Have you built a lasting legacy? I haven't, even though I've tried! I created a comfortable life but not financial wealth for generations. Today, I know why.

I wrote this book chronicling my mistakes, hoping you can avoid them. I hope you can learn from my experiences and forge your path to generational wealth. It comes down to the importance of value creation, your morals, your mind, and access to money—mastering all three is vital to leaving a lasting impact.

What’s my Lesson?

Capital flows like water, always seeking a path forward. Just as water naturally moves from higher ground toward the stability of the ocean, money gravitates toward individuals and groups that create the most value. Those unable to generate results will see their share diminish over time.

Because of this enormous force money can create, capital grows faster than labor. Statistics show that those who leverage financial capital to create more value will always outpace those who rely solely on their labor. Without a clear vision and access to capital, labor is limited in its ability to create more value and ultimately build lasting wealth. Labor, unlike capital, is bound by physical and temporal constraints. A person’s time and energy are finite, and even the hardest work has limitations on how much it can achieve alone. On the other hand, capital is fluid and scalable, enabling investments in technology, infrastructure, and innovation that multiply value far beyond individual effort. While labor is essential in the value-creation process, without the compounding power of capital, its potential remains tethered to the hours in a day and the individual's capacity.

It's a simple equation: capital that flows to value creators will multiply, and money that flows to those who don't create value will eventually disappear. With the right values, mindset, and money, one can unlock a world of opportunity for many and build lasting wealth for many.

What is Capital?

Capital is any resource, usually money or assets, that can be used to generate more wealth. It includes financial investments, equipment, property, and even human labor (human capital) and intellectual assets that individuals or businesses leverage to create value, grow businesses, or drive economic activity. Unlike labor, which is tied to human effort and time, capital can multiply and grow through strategic investments and reinvestment. It is a key driver of wealth creation and economic development.

What is Labor?

When we look at all the people working hard on a treadmill of jobs to provide for their families, we realize they are entirely unaware that they could be doing something completely different. Instead of trading in their time for money, they could leverage capital to make money work for them and create wealth for generations. The book Wealth of Generations reflects on this opportunity by speaking to the average investor, suggesting becoming a sophisticated investor who can produce assets that will provide income for them to ‘make a living.’ In 2020, we saw what a global COVID-19 pandemic could do to our economy, and we have experienced a different reality at work and in our homes. Many have permanently changed their lives to focus on family and friends. So, have we started to re-focus on The Wealth of our Generations?

What’s the Secret?

Our capitalistic system's little secret is that capital grows faster than salaries and wages. So, people working for money have been losing the race to build wealth against those who use financial capital to create wealth. The gap between individuals leveraging financial capital and workers grows each year. Technological advances are accelerating this trend, and the value of skilled labor is declining each year.*)

Consequently, our precious democracy seems to turn into an oligarchy. Power would then rest with a small group of people distinguished by wealth, education, corporate, political, or military control. A few families would control our society, passing their influence from generation to generation. Is this what we want?

Today, the fundamental principle of traditional capitalism, the concept of skilled labor, is at stake. We stand at a critical juncture in history between the traditional labor-based economy and a new era that prioritizes value creation and generational wealth. In the labor economy, wealth accumulation was tied primarily to wages and the ability to work. However, as capital grows faster than wages, the wealth gap has widened, with those leveraging financial capital seeing their fortunes expand far more rapidly than workers who rely solely on their labor ​(SpringerLink, Stanford Graduate School of Business).

Technological advancements and market concentration have accelerated this shift, pushing us toward an economy where success is no longer defined by time spent working but by the ability to create and invest in scalable value. This transition signals a broader move toward a system where financial acumen, asset ownership, and investments in capital drive wealth accumulation, leaving traditional labor increasingly behind.

Footnote:

*) solid evidence supports the idea that capital grows faster than wages, leading to a widening wealth gap between capital owners and workers. Economist Thomas Piketty famously demonstrated that the return on capital (such as investments, property, and financial assets) tends to exceed the rate of economic growth and wage increases. This means wealth accumulates more rapidly for those who own capital than those who rely solely on labor, exacerbating inequality over time​(SpringerLink).

Moreover, research shows that as large corporations grow, a more significant share of value-added goes to capital rather than labor, particularly in industries dominated by technological advancements. As a result, labor’s share of national income has decreased significantly, from 60% in 1980 to about 40% today, with capital absorbing much of the difference​(Stanford Graduate School of Business ). This shift is driven by factors like automation, where technology increasingly replaces certain jobs, diminishing the value of skilled labor while boosting capital gains for business owners and investors.

Technological progress and market concentration are accelerating this trend. Large, successful firms—like tech giants—allocate higher profits to capital, further widening the gap between capital owners and wage earners​(Stanford Graduate School of Business). This dynamic underpins the increasing disparity between those leveraging financial capital and traditional wage workers.