Gold Every Time

Leveling the Financial Hump

According to the US Census Bureau in 2021, the median income for Black Americans was $48,297, approximately $3k less than Native Americans and nearly $26k less than white Americans. With disparities everywhere from education to employment, these numbers are not a shock, but with some adjustments to our priorities in schools, the workplace, and our homes, we could make a huge impact on increasing financial literacy amongst Black people in the U.S.

The racial wealth gap is influenced by systematic inequality, lack of financial literacy, and discrimination in salary and employment so closing the gap is not going to be a simple fix. Aside from instilling a good relationship with money in our children, we can facilitate programs that emphasize financial literacy and financial wellness. With new found knowledge & understanding we would be able to better navigate financial decisions that we are faced with in the normal course of life. Hopefully at some point in the future putting the phrase "rob Peter to pay Paul" to bed.

FINANCE CHALLENGE

Join us on the 6-week journey to building a healthy relationship with money. This week we arestarting with quick tips & reminders to help you manage your personal finances better.

Understanding digital currency

There is no real answer to "Which crypto should I buy". We will explore 4 types of crypto this month and by the end of this journey you will be able to make a more informed decision.

1. Utility - Meant to provide access to platform where it resides. Ex: Golem, Funfair, Brickblock

2. Payment Tokens - Used for paying for goods & services in and out of their own platforms. Ex: Bitcoin & Ethereum.

3. NFT (non-fungible token) - Limited issuance and are hard to copy and replicate. Ex: Beeple's art,

4. Security Tokens - Usage and issuance is governed by financial regulation. Ex: Sia Funds

Money management

Here are 3 basic rules of thumb to manage your money.

1. Plan your money. Plan your future, plan expenses (vacation, dates, piano lessons), plan for major purchases (home, car, rental property).

2. Set financial goals. Write down short, mid, and long term goals. Review your goals often. Do not change your goal so that you can go to the movies, skip the movies so that you can meet your goals.

3. Consciously save. If you can, save 5-10% of your net income. Save 6 months for an emergency fund.

Here are the 3 basic types of life insurance policies, simplified. #'s 1&2 only expire if you stop paying. If you have enough cash value, you can use that to pay #2's premiums. #3 expires at the selected term ends OR it increases 10x the amount you purchased at.

Insurance

1. Whole life insurance - $$ - Long term savings and potential living benefits. A portion of your premium (monthly payment) goes into saved cash value which can be later used to buy anything or take a loan.

2. Universal life insurance - $$$ - Tax deferred. You can decrease monthly payments if you need.

3. Term life insurance - Expires after term ends (5-30 years). No cash value. You can buy more insurance at amuch lower rate! Cheapest of the three options.

3 Business Grants for the new Entrepreneur

FEDEX SMALL BUSINESS GRANT

Typically, any eligible for-profit small business with a FedEx shipping account number that has been in continuous operation selling a product in market for at least six (6) months by the time the contest starts , has fewer than 99 employees.

THE SECOND SERVICE FOUNDATION

Applicant must be a 21+ US veteran, reserve or transitioning active duty member of any of the United States Armed Forces, a spouse of a military member or the child or immediate family member of a Military Member who died on active duty (i.e., a "Gold Star" family member)

NAACP GRANTS

NAACP believes in the power of Black entrepreneurship. We partner with several organizations to provide grants for Blackowned businesses.