(ThyBlackMan.com) It’s no secret that African-Americans have been exploited financially in America. It was only a few decades ago that phrases like “Negroes and other Undesirables” were written in federal United States housing law, in order to prevent people of color from becoming people of property. The effects of this legislation alone have been felt in all corners of the African-American community, in employment, education, and wealth-building power. Today, the situation is nominally better. But even though some inherently racist policy has been stricken from the official record, African-American people must work harder than members of some other ethnicities, in order to take equal advantage of their rights under the law.
For this reason, financial knowledge is power. Financial literacy isn’t taught in school. And few people can say that we have a firm foundation in this mode of thought from our parents. Nonetheless, there are resources available to begin building this kind of
knowledge, personally and for the benefit of our friends and communities. The internet brings all the information you need to a device near you. But some people just don’t know where to start.
The foundations of sound personal finance are actually pretty simple. It just takes a little reading in each direction to start seeing personal improvement. I would recommend availing yourself of resources related to these topics: debt and personal spending, homeownership, investment.
Debt and Personal Spending. The 2008 financial crisis was largely caused by predatory lenders trying to profit on the ignorance of poor black Americans who were not equipped to afford the homes they bought. It’s sad but it’s true. In order for an individual to create lasting personal wealth, living on debt and credit must be eliminated. Possessions that can be repossessed are not possessions that you own. People who build lasting wealth have to live beneath their means (spending less than they earn) for many years. Getting out of debt is hard, but real people do it. This is the foundation of all future wealth building.
Homeownership. Once your debt is gone or at least manageable, you can start thinking about buying a home. Banks like to give loans to people with steady jobs and decent credit. But if you lack either of these, the federal government still tries to make homeownership possible. After all, the government likes a tax base of homeowners. Homeowners build wealth, because they’re paying themselves (equity) every month, not some other landlord. This wealth makes them less financially exploitable. It makes their children more likely to attend college and move up in society. Homeownership is a goal worthy of some research.
Investment. Investments are made for the short and long term. People invest money for retirement, so they’ll have income when they’re too old to work. People also invest money for short term returns, using platforms like Forex. This Forex Broker provides educational resources in investment, so you can learn about short term investment before you risk any money at all. You can also choose a broker who has a demo account where you can start improving your trading strategies before risking any of your real money. One of the trading platforms who provide a demo account is IQ Option – you can read more about them in the review on business24-7.ae.But investment isn’t always so complicated. Simply choosing to use a dollar to reduce debt rather than spend on something you don’t need is an example of a wise investment. Everything you do with your time and money is an investment. By increasing your financial knowledge, you’ll be more likely to make sure these decisions are wise.
Staff Writer; Mark Joseph