Three Financial Steps to Take During Black History Month

Filed under: Dr. Boyce Money

One of the great challenges for the black community is that we are not quite where we'd like to be economically. Having freedom is not the same as having independence, and although black people were liberated from slavery 150 years ago, we have not yet felt the sweetness of economic independence: Our unemployment rate is nearly double that of white Americans, in large part because white Americans are the owners of the businesses that are granting the jobs. Median black family wealth is roughly 1/10 that of white American families because we've been stripped of the right to create intergenerational wealth and have also developed economic habits that continue to make it difficult for us to break the cycle.

Given that we are in Black History Month, I thought I would lay out three financial things you can do during the month that might make your life a little more liberated, and also give you the chance to start making black history yourself:

1) Consider ways to obtain multiple streams of income: No matter how much money you make, you're never safe if you've only got one stream of income. The loss of a job can be devastating, and we are always at risk if everything we need is coming from one source. Look into finding another source of income, whether it comes from taking a second job on the weekends, or selling something that you know others will buy, whatever the case may be. When my career as a public scholar created a great deal of professional risk for me at Syracuse University (people worked to have me fired after Bill O'Reilly came after me), I found that having diversified revenue streams really saved me on multiple occasions.

2) Make sure your kids learn something about entrepeneurship: Don't just teach your kids to grow up and get a job -- teach them how to create a job. Finding simple websites on the basics of starting a business might be a great start.

3) Automate your savings account: Saving is harder to do when you have to think about it. I recommend setting up an automatic deduction from your paycheck that goes into your savings or retirement account. Saving has to become a regular part of your financial management process, especially as it pertains to old age. Most Americans are not prepared for retirement, and the government is not going to take care of you when you get older.

Taking baby steps is the key to making your life a little bit better financially. It's not easy out there for any of us, but at the very least, becoming conscious of damaging financial habits is the first step toward improving your life. Black History Month is a great time to get started, because within the context of studying black history, we are also preparing for a black future. Let's try to make that future into a good one.

Dr. Boyce Watkins is the founder of the Your Black World Coalition and a Scholarship in Action Resident of the Institute for Black Public Policy. To have Dr. Boyce commentary delivered to your email, please click here.

 

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