Financial Tips for First-Generation Wealth Builders

While financial planning is quite complex, it can be a critical step for first-generation wealth builders.

Effective Foresight as You Build Your Legacy

It can be daunting to be a first-generation wealth builder with lofty aspirations. While you may not have been fortunate enough to inherit generational wealth, you can blaze your own path to financial success and leave a legacy for those who come after you. Whether you have been building first-generation wealth for a while now or have only recently started on this path to financial success, we think it is vital that you have access to timely and relevant information. Below, you will find four tips and strategies that can propel you forward as you strive to build first-generation wealth.

Tip #1: Prioritize Your ‘Why’

On your road to building first-generation wealth, it can be important to stay focused on the “why” behind your efforts. Your journey to financial success isn’t just about you, it’s about giving your loved ones better opportunities, such as a robust college fund, the money for a down payment on a home, or assets that they can use to support their own wealth journey.

If you want your legacy to live on, you might need to prepare the next generation to step into your shoes. This can be as simple as teaching your children how to manage and invest their money or ensuring that your loved ones appreciate the wealth that you are passing on. So, share your financial knowledge and experience, but also share your values and the legacy you hope to leave behind. Open communication with loved ones can be helpful in turning first-generation wealth into a generational legacy.

Tip #2: Hustle

The phrase “work smarter, not harder” does not always apply to first-generation wealth builders. While you certainly need to work smart, you may also need to hustle. This is especially important during the initial phases of your journey.

For instance, if you are raising capital to start or expand your business, consider taking on a second job or a side hustle. Diversify your income and invest these auxiliary revenue sources toward your core financial objectives. Working harder and smarter than everyone else can help accelerate your growth trajectory and help your career progress at a rate that aligns with your goals.

Tip #3: Avoid Fear of Debt

There is a common misconception that all debt is bad. For the first-generation wealth builder, the context of debt matters. Whereas you should avoid consumer debt such as payday or credit loans, taking on business loans or similar financial responsibilities is often a necessary part of achieving your financial goals.

Some other forms of debt that can be beneficial for first-generation wealth builders include:

  • Getting a degree or certification
  • Leasing or buying office/warehouse space
  • Investing in real estate
  • Purchasing a home or business

If your aspirations require you to make investments, investigate the smartest ways to fund your endeavors. Don’t be afraid to take on the right kind of debt to help you achieve your long-term financial objectives.

Tip #4: Explore Insurance Options

Despite your best efforts, life can undermine your first-generation wealth-building efforts with its unexpected surprises. Fortunately, you can help protect your legacy and leave behind an inheritance by taking out an insurance policy.

When it comes to life insurance, there are two main options: term life and permanent/whole life. Term life is often more affordable, but it covers you only for a specified time frame (e.g., 20 years). When the term expires, you will need to obtain a new policy. Conversely, permanent life is more costly, but it never expires.

Explore both options and identify the policy that better aligns with your unique financial and personal needs.

Start Forging First-Generation Wealth and Leave a Legacy

To become a first-generation wealth builder, you must be intentional, disciplined, and focused. While you can certainly push toward your wealth-building goals independently, working with experienced financial advisors will help you navigate this lifelong journey and avoid common mistakes in each phase of life.

If you’d like to learn how the Aviance Capital Partners team can serve you as you work toward your financial and life goals, please schedule a no-obligation conversation.  With the right information and a financial advisor you trust, you can feel empowered to act with clarity and confidence on your financial journey.

Aviance Capital Partners, LLC (“ACP”) is an SEC registered investment adviser located in Naples, Florida. Registration as an investment adviser is not an endorsement by securities regulators and does not imply that ACP has attained a certain level of skill, training, or ability. While the information presented is believed to be factual and up-to-date, ACP does not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of ACP as of the date of publication and are subject to change. Not all services will be appropriate or necessary for all clients, and the potential value and benefit of the ACP’s services will vary based upon the client’s individual investment, financial, and tax circumstances. The effectiveness and potential success of a tax strategy, investment strategy, and financial plan depends on a variety of factors, including but not limited to the manner and timing of implementation, coordination with the client and the client’s other engaged professionals, and market conditions. This should not be construed as specific investment, financial planning or tax advice tailored to an individual reader. ACP suggests that readers consult a financial professional, attorney or tax advisory professional about their specific financial, legal or tax situation. Past performance does not guarantee future results. All investment strategies have the potential for profit or loss, and different investments and types of investments involve varying degrees of risk. There can be no assurance that the future performance of any specific investment or investment strategy, including those undertaken or recommended by ACP, will be profitable or equal any historical performance level. Additional information about ACP, including its Form ADV Part 2A describing its services, fees, and applicable conflicts of interest and its Form CRS is available upon request and at 

For current ACP clients, please advise us promptly in writing, if there are ever any changes in your financial situation or investment objectives, if you wish to impose any reasonable restrictions to our management of your account, or if you have not been receiving at least quarterly account statements from your account custodian. 

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