'Wealth Does Not Stop. Rich Stops.' -- Grant Cardone Explains How To Build Multi-Generational Wealth

A high salary does not guarantee that you will build multi-generational wealth for your children. What you do with your money can build wealth, and that's a key lesson Grant Cardone shared in a recent video.

"Wealth does not stop. Rich stops," Cardone explained.

Here's how you can use this insight to approach your finances differently and set the stage for multi-generational wealth.

Don't Miss:

• 7,000+ investors have joined Timeplast's mission to eliminate microplastics—now it's your turn to invest in the future of sustainable plastic before time runs out.
• $100k+ in investable assets? Match with a fiduciary advisor for free to learn how you can maximize your retirement and save on taxes – no cost, no obligation.

Today's Best Finance Deals

Your Wealth Can Outlive You

Cardone started the clip by mentioning that Walmart WMT founder Sam Walton still has five children who are on the billionaires list. His children are still on that list because Walton built the largest global retailer.

Walmart continues to generate positive cash flow for its heirs. While Walton doesn't earn any additional income, his assets have outlived him. Those assets continue to provide wealth for his children.

You can start a business and then hand it off to your children in the future. That's building wealth. You can also make a six-figure salary, but that salary vanishes the moment you pass away or can no longer fulfill the job's responsibilities due to age or another factor. It's also possible to get laid off from your job, while you have more control over your financial destiny if you start a business.

Trending: This AI-Powered Trading Platform Has 5,000+ Users, 27 Pending Patents, and a $43.97M Valuation — You Can Become an Investor for Just $500.25

Your Wealth Gets Split Up After Death

Cardone also mentioned that your wealth will get taxed and split up after you pass away. If you built your fortune on a rich salary with no assets, your children may not see a lot of it. Estate taxes and local taxes can also come into play, further reducing the inheritance you provide for your children.

That's why starting a business is valuable. The cash flow continues to arrive, and your heirs can improve the business to boost its profits. If you don't start a business, you can also invest in assets like stock and real estate that generate income.

It's better to be reminded of how your money will be taxed and split up when you pass your inheritance on to your heirs. It can give you the extra motivation to invest in passive assets and start a company that your children can inherit.

See Also: Are you rich? Here’s what Americans think you need to be considered wealthy.

Build A Brand

Cardone wraps up the video clip by explaining that he's building a brand. He believes people will continue to talk about him for 50 years after he passes away. That type of brand will give his children more options. They can expand his work and continue to generate income from the company that he continues to build.

It's easier to build a brand than ever before. You don't have to invest in supplies, retail locations, or any high-budget items. You can get started by creating a website, offering services that you can scale, producing content, and interacting with people on social media.

Those efforts won't guarantee that you build a successful brand. However, if you are strategic about your core services, how you will identify your target customers, what marketing channels you use, and how you guide people along the customer journey, it's possible to develop a successful brand.

Read Next: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here’s how you can earn passive income with just $10.

Image: Shutterstock