So, it’s Black History month and I want to commemorate it by opening some discussions on something that is definitely historical and concerning minorities, especially African Americans. Did you know that studies have shown that black people in America have a harder time accumulating wealth than any other race? You may be saying “well, yes I have heard that” but the statistics are staggering according to several reports including a CNBC article that stated only 34% of blacks invest in the market compared to 61% of whites. This also includes saving for retirement.
Now lack of investing is not the only reason for the wealth gap but it’s definitely a factor that can be changed with education and access to resources and opportunities. As it stands the wealth gap is only widening with each passing day. This is largely due these four main things, lack of financial literacy, professional training opportunities, personal development and strategic diversified investments.
Now, instead of just reporting the news, I feel it’s my obligation to share some insight that I’ve learned as an experienced investor with a heart to help simplify what at one time was just for the elite. These concepts are now commonplace and accessible for the average person which is multiplying your money without physical labor. This will help effectively narrow the wealth gap for black people in America. Here are four ways minorities can combat the widening wealth gap:
- Invest in personal development. This is one of the most important things you can do. When we take care of themselves spiritually, emotionally, mentally and physically we become more responsible for our families and communities. Also, investing in your mind goes deeper than prayer and meditation. This can also mean getting some non-traditional education or finding new tools to be more effective with all the resources available and accessible. Times are rapidly changing where investing in college education alone may not be enough to help you acquire a growth mindset or your bank account. You have to be open to new ways of thinking about money. Many African Americans are used to trading our hours for dollars instead of putting our dollars to work. So, reading or listening to personal development books, audios and training even if it’s on YouTube is a must. Doing this at least 30 minutes a day to grow your knowledge and emotional intelligence will assist in keeping in the know with current events and strategies that’s working now to grow wealth. As well as keeping you prepared to handle life’s challenges giving the motivation and inspiration needed to prosper.
- Invest in a tech savvy business. We all know the struggle of breaking into a highly-competitive industry and making an impression. But what if I told you there was a way for people in black communities not only to get their foot inside those doors but also to keep them open? Starting or growing your own business that serves a need for today’s times is essential to closing the wealth gap. No matter the type of industry, this especially includes e-commerce, social media servicers and influencers. Becoming tech savvy gives one access and better real time control in having a profitable business. This helps a business become digitally sound. If you are one needing loans to leverage banks money to expand your business. This is how most lenders and financial institutions communicate with their customers. So, creating a digital marketing and operations plan for your business is a smart way to go for Blacks who want a piece of the American Pie going forward.
- Start a Family Bank. Not everyone is confident in high-risk investments and many are concerned about losing their hard earned money and just want to keep their money safe. Rightfully so, it’s highly recommended never to invest in things that’s difficult to understand. This is why starting a Family Bank is one of the safest yet underutilized wealth building tools available. Family Banking is derived from the IBC (Infinite Banking Concept) which offers a guaranteed return on your investments with none of the risk associated with traditional banks! You can create cash flow and have full authority to decide how, when, and where your money goes all by yourself. You can start an account, typically a whole life insurance policy, and borrow against the cash accumulation. The traditional banks are giving very lean returns on the money you deposit today but creating your banking system means you can receive returns that have outperformed the SP 500 for years with safeguards to prevent losses. It’s a great way to grow money with tax benefits.
- Create diverse passive income streams. You might think that you’re a one-trick pony and your financial future is limited if you were to watch the news reports about the stock market. But there are always cycles where some investments may do well while others may not. So it’s important to understand the power of diversification of a portfolio. There are 7 different asset classes to consider when investing: cash, equity (stocks), bonds, real estate, commodities such as gold or oil — which can be traded at any time. You also have collectibles like art pieces which may not seem related but they share some similarities because both require long-term investment strategies for success. As well as the fastest growing digital asset class which includes crypto currency, NFTs and e-commerce business like mentioned above. The simple fact of the matter is to make it a goal to connect with financial professionals who have your best interest at heart. Unlike getting your personal development training, don’t rely mainly on YouTube. Ownership must become a priority for African Americans in order to close the wealth gap. We can encourage getting serious about creating generational wealth ourselves and loved ones. It’s time to start thinking outside the box.
I’ve given you as much information in this post as possible. Although this in no way serves as financial advice. I hope this inspires you to want more knowledge to empower yourself and others. There are several other ways to get started on your journey to financial independence and freedom. If you know where to start? Schedule a coaching session with me. I’ll help you create a personalized plan that meets your specific needs and goals. Let’s work together to close the wealth gap for minorities in America!