Tag Archives: black economics

Financial Planning; Short Term Plans, Long Term Actions.

Financial Post 2

Financial illiteracy has plagued and largely impacted the African-American community for many generations. Most of us are lacking when it comes to the understanding of how money works and how to efficiently manage and build wealth. Our impoverished communities continue to rest in this state because there is no transfer of wealth. Wealth continues to be held and dominated outside of our communities because of our low receptivity to financial literacy. Though the tides are beginning to turn on this matter as awareness grows, we as a people still have quite a ways to go. How do we regain prosperity? How do we bring it back to our communities and families? How do we protect it and keep it? How do we go from “new money” to “old money?”

Every great accomplishment begins with careful and strategic planning. While planning may be the answer, it may NOT be the solution. Integrated financial planning as the answer only becomes the solution when it is followed through. You need a plan, it begins with a plan! Wealth building is an ongoing process of structured forced, systematic, efficient and consistent saving habits.

While having a generous income does help, it is not entirely about how much money you make or the lack there of. It is about having the discipline to start today with a meaningful amount that you can commit to monthly or annually regardless of your economic status. Truth is there will always be a reason or rather an excuse NOT to save or invest. You have to conquer that need of immediate gratification by giving up the things you want now, to invest in what you will need in the future. Don’t put it off any longer because there is a huge cost in waiting. Time is our most valuable asset as well as our biggest liability. Due to compound interest of returns over time, essentially the more time you have or the sooner you begin to save, the less it will cost you to achieve your financial goals.

Find a trusted and competent advisor to help you with your financial planning. Google makes it very easy to self-educate, so I am sure that most of us are well capable of doing our own planning. One of the biggest reasons that I recommend you leave it to a professional is that we all have emotional attachments to our money, believe it or not. When it comes to money most of our decisions are made based on emotions and feelings, rather than logic. I have found it to be very helpful to have a fellow colleague as my advisor even though I am in the profession as well. It gives you someone to hold you accountable and to help take out the emotions to make sound financial decisions.

This is my last bit of advice and what I believe will catapult your finances to new unseen levels; pay God first. First and foremost, even before you save or spend, pay God what is due to him. As a devout Christian, I believe that being a faithful tithe payer is imperative to our financial success. With EVERY increase the bible says to give10% to the house of the Lord. In fact it is one of the few areas in our lives that God says “TEST ME!” (Malachi 3:10).

Financial Post

Questions & Inquiries

Laud K. Anderson

Website: Laudanderson.nm.com

Email: Laud.anderson@nm.com

Phone: 732-310-6697

Pray, Plan, Persist

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Book Review: Our Black Year.

OurBlackYear

“..because you are dealing with a Black people who are inflicted with their own sense of inferiority.”

Maggie Anderson tells us the small story of feeling frustrated about the economic conditions of Black people. She wanted to make a change. And she did. Deciding to take a huge risk with her family, The Andersons decided that for the next year they would only purchase and support Black businesses. What does that look like? How is that even possible? Our Black Year is the record of their results. Her findings are not only ludicrous, but they also shed light to the biggest elephant in the room: Black people lack capital, which correlates to the oppression that we suffer from every day.

It is obvious that when we need to think about the Black dollar, and how much we are suffering from the lack of investing in our own products, businesses, and communities. This book proves that we have a stronghold on spending power, yet we barely own anything. Strange, right? We have the power to keep designer brands and corporations in business, yet we can’t find ways to fund our own businesses properly.

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Things like leakage, gentrification, urban planning, impoverished neighborhoods, and domination of other ethnic businesses are all discussed in the book for the plight of economic empowerment.

To sum, a very impactful paragraph slapped me in the face:

“These cold realities – that buying from businesses in Black neighborhoods doesn’t necessarily work, that so few Black-owned establishments have shortcomings—become clear in the early days of The Ebony Experiment. Uncovering the reasons why [the experiment] would take longer.

Despite a few points of privilege that needed to be checked (in my copy of the book, I definitely marked and scratched a few of her ideas) Maggie’s experience of simply buying Black for an entire year was filled with many emotional, physical, and mental roller coasters.

With dense research and great references, it is clear that Maggie finds herself torn between the facts and her actual opinion. I noticed that many of her personal statements were contradictory towards the facts that she presented about the state of the Black community and the lower class. I think this distinction is also important in understanding how people can disagree with the how’s and why’s of our institutional state of, well, lack.

I won’t give too much of the book away, because I am URGING folks, as usual, to begin to think about their financial future. This book is definitely a great start to begin to get your mind going about the economic state of the Black community.

Gonna leave you guys with one more gem:

“How will history view this generation of African Americans? Will they say that we had it all, that we made headway in corporate America and in the legal and educational arenas, but we earned our individual success and left our neighborhoods for disrespectful outsiders to raid? Will they say that we sold our history, potential, dreams, and destiny in exchange for the comforts of suburban life, shunning our own entrepreneurs and professionals, and treating them with condescension? Did we squander our chances? Fail to deliver on so much promise?”

Happy reading!

Understanding Your Finances.

personal-finance

I was reading a blog post the other day about a woman who shared her debt-free testimony. She talked about how she took on two jobs to pay off her student loans and credit card debt. Through her experiences, she also managed to save enough money to begin investing and afford a mortgage on a new house. Epic, right? I then looked at the comments and saw this interesting post:

“I don’t consider this article to be pretty accurate because we do not know her wages or her financial situation to determine that she made enough money to do all of this.”

Um, what?!?!?!?

Understanding your personal finances are extremely important in your beginning steps of educating yourself on accumulating wealth. We all tend to have this idea that it is not possible to become wealthier because we aren’t in the same position as one who began their journeys as well. THAT IS NOT ALL THE WAY TRUE.

One habit that needs to be broken is checking the other person’s pocket for their status. We MUST work on our own.

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We need to begin to look at our financial status for what it is and where we essentially want it to go. It is the FIRST and ONLY way. Decoding what we have and what we can do is the first problem, so getting these questions answered should be your preliminary step:

1. How much money do I currently make?

2. How much debt do I have?

3. How much money do I have saved?

4. How much money do I spend?

I encourage you to write down on a piece of paper the answers to these questions. Having a clear understanding of your personal numbers should make the wheels begin to turn in your head. Knowing where you stand and what you need to do is the essential part in gaining more.

So to begin, our initial process of learning our current financial status actually begins with these questions at hand. Let us use these numbers for our next sessions about how we can increase our earnings, and decrease our spending and other bad habits.

 

p.s: feel free to share any of your numbers and your realizations through this process! We can all learn from each other if we are open with each other.