I was thinking the other day about wealth building in the African American community. Pessimists say that black people don’t have much wealth to work with, and that building with what we’ve got is a lost cause. This is, in my opinion, fundamentally and entirely untrue.
I’ve spent some time analyzing and processing where we are as a community and how we can improve our economic plight. Given that African Americans are such a steady source of income for so many other communities, only true insanity would lead us to believe that we don’t have the ability to finance our own liberation.
For those who believe in the power of blackness, I wanted to lay out three things we can all do right now to improve our plight as it relates to wealth:
1) Spend a larger percentage of our income with black-owned businesses – When you keep your money in your own community, the circulation of these funds is tantamount to money raining from the sky.
Think of money like a bike. If a child with three friends is given a bike and then hands over that bike to someone he doesn’t know, the bike may disappear forever. But if he gives the bike to one of his three friends, each of these friends can give the bike to each other over and over again, and will therefore always have a ride. Money is not intended to be a short-lived and perishable commodity. It is meant to be used over and over again.
2) Start participating in the stock market – The biggest reason for the gap in wealth between the rich and everyone else is almost entirely defined by stock market participation. In The Black Business School, the first thing we do is show you how to buy your first share of stock and I discuss this matter in The Black Wealth Bootcamp as well. Owning stock is as easy as buying pairs of shoes. There is no reason for us not to participate.
3) Never die without life insurance – Life insurance is affordable for most of us, and easy to obtain. By ensuring that you and your loved ones have insurance in place, you can pass hundreds of thousands of dollars right down to your children.
The bottom line is that WE CAN DO THIS. Never let anyone believe that your community is a charity case, because this is fundamentally untrue. The fact of the matter is that by sticking together and giving it everything we’ve got, we can rise, build, grow and conquer. That’s what being black is all about.
Dr Boyce Watkins is a Finance PhD and founder of TheBlackWealthBootcamp.com. If you’d like to ask Dr Watkins any financial question that you desire, please feel free to sign up in his coaching program at AskDrBoyce.com. Use the code WeCanDoIt to get 40% off the monthly fee both now and forever. You can take advantage of the offer by visiting this link.