Where do you fall in the economic spectrum? Are you in the lower, middle, or upper class? Depending on where your financial status places you, it may determine your view of “Wealth Transfer”. Some have views that “Wealth Transfer” only involves taking from the rich and giving to those in lower economic classes. The wealthier individuals may believe they are worth more than others when actually the people under them have helped to propel them to their level.
What exactly is “Wealth Transfer”? This transfer is when money is moved from one person or group to another person or group. Slavery was a big source of “Wealth Transfer”. People were forced to work and build wealth for their owners without receiving their proper pay. While slavery was an injustice and assisted some wealthy families achieve their wealth, you will be surprised to know that it is not the largest source of the transfer of wealth.
Where does the largest transfer of wealth really come from? The amazing answer is that it comes from consumers purchasing unneeded items! Before you make that next purchase, ask yourself is it really worth it? Yes, stores have signs stating items are on sale, but are the items really worth the price? No matter how much an item is discounted, the stores are not going to lose money. If they can get us to pay for items we don’t need, their marketing efforts have been successful. While it may not be a true transfer of wealth, it is an economic transfer on paper. When consumers continue to purchase unneeded items year after year, you will quickly understand how someone can go deeply in debt while the people at the top continue to gain wealth. Do you have any items in your home that you do not use? The people at the top are thankful that you have contributed to the “Wealth Transfer”.
To prevent the disparity of “Wealth Transfer”, we must be mindful of our spending. We must stop buying depreciating assets. When was the last time you or anyone you know bought cars, purses, televisions, etc? Now, when was the last time you or anyone you know started businesses, bought real estate, or even invested in stocks? We must do our part to prepare for the future. We must develop financial plans and follow them to ensure we are prepared for the uncertainty in the future and stop the unnecessary transfer of our wealth.