Building generational wealth is like running a relay race. Each generation passes the baton to the next, with the goal of creating a legacy of financial security and success. Some families — like the Rockefellers — have been able to do this on a massive scale.

Their family name has become synonymous with generational wealth since the 1870s, when John Rockefeller, his brothers, and some business partners started the Standard Oil Company. From this, he became one of the world’s first billionaires, and his wealth has been passed down for many generations.

But you don’t have to be a billionaire to build generational wealth. With careful planning and smart investments, anyone can create a solid financial foundation for their family’s future. Here are some key tips to get you started:

Invest in stocks

Stocks have historically provided a great return on investment. By investing in a diversified portfolio, you can reduce your risk and build wealth over the long term. In 2002, for example, $1,000 invested in NCBFG stock gave investors returns of $59,524.40 in 2018 (just 16 years later) – this represents a 5,000 per cent return on investment, or a compound annual growth rate of 27 per cent.

Invest in real estate

Real estate is another great way to build wealth. By purchasing property and renting it out long-term or short-term like Airbnb, you can create a passive income stream that can be passed down to future generations.

Buy life insurance

Life insurance can provide financial security for your loved ones in the event of your untimely death. By leaving behind a lump sum payment, you can settle debts you may leave behind and provide a safety net for your family.

Start a family business

A family business can provide a stable source of income that can benefit your family for generations. By creating a business that can be passed down, you’re giving your family a valuable asset that can help secure their financial future.

Teach financial literacy

One of the most important things you can do to build generational wealth is to teach your children about financial literacy. By passing down your knowledge of money management and investing, you’re empowering them to make smart financial decisions and create wealth for themselves and future generations.

Most importantly, remember that building generational wealth is a marathon, not a sprint. One of the most successful investors in history, Warren Buffet, is proof that having a long-term perspective, consistency and discipline are the keys to building a legacy of wealth that will last for many generations. By following these tips and laying the groundwork for your future generations, you can create a legacy of financial security and success for your family, even if you’re not yet a billionaire.