Financial planning is a vital discipline you’ll need to learn if you want to conquer your monetary goals. African Americans in particular must work to rein in excessive spending and rising debt while redirecting that money towards building assets.
Statistics reflect that Black Americans spend trillions of dollars yearly.
This “buying power” isn’t necessarily a good thing if it’s recreational spending that could be otherwise allocated towards building wealth.
Even with this magnificent “buying power” Black Americans are still suffering a widening wealth gap when compared to other racial groups.
If African Americans ever want to stake a claim towards increasing generational wealth & assets, our spending behavior must be redirected to saving, investing and supporting black owned businesses when we do decide to spend.
In this article, we are going to highlight…
3 quick financial planning tips for African Americans to help make your finances work from you.
1) Become Your Own Financial Expert
One of the first and key ways to quicken financial planning for African Americans is for us to become fluent in our own financial decisions. This can be accomplished by reading at least one book a month on money management, investing and insurance.
Money management is one of the maximum vital abilities African American can develop.
Unfortunately, many African Americans lack the maximum basic cash management abilities for one reason or another.
It’s why we see such a lot of issues with credit score, card debt, student loans and lack of retirement planning. In maximum cases the abilities needed to fix matters are very simple and may be picked up in no time.
Ensure you read an educational book on how to save money, invest, and spend less in order to become a good financial expert. In this way, you stand the chance of controlling your own finances.
Furthermore, investment and insurance ideas, techniques form the basis for investing choices. It is essential that African Americans seek out professional financial advisors to offer advice for services that help to build short- term and long-term investing plans; those plans are regularly based totally on asset, risk and modern-day portfolio concepts.
Similarly, books on finance management can empower the financial planning for African Americans as it would aid to manage a budget, save for retirement, get out of debt and address many other cash-associated selections with self-confidence.
2) Use Money Management Software
In our high technological country today, there are readily available solutions to managing your money!
Although it may frequently appear rather difficult to accomplish, money management software offers an easy and free manner to monitor your financial planning.
If you do not use any kind of software program to control your money, then maybe it’s about time you strongly consider it.
Financial software allows good money management habits to develop by keeping track of what you earn, and helping you to avoid spending more than you want to every week or month. All it takes is a little bit of a time and effort every day.
Creating a free account on Mint.com is a highly recommended online money management software that will serve you greatly.
With over 15 million users, Mint.com is an easy finance program that’s net-based totally. It’s free to sign up, and it takes only some seconds to sychronize accounts.
As a financial planning step for African Americans, you can aggregate banking, credit cards, loans and investing brokerage accounts.
In addition to that, every time you go to the website, your financial records get updated automatically. Mint gives your transaction reports in a slick, easy-to-use web interface, with graphs and all.
Mint.com is very helpful for such things as budgeting, growing goals and aggregating all of your financial money owed all in a single space. Mint’s dashboard gives a short summary of your financial positions at a glance.
3) Learn To Create New Income Streams
Don’t have enough money coming in? Get a side-hustle!
Statistics have shown that 37% of Americans have a side-hustle, with Black Americans leading the way.
Creating new sources of income is an activity used the richest people all over the Earth, so why shouldn’t you join the club and diversify your income streams?
There are many ways in which you can earn passive income both on the internet and off.
One of the many advantages of working and earning money on the internet is that you can work practically anytime you want, any place you want.
Using the internet you can begin earning from more than one source with no problem and double or even triple your earnings in the shortest time possible.
You may also diversify the methods that use, along with earning via affiliate marketing, blogging, selling products on Amazon for eBay.
Affiliate promotion and starting a blog are two of the most favored methods to creating multiple earning streams. However it can take a year or two before you’ll see a steady flow of profits.
Digital marketing is quite the opportunity for African Americans to take on as a side-hustle. It’s a market that is completely under served and offers tremendous benefits. There are very little digital products available online that are produced by Black Americans specifically for Black Americans.
It wouldn’t take much to write a short e-book, create a video course, do live streams or webinars that would teach, train or entertain African Americans.
By putting these quick financial tips into practice you will raise your understanding of financial planning, easily manage your dollars and even establish additional income sources.
The only way for the Black Community to close the wealth gap in America is to do it one person at time, starting with you. God Bless!
