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  • Writer's pictureJames Veal

Top 10 Things Black People Need to Know About Money

10. Credit Cards

Believe it or not, #creditcards can be an asset but in most cases, they are a lia-

bility because the majority of people abuse them by spending, spending, and

more spending. #Credit is King if you plan to buy #Assets with it.

9. Emergency Fund

No matter how well you plan, life will always throw us a few curve balls from

left field. Since there is the realization that something will happen, having an

emergency fund is an essential part of your financial plan. Have at least three

months income saved in an emergency account.

8. Inflation

There is a special name for inflation. Can you guess what it is? Well, let me help

you out. When you go to the supermarkets these days, notice the prices

of chicken, paper towels, juices, fruits, fish, etc? Also, have you noticed the price

of gas, stamps, paper, a college education and so on. Yes, the prices of most of

these items have increased. That special name for inflation is also called

"the silent killer." The reasoning behind the name is because you can't see, hear,

taste, or smell it. But it's there! Your wallet and purse feels most of that pain.

7. Employer Contributions

Many employees miss out on a great opportunity to build wealth by not par-

ticipating in their company's 401(k), 403(b), and 457 deferred compensation

plans at work. Some of these plans even match a percentage of what you put

in each month which helps you build a smaller fortune much sooner. Make

sure you take advantage of these plans ASAP. The sooner you start the richer

you'll become.

6. Taxes

Taxes is a necessary evil in the U.S. but there are strategies to pay less and/or

delay them. For example, you do not pay taxes if you're contributing to an

employer's 401(k) plan or to an individual IRA account. The beauty of this tactic

is that as your portfolio grows, you are not required to to pay taxes until you

begin withdrawing from it.

5. Personal Investments

The average U.S. citizen saves less than $2,000 per year. The average net worth

of an #AfricanAmerican is $2,000. That is pitiful! The problem is that most

people live beyond their means and spend more than what they bring in. This

behavior only leads to living from paycheck-to-paycheck and eventually in

poverty. Saving and investing is essential if you want to build your net worth.

4. Life Insurance

Is your home insured? Is your car insured? They probably are. Is your life

insured? Its probably not and if so, it's probably not enough. The greatest

strategy for generational #wealth transfer is through #lifeinsurance. It is a

a product that is relatively low in cost that combats a potentially expensive

unexpected loss - such as the death of the breadwinner. Most people should

have enough life insurance to cover the remaining mortgage, college tuition,

credit card debt, and salary (yearly) until the age of 67.

3. Spending

The #AfricanAmerican community spends well over $1 trillion dollars every

year. Unbelievable! We are on the lowest financial data polls when it comes to

unemployment, lower wage jobs, net worth, education, and poverty? If this

group was a country, we would be the 16th wealthiest on the face of the earth.

That tells me we have money but we spend it on junk, material things, and

non-producing assets. We cannot spend ourselves out of debt and/or poverty.

2. Wealth Creation

It is no longer cool to think, "go to college, get a good education, graduate

and find a job." Those days are over as an African American living in the U.S.

Our mission has to change and now we have to get a good education, learn

more relationship skills, network, read, self-learn and create a job. We have to

think entrepreneurship!

  1. Business Ownership

The best strategy anyone can use today to become wealthy is by owning

and running your very own business. Learn as much as you can in the real

world, find your passion where there's a need, and fulfill that solution.

Most businesses fail because there is no plan, no market, no need, and

lack the necessary skills to run a business. If you think your 9-to-5 is hard,

running a business is ten times harder. It is more like a 7-to-9.

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