What is Generational Wealth & How to Build Towards it while in Debt
We hear Generational Wealth thrown around a lot, it’s something we are aiming towards and reclaiming for our families and ancestors but what is it and how can we take actions to build towards it? Even more, how can we even think about wealth when so many of us have student loan debt. That’s what the nerds are here to do.
So the first question is, what is Generational Wealth? It can be looked at as the wealth that is passed down from generation to generation. This is also often called Family Wealth of Legacy Wealth. Think of the money and assets, ie: house, stocks, companies, that you leave to the next generation.
Nationally, we have a student debt loan crisis but middle-class black and Latino folks are struggling the most to repay our debt. (resource) Not only are we underpaid but often we are not just paying for our own cost of living but helping our families, and having families of our own.
Now more than ever it’s time to talk about money and be strategic.
We are a chismoso community and with the power of the chisme & the internet, we can spread knowledge. Thanks to the power of the internet we are getting savvier about money and finding the tools. Tools like Snowball Wealth, founded by Latina serial entrepreneur Tanya Menendez.
So how can we aim to pay down our debt and build generational wealth? Let’s break it down into 5 simple steps and see how Snowball Wealth can help us.
Step 1: Evaluate your Finances
Take a look at your money. Yes, this isn’t going to be the easiest, but it’s okay we’ve all been there. We gotta get real! We can’t tackle what we don’t know. So step one look at all your money coming in and going out by making a budget.
We hear Generational Wealth thrown around a lot, it’s something we are aiming towards and reclaiming for our families and ancestors but what is it and how can we take actions to build towards it? Even more so how can we even think about wealth when so many of us have student loan debt. That’s what the nerds are here to do.
So first question what is Generational Wealth? It can be looked at the wealth that is passed down from generation to generation. This is also often called Family Wealth of Legacy Wealth. Think of the money and assets, ie: house, stocks, companies, that you leave to the next generation.
Nationally we have a student debt loan crisis but middle-class black and Latino folks are struggling the most to repay our debt. (resource ) Not only are we underpaid but often we are not just paying for our own cost of living but helping our families, and having families of our own.
Now more than ever it’s time to talk about money and be strategic.
We are a chismoso community and with the power of the chisme & the internet, we can spread knowledge. Thanks to the power of the internet we are getting savvier about money and finding the tools. Tools like Snowball wealth, founded by Latina serial entrepreneur Tanya Mendez.
So how can we aim to pay down our debt and build generational wealth? Let’s Break it down into 5 simple steps and see how Snowball Wealth can help us.
Step 1: Evaluate your Finance
Take a look at your money. Yes, this isn’t going to be the easiest, but it’s okay we’ve all been there. We gotta get real! We can’t tackle what we don’t know. So step one look at all your money coming in and going out by Making a budget.
Lucky for your Snowball Wealth has a great Budgeting Dashboard Resource for you to start. (resource)
Step 2: Make a Debt Repayment Plan
Easier said than done right? Now that we have looked at all our debt we can look at our credit card debt, the amount we own on loans, and look at our loans with the highest interest. You want to pay off any credit card interest as much as you can– a good rule of thumb is to use your credit card like you would a debit card – meaning do not spend more than you have coming in! But we already know that cause we followed step 1 and made a budge
Step 3: Refinance
If you have high-interest student loans you may want to see about refinancing your debt. This essentially means a transfer of debt at a lower interest rate so instead of having 10% interest on a 100K loan paying 10K in interest you can refinance it for 4 % and pay the only 4K in interest fees on 100K saving you 6K. Signing up for Snowball Wealth will help lay it out and using AI will lay out which option is the best for you in the long run.
Step 4: Make a Plan to Pay Down Your Student Loans
Paying the minimum will take you 10 – 30 years depending on what plan you are on but more so it will cost you thousands more in interest. We’re not about that life – we want to make sure we save money and use that to invest in ourselves and leave a legacy.
Step 5: Find Money Friends & Invest!
Your Network is Your Networth – and I know we have communities that go beyond money can measure but we need to be spreading more than just chisme about Latinas latest Amante and more about MONEY building resources. We need to be sharing more with each other about how we can learn to invest in our futures, build together, and keep growing wealth in our communities for generations to come. Joining events that promote this, joining slack communities to discuss these hard convos, and learn what investing even means!
Yes, money can feel difficult to talk about but it’s because we haven’t been taught how and more so haven’t been given the tools to tackle it!
Money is just a tool, it is a tool that can keep us oppressed or open doors. To build generational wealth! Now more than ever it’s easier to break down barriers and leverage technology to do it! Sign up for Snowball Wealth today and start by getting your free plan and find a community ready to build wealth with you.
