Legacies are built on mistakes. It is not always about how much money you can accumulate to pass on or obsessing over making an impact. It's what we learn from the mistakes and failures that can propel us forward and help us share the knowledge that we learned from these mistakes to those coming after us.
There is no point in inheriting a multi-million-rand inheritance but having no financial education to help you grow it. While there is no right way on how you can go about creating your legacy, we have some handy tips to get you started.
Start with the basics
It all boils down to what you value and what you attach worth to. So many people spend their time equating their legacies or what they want to do to the next person that they end up losing themselves. Creating a legacy should never be a miserable journey.
And while we are faced with the reality that we could be forgotten in the next generation or two, at least we can try to pass down values and ways to assess worth long after our names have faded. So what do you value? How do you go about assessing the things you attach worth to? Do these things help you grow both personally and financially? How can you maximise your strength to get the most out of your life?
How you handle money has a ripple effect. The habits that we learn today can impact our future and how our loved ones learn to handle money from us. A recent survey from Debt Rescue revealed that 85% of South Africans needed help financially during the COVID-19 pandemic. Furthermore, only 6% of South Africans have adequate savings to retire comfortably.
This means that many people will rely on family, their children and friends to make it through their retirement. Not only does this have a knock-on effect on affecting the possibility of your loved ones of saving for their own financial futures, but it also means that the financial stress and strains are repeated from generation to generation.
Having the future in mind
Managing your money relationship through financially educating yourself is essential. Knowing how to make your money stretch and involving your loved ones in the process of financial planning can help them learn how to handle money and how they can build financial safety nets for themselves.
Having things such as a life insurance and funeral policy is a great way to protect your family from the financial strains that families face after having lost a loved one. Always remember that it is better to pass on skills that can help your loved ones fish for themselves even when you are no longer around to give them the fish yourself.