Black History Month Basic Money Strategies: Creating Generational Wealth Part 2

Now that we have introduced some mindset shifts around receiving wealth from part 1, if you haven’t read it yet, check it out HERE. , we can move forward with learning strategies to make the magic happen.

Creating generation wealth begins with a choice and happens with aligned action. In part 2 I’ll be covering simple money concepts you can learn/or pass down to your kids so they have a head start in a financially free future. Be gentle with yourself as you approach something new. Don’t shame yourself for past money choices, we’re starting fresh, in knowing better we do better. Let’s Dive In!

  1. In and Out Method- In short this is a very practical budget. Every month you’ll write what you get as income (In) and what you spend (Out). If your spend number is bigger than your In number it’s called in the red, and it’s no Bueno.  That feels like trying to get paycheck to paycheck, having more month than check etc, leading to stress and arguments in couples. Pass this on to your children by being mindful of the money they get (In) and how much they spend (Out). Concept 2 takes this a step further if you’re not sure why or how your finances are the way they are.
  2. Spending Plan to Success- Having a spending plan will remove the mystery of where your money is going. Checks don’t come with instructions on where to spend the money, causing us to do things like accidently dip into the bill stash to pay for Chic Fil A. Wouldn’t it be nice to know each bill is taken care of and not doing the debit card roulette waiting for a bill to be debited out? Having a list of all expenses will help you make wiser, healthier financial choices toward generational wealth. Make a list of all your bills, treats, and non negotiables, write the amount and date they are due. You could take it a next step and set up auto draft payments to alleviate more stress, but making your spending plan is a great place to start. You’ll be able to see where you can cut back on things and where you apply more to saving/investing. Pass this down to your kids by teaching them to track monthly expenses, practice paying on time, and being aware of finances.
  3. Pay Yourself First- This simple concept can help you save faster than you realize. By choosing to direct deposit a small percentage of your check in a savings account (with no card attached) before it hits your main account is a game changer. By choosing to pay yourself first, and teaching your kids to, you create a new neural pathway that it is okay to get paid first before you pay your bills. This little magic trick has helped me grow my emergency fund with ease. I was so excited to see how much I saved in 3 months. Remember out of sight out of mind is good when it comes to saving money.

Cultivating wealth for your kids is so rewarding. We all want to provide them with better than what we had, following these concepts will make it easier for you to do that. 

If you need more help after reading this, I invite you to a free consultation for a more personalized strategy. Book yours HERE

Please share this article for fellow mommas and comment below your biggest takeaway so far!