Many of today’s entrepreneurs aren’t looking to start businesses just to make money; they are looking to make a difference while making money.
For generations, the main reason for investment was to build wealth. And, if you were fortunate enough to achieve that end, a subsequent goal was passing that wealth on to heirs.
Younger generations, however, are setting their sights on more than financial wealth. This new class of investors is merging the classic profit mindset with a view to the future. They want to build a legacy, fortify society, and contribute to the overall well-being of their communities and the globe.
This isn’t just philanthropy. Organizations with the primary mission of helping those in need have been around for decades. With legacy investing, individual entrepreneurs are still primarily focused on business and profit, but they are using these resources to affect real change.
By marrying the tried-and-true methods of entrepreneurship and wealth accumulation to causes and resources that help their communities and future generations, this new breed of investor is reimagining the potential of investment.
A New Way of Thinking
Everyone wants to build wealth and create more revenue opportunities, but is capital accumulation the only thing that matters?
Legacy investing comes from an unconventional view of the world. The traditional mindset is simple: work hard, stay disciplined, and the fruits of your labor will carry you through your retirement. Most of us know that paradigm is no longer common.
The digital age has disrupted industries. Stable employment that offers a 30-year career with benefits is extremely rare. Entry-level positions that once provided a clear path to promotion and management have shifted to a more gig-based economy.
Subsequently, young people have had to look for alternate opportunities in sectors that were previously untapped. Through this process, many have opted not to settle for just a paycheck. They want more. They want meaning.
Some claim that younger generations are too shortsighted and self-focused. Yet, many entrepreneurs from this group are making it their life’s work to build legacies that help their communities, create resources for those in need, and tackle the most pressing issues facing our world. They recognize that these challenges, while enormous, are not insurmountable.
There are many ways to invest time and finances and myriad ways to make money. In the past, it often seemed like you had to choose between doing good in the world or doing well financially. But the two aren’t mutually exclusive.
Traditionally, savvy investors analyze data, crunch the numbers, and weigh the pros and cons of every investment. Yet, many fail to account for the intangibles of investment returns. What if it were possible to do well financially while also doing good in the world? With so many unique investment options available today, this is not only possible but also preferred by many.
Legacy investors want more than just a financial return on investment—they want to invest with purpose. After all, when people think about a well-lived life, they rarely conjure up images of healthy bank statements.
How can ordinary entrepreneurs make an extraordinary impact and leave a legacy?
It all starts with knowing your “why.” There is no singular path to legacy investing. However, understanding your personal convictions will help inform your next steps.
Find out what matters most to you; then explore what business opportunities fall in line with those priorities. One of the great things about legacy investing is you don’t have to be rich to do it—but you do need to have a plan. Wherever you are right now in your entrepreneurial career, you can begin using your resources to invest in things that matter beyond the balance sheet.
When it comes to legacy investing, building character is even more important than money. Self-reflection is key here. Take the time to consider your future and the kind of person you want to be.
If you focusing on personal development and follow your purpose, regardless of how successful you are, you will never lose sight of who you want to become.
After all, it isn’t the money; it’s the people who make a business great. Learning how to navigate the connections you make and the relationships that fuel your business is critical to your success.
Thinking outside of oneself is the hallmark of a wise person, and the same is true in business. Your family and friends can’t inherit your job, but they can inherit your business and continue your legacy. Anyone with the right strategies can amass capital, but investing those resources in others and living in a way that leaves an imprint on the world is a truly incredible accomplishment.
Legacy Investing with Real Estate
Real estate investing remains a lucrative vehicle for wealth creation. Finding ways to use real estate to generate profits while helping others is an area of significant market growth in recent years.
Just one of the amazing ways that many entrepreneurs are now making a difference with their real estate investments is through shared housing.
Similar to traditional rentals, investors buy, renovate, and rent their properties. But unlike traditional rentals, these real estate assets are combined with the income potential of a profitable business that generates cash flow. They are specialty homes that provide accommodations to groups like seniors, veterans, those in recovery, etc. And many of these homes are subsidized by substantial federal grants.
Real estate generally appreciates over time, but real estate that generates significant cash flow is an incredibly valuable resource, and definitely an option worth exploring.
Regardless of the path you choose, consider investing beyond personal financial gain. Build something that outlives you.
A great way to create a legacy is to make sure that when you are investing your time, resources, and money, you get more in return than just money.
Kurt Coleman is the lead copywriter for RALAcademy team, a company in the residential assisted-living niche. He brings a wealth of skills and experience to the company and enjoys sharing with investors how to use their skills and knowledge in the real estate industry.
Coleman is a graduate of Arizona State University with several years’ experience as a team leader, systems developer, and writer.