up. According to a recent Turo review, somebody listed their car for 5 days every month and made $3,496 in a year.
Sounds pretty good to me.
Oh, and they also protect your car against physical damage, so you’re fully covered. You can sign up here and start making money with your car.
12. Earn Cash Every Time You Shop (and a $10 Bonus)
It may be hard to believe, but Ibotta pays you for going shopping.
No, really, it does!
The app presents you with a list of offers currently available on a wide range of products, from food to drinks all the way through to cleaning products.
Ibotta is free to download. Plus, you’ll get a $10 sign-up bonus after uploading your first receipt.
Here’s how it works:
- Look for a product you were planning on buying, and click on it.
- Earn extra money back by completing the extra tasks attached to the item, like taking a poll or sharing the item on Facebook.
- Select a participating store that you’re buying the item from.
- Upload a picture of your receipt.
- That’s it! Simply sit back and wait for the cash to show up in your PayPal.
13. Invest in Apartments and Commercial Real Estate for as Little as $500
Wouldn’t it be great if you could invest in commercial real estate and apartments without dealing with all the hassle of buying, improving, and re-selling real estate?
You don’t have to be a millionaire to invest in these types of properties. You can now invest in large-scale real estate for as little as $500 with Fundrise.
Through their real estate investment products, investors earned an average of 8 – 11 percent on their money last year, and all without painting a wall or dealing with unruly tenants.
There is a reason why they currently have over 200,000+ users, this app really pays you!
If you’re interested, I recommend you sign up for more information from Fundrise by clicking here.
14. Make Passive Income Playing Trivia
What is the most popular drink in the world that does not contain alcohol? What the official national anthem of the United States of America? What is the Capital of Australia?
If you answered coffee, star-spangled banner, and Canberra, then you may want to look into the NEW Trivia App that pays you huge cash prizes for your smarts.
Today’s prize is worth over $1,000! I’ll be playing, will you?
Click here to download the free trivia app and start winning cash daily!
|What I like about this app? You’ll get $$$ just for testing your knowledge and they pay you straight cash without doing any work.
15. Check your Credit Score
This can definitely lead to more passive income.
By checking your credit score and working to fix any discrepancies or building it higher you can pay less in interest, which will increase your net worth.
If you don’t know your credit score, you can use free services that Credit Sesame that gives you your score for free. You can find out your score in under a minute!
Click here to find out your credit score for free.
16. Fully Optimize Your 401k For Free
You can also make money by optimizing your 401k, for free.
If you have an employer-sponsored 401k then you might be interested in learning how Blooom can help make your 401k better.
Blooom will analyze your 401k for free and provide you with personalized suggestions on how to better invest your 401k in minutes.
|Bonus: They are conveniently offering MMG readers a free analysis, so act fast (Promo code:BM86QVZS).|
A little professional tune up right now can make you a whole lotta money in the long run. Remember, it’s totally free.
More people should be doing this!
Click here to get a free check-up on your 401k just for being a reader.
17. Get Cash Back for Your Amazon Purchases
You’d be silly not to get cash-back for items you would have bought anyway. You can do this by shopping online with Rakuten.
Rakuten is my favorite way to make money when I shop online and right now they are offering $10 sign up bonus through this link.
Every time I shop online, I start at Rakuten and then I get cash back deposited into my PayPal account.
Hello, free money!
Residual income ideas
A lot of people learn about residual incomes and decide to also find a source – this is understandable considering residual income boosts your finances. Some residual income ideas include:
18. Make passive income by starting a blog
Blogging is a great way to earn residual income. When you start an active blog with a lot of visitors, you get paid. Especially when you start attracting advertisers. This way you get paid simply for putting ads on your blogs – even when you aren’t posting, visitors increasing on your blog and your advertisements will generate you income.
The best part? Starting a blog is easy. You can get the initial setup done in under 20 minutes.
If you don’t have time right now to set up your blog, you can sign up for my how to start a blog email course. It’ll teach you how to start your own profitable blog and generate passive income within the first 30 days.
Sign up here for the free email course:
19. Make residual income investing your money
It’s difficult to argue against the benefits of long-term investing.
Historically, most people who have taken a long-term view of investing have ended up making money.
The most important thing is to make sure that you are armed with the right information and best possible investment options before making any decisions.
We all heard the old saying “Make your money work for you” right? Investing can sound tough if you don’t have a lot of money lying around. But investing can be for everyone — even if you only have $100.
Are you interested in learning about a new, free way to invest?
Then you’ll love this new investing app that allows you to start investing with only $100. Combining the best of both worlds – traditional investment brokerage accounts with Robo-advisors, M1 Finance is one of the best investment platforms we’ve reviewed.
M1 Finance enables investors to create diversified portfolios, access a variety of financial tools and offered completely free to individual investors. If you are interested in investing for free with only $100 you can sign up for more information from M1 Finance by clicking here.
at M1 Finance
Short Description of M1 Finance
20. Rent out rooms through Airbnb
If you have a spare room or apartment, you can list it out on Airbnb to get tenants. The best thing about this idea is, the tenants are temporary. This way they can stay for a short period and leave so you can decide on whether to keep renting or not.
Residual income vs passive income
Despite being interchanged often, there’s a difference between passive income and residual income.
While passive income is the income gotten with little or no effort(from stock investment property investments and so on), residual income is a leftover income you get after you have done your work. Passive income is good because it requires little or no effort to generate the income but with residual income, even after you’ve paid up all your bills, you still have some “disposable income”.
Make residual income investments
I’ll share some of the best residual income investments I’ve found that you can take advantage of easily.
Let’s get started!
21. Take advantage of a passive income opportunity with Fundrise
Real estate is one of the most popular ways to generate residual income. Real estate investment might seem big or only for the wealthy but the truth is, there are other ways an investor can generate residual income despite income stream.
Fundrise is a platform that provides investors with an opportunity to make efficient investments with minimum income. One of the best parts about Fundrise is that the platform provides a diversified investment to anyone in the United States. This diversification is great because it can help build a viable and stable stream of residual income.
22. Earn competitive returns investing
The app you should know about is SoFi Invest 📈. It’s easy, it’s fee-free, and it’s a bright idea.
Not-so-newsflash: fees are frustrating and they can keep people from investing. It’s why SoFi charges $0 in SoFi transaction and management fees. So there’s no reason not to start investing.
If you get started with SoFi, they’ll give you $25 to start investing.
You don’t have to be a pro to invest like one, so get trading. Get $25 when you sign up through this link.
|Bonus: Start trading today– and get $25 when you sign up through this link.|
Invest in the stock market
Yes, you’ve probably heard the phrase before. Let your money make you money.
You can find ways to generate passive income by using your money in your bank account.
If you are looking for new investment opportunities or options, check out our below our top rated stock brokerages available to you. You will find all the terms and conditions with the latest update on the web!
|$5||$1-3 per month||
VISIT M1 FINANCE
|$500||0.15% in annual advisory fees||
When Should You Start Investing?
It’s a common misconception that when people hear about investing they believe that they need “wealth” in order to invest when actually the opposite is true. You don’t need millions of dollars or even tens of thousands of dollars in order to begin investing for your future.
The best time to start investing is when you are just starting out with modest savings. The reason for this is the magic of compound interest. Compound interest is when you earn money on a deposit (a percentage that varies depending on the type of account), and then you earn more interest on that interest from the initial deposit, and then this process keeps continuing for 10, 20 or 30 years until your money has greatly increased in value!
Example of Compound Interest: You invest $1000 as an initial deposit into an account that pays a 6% interest rate (slightly lower than the average of the stock market), and then you deposit $300/month (About 10% of $50k/year salary). After 10 years you would have $50k, then $141k after 20 years and $307k after 30 years. And this is even without increasing your savings relative to your rising salary!
The best part is that you can start doing this right now with investment options available to the average person.
“SO YOU’RE TELLING ME THAT THERE IS AN ACCOUNT OUT THERE THAT WILL ALLOW ME TO GROW MY MONEY THAT MUCH?”
And my answer to this question is YES.
And the best part is that you don’t have to buy expensive blue-chip stocks (Apple, Amazon, Google, etc.), a life insurance policy or an expensive rental property to generate this extra income.
All you have to do is deposit your extra savings each month and be patient as time is your best friend.
When you only small deposits from your savings each month, over a 10, 20 or 30 year period you can grow your savings into multiple six figures.
Do research on dividend-paying stocks
It’s been said that the average millionaire has seven streams of income.
Dividend stocks are usually always in the mix.
Dividend stocks are similar to regular shares of stock, but they pay you a small portion of the companies earnings monthly or quarterly.
So it’s wise to build a portfolio of dividend-paying stocks that will give you passive income, or give you passive income while you’re sleeping!
If you ready to get hip to dividend investing, check out these awesome apps below:
What I like about Webull is that they make it really easy to invest in stocks, while still having plenty of features as you get more comfortable with investing. Plus, they’ll give you a free stock valued up to $1,000 just for joining. The process is easy, just sign for a new Webull account using this referral link, after registering — you can download the app and in the menu hit “my free stock” to see which stock you got.
The stock will be worth between $3 and $1,000 and credited within 5 trading days and you can sell it right away and withdraw the money to your bank account if you wanted too.
Robinhood is a free investing app for your phone. I really mean free all around – free to join and they don’t charge any fees to buy or sell stock. You can buy dividend stocks with Robinhood and get a paycheck quarterly or monthly!
Looking for more ideas? We put together a list of 30+ Ways to Make Money with Passive Income Ideas.
Have you started making money so that you can pass on your generational wealth?