In Permanent Ink: How to Build Generational Wealth for Your Family

Luz Blando is a mother and successful entrepreneur, navigating the challenges of financial planning. With the assistance of Gail Lewis, a VyStar@Work Business Development Leader, Luz learns how to take a more structured approach to managing her finances.

Taking Charge of Uncertain Earnings

As a cosmetic and medical tattoo artist, Luz faces fluctuating income due to the variable nature of her business. She recognizes the need for financial planning to ensure stability for herself and her son. "I wanted to join because with my business, sometimes I have busy months and other months are not as busy, and that always scares me a little bit," she said. For Luz, the challenge of variable earnings underscores the importance of creating robust savings and retirement strategies.

The Role of Financial Education

Financial education is at the heart of Luz's journey. Gail emphasizes, "You can only have generational wealth if you build that wealth through financial education." By attending VyStar's workshops, Luz aims to equip herself with the knowledge needed to manage her finances effectively. Just as important, Luz hopes to pass this knowledge onto her 10-year-old son to instill these principles early in his life for a better financial future.

Budgeting for Stability and Growth

Through tailored advice, Gail points out that Luz's focus should not just be on budgeting but also on planning for the future. Gail advises, “Add yourself as a line item. Pay yourself first, invest in yourself and make room for retirement savings and emergency savings.” By understanding where her money is going and identifying unnecessary expenses — or "leaks" as Gail calls them — Luz can direct funds towards more purposeful needs and dreams.

Implementing the 50-30-20 Rule

The 50-30-20 rule serves as a guide in Luz’s financial journey. Gail outlines the rule: 50% of income goes toward needs, 30% toward wants and, importantly, Luz should allocate 20% toward retirement and emergencies. This structured approach ensures that Luz can weather any business slowdowns while preparing for long-term goals like retirement.

Engaging the Next Generation

With a focus on generational wealth creation, engaging children in financial education is vital. Luz plans to open a Youth Savings Account for her son, incorporating fun resources into their learning. Gail provides a financial booklet designed for children, complete with money terminologies and games. This approach encourages a hands-on learning experience that can set the foundation for her son's financial wellness.

Planning for the Unexpected

Preparing for the unexpected is another aspect Luz hopes to address. Understanding the importance of safeguarding her child's future, Gail connects her with VyStar’s insurance department. Through tailored policies, Luz hopes to ensure her son is cared for, no matter what life throws their way.

A Continued Journey Towards Financial Empowerment

Luz Blando's story epitomizes the journey toward financial empowerment and stability. Through education and strategic planning Luz is enhancing her financial knowledge and paving a better path for her son's financial future. With resources like VyStar's Financial Fitness classes and practical tools like the budget calculator, Luz steps forward with more confidence and clarity. As she puts it, embracing this journey is about making informed decisions to "maximize the income that [she does] have" and fulfilling her goal of creating a lasting legacy for her family.

For those looking to embark on a similar path, the VyStar Savings Challenge offers both the motivation and resources needed to achieve financial goals. As Luz delves deeper into her financial education, we look forward to checking back in to see her progress in the coming weeks.

Update:

See how Luz has fared after participating in the VyStar Savings Challenge.