Business & Finance

Generational Patterns and Generational Wealth

Wealth for people of African heritage

Cathy Assoba

May 24, 2021

For many Millennials who identify as a diaspora. You have a birds-eye view of which the path to choose in your life. Path one is the cumulative effect on all things that have gone wrong in the community and its continuous harmful cycle. Path two aims to avoid path one plus trying to be the first to break barriers in your family and branch out of your environment. The latter being extra hard work.

Materialist to Minimalist

First and foremost, financial literacy changes our embedded habits on how we view money; this is the foundation of having long-term financial objectives as your money motivation.

Melanated people are repeatedly the lowest-earning group in all western countries to date. Yet there is a mass in the group aligning their budgets with materials unintendedly prohibiting generational wealth. Endorphins and dopamine the brain releases from shopping are very short-lived and the community needs acknowledged this more.

We look to people we aspire to and are influenced by their livelihood, as much as that can be beneficial to enhance our work ethic, we shouldn’t set our sights on matching their lifestyle because that can be disruptive, for instance spending $1000 on a product (with no potential appreciation value) is 1% of that individual’s income and 70% of an average person.

Financial Freedom

This comes in many ways; we often hear stories of people quitting their day job and perusing entrepreneurship. I don’t recommend anyone doing that, not impetuously for two reasons, 1. The story you heard is fabricated in the best storytelling manner 2. They put thought into their decision with savings in the bank or financial support elsewhere.

Financial freedom is when you don’t live and depend on a paycheque to paycheque, by diversifying your income from side hustle to passive incomes. With endless ways to achieve income away from your regular work, it’s important to find the right niche and passion opportunity that fits and suits your set of circumstances. The majority of millionaires have seven streams of income to achieve millionaire status.

Comparison Culture

Where the problem starts to erode, for many millennials, the motivations spur them; however, being melanated people, we often forget the struggle is ten times harder than our white counterparts, who for the majority are many generations ahead.  The journey ahead is long, and determination and dedication should be your fuel and previous generations’ examples as your fire. Not everyone is prepared to push themselves to that extent.

Incorporate gratitude into your lifestyle and count your small wins as every achievement is a step ahead for a promising future.

The Power of Nepotism

As you grow in realigning your way of living, see the light in bringing people up with you. If your money mindset has changed, teach others in your circle to do the same, if running a business has allowed you to hire someone, hire someone within your circle and teach them entrepreneurship. The sigma behind running a business means you need to be an expert in all business areas that need to be deflated as it’s almost impossible. Whether you lack expertise, hire someone who will appreciate the role and is passionate within that domain to succeed in areas you do not have time or knowledge in.

Nepotisms has its pros and cons; however, it can be very beneficial for diaspora’s generational wealth if used wisely and ethically.

WeAfric aims to encourage more conversations about finance and future prospects in the community. It is pivotal for these topics to be discussed frequently and spread so more people are educated on financial intelligence.

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