Generational Law of Legacy: Wealth Lessons & Measures of Success Beyond Your Paycheck
Your ability to move or develop from one generation to the next is dependent upon your understanding and internalization of the lessons from the previous generation. Skipping generations is possible, but a sustainable skipping of generations includes learning of the lessons and building upon the lessons with the resources and opportunities available to you. The resources are personal and unique to your environment. The opportunities are a function of timing. Remember that your resources include money, people, information, and time. Seek to develop networks, know-how over time. These translate directly into money. Seek through those resources to be prepared for opportunities.
For example, an opportunity to propose a business idea has come your way. You have had an idea and desire to run a business. Sustainable use of resources and opportunity find you ready with a draft business plan and a team of consultants–prepared. Unsustainable use of resources and opportunity find you attempting to find time to develop the proposal to meet the deadline–unprepared.
Your preparation is trained through the generational law of legacy. Each generation’s lessons instruct you on the reality of the system, your goals, and the outcomes that are possible. Review the lessons to consider what you still need to learn.
[If you haven’t read the original Generational Law article, get it here]
0 Gen: Job Security.
Sale of labor is only one option to secure income. Rather than being a part of the machinery, we can own the means of production. Education is seen as the key to access, ending dependence on sale of labor.
You can leverage income through trade of social capital, sale of ideas, or brokering in addition to sale of labor. Trade of social capital is most easily understood as what fundraisers do. They offer belonging, opportunity to give, or collective impact in exchange for money. Sale of ideas is what occurs when you develop a product or assurance and sell it. In return for the idea, you continue to receive revenue over time. Also, notice that the idea is still yours (owned by you) even though you have sold the product. Brokering is when you collect a fee for assisting two or more parties with a transaction. Brokering does not require inventory. It leverages your network completely most often through some mechanism of infrastructure.
1st Gen: Disposable Income.
Money can be transformative/active not just transactional/useful. Money is a means to leverage access, which changes the revenue calculation. The effects are multiplied over time.
Access has four components of interest. The ability to utilize income beyond survival allows you access to knowledge, relationships, markets, and mechanisms. Knowledge relates to formal education and informal education. Its true value is to understand that credentialing does not validate the idea. Ideas are validated simply because they work. Relationships includes network, but also access to the system of individual achievement—that is, how people succeed and are considered a success. The important lesson is an awareness of potential roles and collaborative goal achievement mechanisms. Markets distinguish between status symbols and the revenue streams as indicators of success. The true value of market access is the ability to bring ideas to market. Mechanisms refer to the infrastructure and unseen systems that manage delivery and control knowledge, networks, and markets. Access to the mechanisms enables a clear and complete view of the origins, components, systems, and switches of a society.
The results of labor can have longer-lasting revenue effects. Work can become production when owned yielding continued revenue even when work is completed. Entrepreneurship is a chief mechanism, but it is not only the idea of owning and running a business. Entrepreneurship here refers to the value of your individual creativity, your rejection of consumerism toward a producer mindset, and the spirit of ownership in the means of production.
Creativity is systematically under attack, not by sloth, but by counterfeits. Creativity is not the opposite of boredom. It doesn’t result from stillness alone. It is found in the rest after intense work. Many fail not realizing their ability to create. The child-like innocence of belief that anything is possible is a prerequisite to wealth creation. Not just the faith, but the absence of barriers and restraints. You have to rekindle your creativity.
Rejection of consumerism is still consonant with your purchases. It means, though, that your purchases are purposeful. The purpose can be recreation or even status symbol, but the difference between sustainable and unsustainable is your awareness and control toward investment-based purchases. Investment-based purchases have the expectation of a return.
Spirit of Ownership refers to the understanding that your purchases impact your development, but also that your development influences the environment. This understanding expands into action in later generations, but in the 2nd generation, it is awareness and the buds of intentionality not necessarily action.
3rd Gen: Creating Legacy.
You can impact a larger community. Investment in other businesses can multiply the residual effect. The management of money is a mechanism toward wealth creation that is less labor intensive than production or sale of labor.
In the 3rd generation, the lesson relates to the amount of money you now have. Your revenue in this generation is certainly beyond your bills. It is more than your recreation needs. You have made investments in the productivity of your family. Now, you must learn to invest in others. The simple rules include: 1) Expect a solid return on investment, 2) Require projections of return prior to investment, and 3) Maintain follow-up to both monitor investment and monitor how the mindset is paid forward.
4th Gen: Securing Community.
Ownership increases the ability to write the rules governing society. Wealth is measured by the ability to influence the future of society. Greater wealth enables influence over more aspects of society.
The lesson in the 4th generation centers on investment in community. More than just generosity and giving money away, learn to give in order to influence the community you want to see. Examine the opportunities for giving and determine their impact on the community. You will want to organize based on an understanding of community development around three vital areas: governance, infrastructure, and education. These areas impact the 5 basic institutions of marriage & family, faith & volunteerism, schools & learning systems, health systems, and business entities.