So we all know that white america has more wealth than black families. However did you know we are the last race to invest. I have found that many black people are afraid of the stock market and run away at the thought of investing. I will try with all my might to break down investing and how easy it can be for not only beginners but people with little money.
Before I started my blog, I listened to Dave Ramsey radio station everyday at work. His method states that you should first get out of debt then start investing. And that is great but I am going to challenge you to do both. Look at your debt and obviously start paying off the one with the highest interest and slowly introduce the idea of investing. Example of what that looks like is:
Car loan is $329 at 4% interest. Start paying $350 and an extra $50 at the end of the month( I notice the more small payments you make to debt rather than massive chunks it feels easier rather than a burden). Then get a mutual fund or portfolio account and invest small change in it. Confused on how to get a fund started… keep reading
I LOVE this thing, I started investing with it about a year ago. I just did the min, invested my spare change and now I have $471 in it. Which I know your like that was more than spare change, and yes your right sometimes I would add $25 in it from random refunds and bonuses from apps. But for the most part its spare change. I have earned 8.56% which is a return of $37.15.
DO THE MATH
So if my car interest rate is 4% and I just earned 8% on my money in my acorns account then I am not only earning more money I am getting out of debt. WIN WIN!!! You must make sure you have a balance, I shouldn’t have $20,000 in my acorns account and owe $10,000 on my car. That’s when the math gets out of whack. The stock market shouldn’t scare you if you use the method of warren buffet, “Successful Investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time: You can’t produce a baby in one month by getting nine women pregnant.” Slow and steady wins the race so investing small amounts over a long period will gain you more money then waiting until your 50 and investing large chunks of money.
So its the 21 century and we no longer have to walk into a dreadful investing firm, that makes you feel stupid and that you don’t have enough money to invest. You can literally download an app on your phone and begin right away. Use this code and get $5 to start your account acorns.com/invite/YCGCCH . I literally tell people ya I have real estate stock I own some apple stock and whatever else is in my portfolio. I had 0 experience in stock owning and it was breeze to start securing my future. Now is this the only place I invest.. no and it shouldn’t be for you either. But lets just take baby steps for now!