Wealth building for any income level

Wealth building provides financial stability while ensuring lifestyle maintenance and financial independence during retirement. It also supports philanthropy through donations and volunteering, the pursuit of further education, and other entrepreneurial endeavors.

But perhaps one of the most important impacts of wealth building is the ability to leave a legacy for your children by passing on assets from one generation to the next for their continued financial security. This is called generational wealth – and building generational wealth is essential to economically empowering Black, Indigenous and People of Color (BIPOC) communities.

Building wealth is not about having a bigger house, a better car or the fanciest vacations. It is about having enough money to pay your bills and sustain a desired lifestyle, even during personal or widespread financial instability. Financial cushions help weather unexpected financial emergencies or setbacks, reducing stress levels and improving quality of life.

Wealth building provides financial stability while ensuring lifestyle maintenance and financial independence during retirement. It also supports philanthropy through donations and volunteering, the pursuit of further education, and other entrepreneur- ial endeavors. Perhaps one of the most important impacts of wealth building is the ability to leave a legacy for your children by passing on assets from one generation to the next for their continued financial security – this is called generational wealth. assets – cash, and other things that people invest in like real estate, insurance, stocks, bonds, valuables, etc.,” says Stephen Spears, senior vice president of Twin Cities community banking at Bremer Bank. means not depleting all accumulated assets in a single generation or family,” Spears says. ting to the next level faster, and that can be very discouraging” he says. sound financial planning. Steps to building generational wealth accumulation of

Building generational wealth is essential to economically empowering Black, Indigenous and People of Color (BIPOC) communities. For centuries, systemic racism and discrimination have limited opportunity for BIPOC communities to accumulate wealth, leading to a significant gap in finances compared to white families. According to the Federal Reserve, the average net worth of a white family in the U.S. is 10 times that of the average net worth of a Black family. Fortunately, there are opportunities for BIPOC communities to build generational wealth.

Accumulated wealth can be calculated by subtracting liabilities from their assets. Liabilities include expenses like mortgages, credit card and tax debt, student loans, and other financial obligations.

What is generational wealth?

Homeownership is one of the most common ways to pass on wealth. Other passed-down assets can include financial investments, businesses, valuables and cash savings.

How is wealth determined?

“Generational wealth is the ability for someone to pass their accumulated assets down from one generation to the next, setting succeeding generations up for success. It

The median net worth for white families is almost seven times that of Black families and 3.5 times that of Hispanic families. Spears notes how the impact of rapidly widening disparities in wealth and income can be challenging to process.

“Wherever you may be sitting in your journey of increased income and wealth, it feels like more people are get-

Historically, generational wealth has been more prevalent among certain groups, particularly white families. The wealth gap between white and Black families exists due to challenging factors, including income inequality, limited access to quality education and college, and a long history of housing discrimination and other systematic forms of discrimination.

However, generational wealth is not limited to any one group. People and families from all backgrounds can accumulate and pass down wealth to future generations through

Living frugally while saving and investing early and consistently can make a significant difference in your journey of building generational wealth. “You can develop generational wealth through a saver’s mentality,” Spears explains.

The following are steps to take to build wealth, regardless of your income level or financial situation.

Consistent income

To start saving, you first need to consistently earn

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