Being rich and being wealthy are two very different circumstances. Being rich ensures that you are well to do and live a nice life. Wealth is acquired for generations to come. Generational wealth is significant as the access to wealth for marginalized communities has been impacted significantly as a result of the lack of generational wealth. The principles of generational wealth are the intersection of financial literacy and investments. Financial literacy is typically obtained with people in their late twenties or early thirties through programs such as Dave Ramsey's Financial Peace University. However, investments, aside from a 401K put together by an employer and social security, are very rarely executed. The secret to investments is compounded interest. So the longer you allow the money to work, the more gains you acquire. Because of this, I found it necessary to discuss the major principles that will help anyone build generational wealth. More specifically, how someone can begin to build generational wealth in their 20s to take the most advantage of this compounded interest.

The first principle is to change your money mindset. I have attached the blog post associated with this topic, but having a positive money mindset is defined by understanding:

All things come from the Lord.
Money is a tool.
There's always more money.

Understanding these key principles will allow you to look at money in such a way that you can use it, but not be dependent upon it.

Similarly, once your mindset about money is well centered, you need to practice principles of financial freedom. Understand that financial freedom is when you can tell your money what to do and not the other way around. When you are not bound by contract and/or timeline concerning your money, you have reached financial freedom. Financial freedom is obtained in three steps as well.

Start as financially free as possible. Do not acquire unnecessary debt and/or pay off as much debt as you can as soon as you can.
Practice financial literacy. BUDGET your finances in such a way that you minimize your expenses and maximize your income to give you the most options for your money.
Diversify your income. First, understand that you cannot work odd jobs forever. You need to have a career (even if it's being a serial entrepreneur). (Check out the attached video for more details in the difference between a job and a career.) Second, you should try not to depend solely on one source of income. Having side hustles are imperative to building wealth in today's climate.

The last principle of building financial wealth is discipline. You can have all the money in the world, but if you don't have discipline in your finances, you'll blow all of your money. Specifically, you need discipline in three areas:

Exercise discipline in your giving. I've discussed this before on this platform, but giving is the supernatural factor to all finances. If God can trust you with little, he can trust you with much.
Build discipline in saving. This is coupled with the principles of budgeting, but saving instead of charging to a credit card will keep you out of debt. Similarly, it allows you to have rainy day money for more immediate problems.
Use discipline in investing. There are many different forms of investments. I'll do a separate blog post about more of them as I learn. On a very simple level, if you have an employer looking to match your investments into a 401K, DON'T LEAVE FREE MONEY ON THE TABLE! Also, if you have educational benefits or an opportunity to learn something for free, DON'T LEAVE FREE MONEY ON THE TABLE! Lastly, any form of investment in the future will change the trajectory of your legacy. Any form of investment (real estate, life insurance, retirement accounts, education, or businesses), are going to grow as you age, so the sooner you do them, the better.

While these tips are relatively as simple as 1-2-3, so many individuals don't take advantage of these tools in their 20s. With all of the options and resources about finances and a little bit of will power, we can build lasting lines of legacy one generation at a time.