Diwali, the festival of wealth has arrived. To our knowledge, no other country in the world has a festival, and that too its most prominent festival, which celebrates wealth. Given this, literally, “rich” heritage and culture, isn’t it appropriate to focus on your family’s wealth and prosperity. We wish everyone else prosperity and wealth for the new year. Why don’t we focus on creating that for our own family? And why only for the next 1 year, but why not for the next 100 years?
Given our ancient tradition of worshiping wealth, isn’t it correct to focus, during Diwali, on building lasting, multi-generational wealth for the family rather than focusing on ways of spending it?
Wealth is sacred, as it should be. Wealth or Capital is the crystallization of all the value one has created through vision, hard work and ingenuity combined, sometimes, with natural resources. When someone invents something which saves times, eventually that saved time is crystallized in the form of money and can be utilized at some other time when one might need to use that time for some other purpose. Capital is the most important man-made resource which helps to extract more out of the most important natural resource given to man, i.e. time.
Creating capital or building wealth and passing it on to future family members is a gift of these most precious resources to our future generation. This Diwali decide to grow wealth.
Most readers would think that they might not be able to grow much wealth. But remember that there are hardly 250,000 dollar-millionaires in India. Even if you are able to build a corpus of a million dollars it is substantial. But given the power of compounding you, and your future heirs, can probably grow much larger wealth for your family over a period of 100 years. Just consider this, with a 10% rate of compounding, if you allocate even 1 lakh rupees towards your family wealth, it could become nearly 140 crores in 100 years. (And yes, it would have immense buying power too despite inflation.)
The point is not to show a large number using compounding, but rather to instil the belief in the power of compounding and that it can be used to create large wealth. Then why don’t most families do it? Where are all the rich families?
A few business communities understand the power of compounding and wealth building over generations and you can see that these communities have immense wealth. It is within your reach to create immense wealth for your family too. But it requires vision. Vision, exactly the way it is required to conceptualize and build a 100 storey building or going to the moon or climbing the Everest.
You need Vision to create a 100 year Family Charter. You need to have a family constitution which fixes the 100 year goal and milestones in between. It should require that each generation of the family contributes to the family corpus and leaves a corpus much larger than before. It requires a commitment to add regularly to the corpus in each generation. It requires a system of values which respects capital and which understands the power of capital. It uses this capital for family wealth as well as for creating great enterprises which contribute to the national and global economy. The capital should be used for philanthropy, not as grants, but in a manner in which it preserves and builds the capital while using only part of the returns.
This probably sounds too difficult and unlikely to you. Only a few of the readers are going to take this seriously and start working on this. But I challenge you to think of a 100 year Vision for your family!
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