The three pillars of wealth-building

Think of wealth as a building with three pillars.

The first pillar of wealth building is “Real Property Assets” (your personal residence and investment real estate) because in general, real estate appreciates in value. You can also gain financial flexibility if you’re able to borrow money using your home as security. For more about real property assets, see the topic Buying a Home in the Hands on Banking Adults course.

The second pillar is investments — for example, a retirement account where you have stocks and bonds. For more about investing, see Investing basics and Get started with investing in this topic.

Three pillars

And the third pillar, for many people, is entrepreneurship — owning a business of your own. For more about starting, managing, and growing your own business, see the Hands on Banking Entrepreneurship course and the topic Earning $ in the Young Adults course.

Note: For most people, 2/3 of family wealth is in the family home. Home equity can be a source of capital for all your wealth-building goals, and a home can be a significant legacy for the next generation.

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