With all the financial advice now available, it’s easy to get confused. Credit card reduction companies and various investment strategies that are sometimes scams. They often hunt for the financial ignorance of a population obsessed with consumption, but hate budgets and save. According to Nielson, black people read more financial magazines 28% more than any other group, but as a group they are left behind in wealth and resources.
In terms of wealth, that is, home value, what you earn after all bills are paid, retirement account, emergency savings and stocks and other interests, the black and white inequality is overwhelming! According to the Washington Post, blacks in stocks, bonds and other holding companies have $ 180,000, $ 1,100. We could discuss all statistics and inequalities, but today I would rather focus on the potential.
The starting point is to have the right mentality to develop wealth. Understand that wealth is a gradual process based on practical economic decisions where compound interest increases your reach and lifestyle decisions protect you from outside circumstances. You should already know that my first rule is to live under your means, if possible far below. This has to be repeated and emphasized, as simple as it sounds, because of the constant need to live big or keep up with the Joneses in American society.
The next question is after you have lived below your means, which allows you to create emergency savings, what should I do with my excess cash? Anyone who builds wealth should always look for ways to make their money work for them. You may want to invest in your own business or a family business. You may want to invest in real estate. We just quoted the difference in stock. Don’t be afraid to jump in. Do your research thoroughly but take action. You can invest in the companies you already spend money on that you love. See if they have drip accounts. With a drip account, you can invest in stocks with just $ 25.
I have to bring it back to a story I read 3 years ago. Mr. Earl Crowly worked as a parking attendant for 40 years, never earning more than $ 12 an hour, but managed to build a $ 500,000 equity portfolio using drip accounts! This was his wealth strategy! You could use it for yourself and add other strategies with it. Mr. Crawley has no credit card debt and I believe his house was paid. Although he wasn’t a millionaire at the time of the report, he probably is now. If not, it doesn’t matter as he has laid out a capital base and strategy for his kids to follow from just $ 12 an hour! Mr. Crowley is the perfect example of The Trillionaire Next Door. I know he lived under his income, based on his income he had no choice, but I have saved and invested wisely! It just proves my point that hardworking people can create a foundation of wealth and financial independence for themselves and their families by defending! It doesn’t matter how much money you make, as long as your thinking is correct. Stop frivolous spending, live under your means, save and make sensible investments.