Kendra Y. Hill grew up in poverty with no financial literacy and had a ‘poverty mindset.’ She also had large amounts of credit card debt and struggled to pay it off when she was 18 years. However, things turned around for her when she decided to get serious about creating generational wealth.
This inspired her to start her own business in 2011 and spent the next nine years building generational wealth. Through a number of habits, she successfully hit $2 million in less than a year during the pandemic, through her consulting firm (Kendra Scale My Business) that helps social media creators monetize their content, according to Business Insider.
Hill was formerly with Google but now works as a business consultant, talent manager and turning entrepreneurs into millionaires.
Here are five habits we can learn from Hills to build generational wealth.
1. To maintain her wealth, Hill creates an earning plan for each week and regularly checks her cash flows. She makes monthly expenses of about $12,000. According to her, at the end of every month, she maps out what she is going to sell for her business in the following month. She then maps out week by week what she will be selling, at what price and how to promote that on social media.
2. Hill’s expenses plan also includes “fun spending.” She gives herself large discretionary spending amounting to some $30,000 monthly for “fun things” like movies or eating out.
“Even then, I try not to spend that money,” she told Insider. “If I wanna do something extra, I take it from that money. I’m not someone who believes in depriving myself of things.”
According to Hill, giving herself a large discretionary spending plan gives her the peace of mind to get whatever she wants without ‘upsetting’ her budget.
3. Hill underscores the need to separate her business expenses from her personal expenses. She recalled personally paying the expenses of her book tour when she could have paid from her business account.
“Sometimes, when you want to test something, don’t put it on your company to test it. Invest your own money. The more of your own money you invest in things, the more indebted you feel to your own victory,” she said.
4. Another money habit for Hill is setting an alert for any credit card transaction over $10 to track her expenses. While $10 may seem insignificant, Hill noted that the move keeps her humble. The text notifications, she added, also keep her from overspending and going back to her old ways of excessive spending.
She said, “Just because you have money, doesn’t mean you have to spend all of it, or hoard all of it. There needs to be a balance between overspending and over-hoarding because both of them are bad.”
5. Last but most importantly, she is guided by the divine saying of “give and ye shall receive.” According to her, she gives away almost 90% of her designer clothes and luxury pieces each year to people who need them.
“If you’re holding onto your money and material things so tight that you never release it, you literally have no room to receive,” she said.