- Introduction
- What is Black Wealth Renaissance?
- Financial Literacy for Black Wealth
- Resources For Financial Literacy Renaissance
- Bottom Line
Introduction
The objective of Black Wealth Renaissance is to encourage black wealth through sharing of helpful resources of building generational wealth. Their uniqueness is in making the information accessible. They simplify complex ideologies that make understanding easier and application faster. Consequently these information spreads with actionable tips and advice to improve financial well-being.
Take control of the narrative and spread the good. Be the good. Financial literacy have the capacity to change lives. Quality growth comes through solid but smart education. Black Wealth Renaissance is changing the black narrative and helping people understand integral basics for successful living. They’re difference makers. It is more than a business and but a message of hope and revival. Because you have the power to change your life with education and financial literacy.
Black Wealth Renaissance sees growth and endless possibilities in black community. Although there is need for greater financial education. They believe as blacks we are better and can do better. Through spreading the word and message of change. For every person who learns more about financial literacy the better our society will become. It is more than being the change. But encouraging others to apply the information they learn so we can lift our communities and help them thrive. Many blacks are rising with great determination not just to build wealth for themselves but as well educate others.
What is Black Wealth Renaissance?
Black Wealth Renaissance is a resource that is more than just a business created by four black entrepreneurs. These entrepreneurs are out to educate the black masses on the importance of group economics, ownership and financial literacy.
The founders of Black Wealth Renaissance are David Bellard, Jared Spiller, Jalen Clark, and Kelly Rhodes. These smart black entrepreneurs understood that by properly educating themselves on financial literacy they could change their path. Consequently their mission to share this information to those who need it as well. Another important aspect is helping lift the black community. How? To direct them on positive wealth options. Secondly show them how to streamline their knowledge and resources to help others grow and learn.
What is Group Economics?
Group Economics is group of people with mutual economic interest. The term refers to groups of people who pool their resources to accomplish something they might not achieve as individuals. This group agrees to create a sustainable economy for themselves via conscious but active pursuit of economic interest together. In the context of the Black community, it is about the importance of creating and supporting Black owned businesses. While in turn these businesses support the larger Black populations. Group Economics is more like Cooperative Economics.
The current economic condition of the Blacks is in critical condition especially in this pandemic. Consequently Black community face challenges of poverty, economic instability, systemic racism and police brutality. Group Economics within the Black American community would be the counter force against these challenges. Consequently a structure for black wealth renaissance.
The urban Black community is epicenter for a Black Group Economics movement. The terrible conditions in Black urban neighborhoods were created by federal and state supported policies. These policies such as Red lining, Block Busting, discriminatory insurance practices and legal housing discrimination created “slums” and “ghettos”. Policies used in the northern cities from 1900s to 1960s. The economic frustrations, configuration and density of Black distressed neighborhoods make them ideal origin for Black Group Economics.
Many communities in America practice group economics. The Jewish, Italian and Asian communities all use Group Economics. It is a form of self preservation. From 1890s – 1920s many thriving black communities successfully used group economics. Wilmington NC, Tulsa and Redwood Florida are the 3 most popular among many others in America. Black Wealth Renaissance is revisiting group economics.
Five Dimensions of Black Group Economics
Accountability & Quality
The businesses must be of the highest quality. But these businesses must be willing to be held accountable for their services and/or products.
Consumer Loyalty
Black consumers must be committed to buying and using products and service of great black businesses. Also consumers must respectfully hold black businesses accountable to maintain their high standards of products and service.
Businesses
Create black owned and run businesses for the Black consumer to purchase from. There must also be plans to replicate businesses owned by people out side of the Black Community with better quality.
Hiring from Group
Business owners must hire from the local community. Black Group Economics is about improving your community. Moreover more job opportunities will reduce the high rate of unemployment. Also it will reduce crime.
Marketing
To make sure their services and products are known, black businesses must actively market themselves. Also marketing is important for creating success modeling for aspiring entrepreneurs.
Changing The Narrative and Becoming a Voice of Change
They want to broadcast something different and better from the negative aspect of black community the media focus on. They want to impact the community so that as each person learns more, they reach out and help others. People are paying attention. With a superb podcast, they’re sharing Black Entrepreneur success stories, and echoing their message loud and clear. In fact, their popular podcast is a top business podcast on the iTunes chart.
Financial Literacy for Black Wealth
What is Financial Literacy?
Financial literacy is the possession of set of skills and knowledge on finance. These financial skills include investing, budgeting and personal financial management. These allows an individual to make informed and effective decisions with all of their financial resources. Moreover, an understanding of basic financial principles allows individuals to know how to navigate in the financial system. Black with appropriate financial literacy training make better financial decisions and manage wealth better than those without such training. Financial illiteracy is the lack of these skills. Individuals with financially literacy are less vulnerable to financial fraud. Consequently, a strong foundation of financial literacy can help support various life goals. Life goals such as starting or running a business, saving for education or retirement, and debt repayment.
Financial products and services have become increasingly prevalent in recent decades. While earlier generations of Americans purchase goods primarily in cash but today it is different. Because various credit products such as credit cards, mortgages, health insurance and student loans are now popular and important. Consequently, this makes it even more important for blacks to understand how to use them responsibly. Given the importance of finance, lacking financial literacy can be very damaging for an individual financial and wealth success.
Protect Your Financial Future
Popular financial skills include household budgeting, learning how to manage and pay off debts, and evaluating the trade-offs between different credit and investment products. However, these skills require at least a working knowledge of assets and liabilities, interest rates, opportunity costs, compound interest and the time value of money. Unfortunately, research shows that financial illiteracy is common in America. The Financial Industry Regulatory Authority (FINRA) estimates that about 66% of Americans lack financial literacy and Blacks have the highest number.
The lack of financial literacy can lead to financial frustration and a number of pitfalls. Financially literate individuals are more likely not to accumulate unsustainable debt burdens but rather build generational wealth. For example, their ability to differentiate assets from liability, informed spending decisions and a long-term preparation. This in turn can protect individuals from becoming victims of financial fraud, debt and bankruptcy. Fortunately, there are now resources for Blacks wishing to educate themselves about the world of finance. Examples of such resources are Black Wealth Renaissance, teejaytrue etc.
Ways to Improve Financial Literacy Skills
Attaining and maintaining generational wealth demand financial education. To improve your personal finances, you have to develop financial literacy skills. You must learn and practice these variety of skills namely; investing, budgeting, managing and paying off debts, understanding credit and investment products. Also learning ways of generating passive income is important too. Below are several practical strategies for you to consider:
Pay Yourself First
To build wealth, this “reverse budgeting” strategy involves choosing a savings goal. For instance a down payment for an apartment, training or investment. Then decide how much you want to contribute toward it each month, and set that amount aside before you share the rest of your income.
Invest in Your Future
Consider investing in passive income programs. Create a diversified investment portfolio of stocks, commodities, CFDs, real estate and fixed income. If your employer offers a retirement savings account, sign up and contribute the requirement to receive the maximum payment. Also seek financial advice from professional CPA advisors to help you determine taxes and how much money you will need to retire comfortably. This advisor can equally help you to develop strategies to reach your wealth goal.
Manage Your Bill Paying
Take due diligence and stay on top of your monthly bills so that payments consistently arrive on time. You can take advantage of automatic debits from a bill-pay apps or a checking account. Also you may sign up for phone, email or mail payment reminders.
Create a Budget
keep record of how much money you receive each month against how much you spend in a budgeting app, an excel sheet or on paper. Your budget should include income, fixed expenses , discretionary spending, and savings. Example of income are paychecks, allowance, commission, dividend or investments. while examples of fixed expenses are utilities, loan payment, mortgage or rent payments. Discretionary spending are nonessentials such as shopping, vacation, travelling or eating out.
Manage Your Debt
Use your budget to stay free of debt by reducing spending while increasing repayment. Create a debt-reduction strategy, such as paying down the loan with highest interest rate first. If you have excessive debt, you may contact lenders to renegotiate repayment, consolidate loans, or find a debt counseling program.
Get Your Credit Report
You can request a free credit report from the three major credit bureaus—Experian, Equifax, and TransUnion. This is available once a year. Study it and report any errors or inaccuracies to the credit bureau.
Check Your Credit Score
Among many benefits, having a good credit score helps you obtain the best interest rates on credit cards and loans. Do well to monitor your score via a free credit monitoring service. Also you must be aware of the financial decisions that can raise or lower your score, such as utilization rates and credit inquiries.
Stay Out of Trouble
Building generational wealth demands saving and investment. To adequately save, you must cut off situations and behavior like crime, drug that substract rather than add to you. Consequently, it is important you avoid activities or behavior that is detrimental to your health, life and future at all cost.
Resources For Financial Literacy Renaissance
Savings Calculator
Savings calculator, otherwise called “savings account calculator” This calculator is a versatile financial tool by Black Wealth Renaissance. It can help you plan how to save up enough money to secure your dreams. It works to help you either find out how much you’ll save. And secondly, how much you need to deposit when you have a certain amount as your goal.
Mortgage Calculator
This mortgage calculate is an easy to use loan calculator. It is a tool that enables you estimate the cost of your mortgage. Also you can as well use it as your mortgage estimator. Consequently you will be able to easily calculate your monthly installments for different payback periods and mortgage rates (mortgage amortization). Burdened about buying your first property? Troubled whether you can afford it? Every big thing starts small. After you enter in just a few digits, the mortgage calculator will show you what your monthly payment and your total payments will be.
Dream Come True Calculator
This dream come true calculator is a tool that helps you estimate how long you have to save before you’re able to purchase a given item. Importantly, your realistic dreams require you saving a certain amount of money over a given period to achieve them.
Business Budget Calculator
This business budget calculator is a budget estimating tool for your company. As your business budget worksheet, you may use it to plan out the budget for upcoming months or to quickly reassess your priorities. In addition, this calculator is quite easy to operate. Enter all values into appropriate boxes to obtain statistics that will indicate how profitable your business is at moment.
Budget Calculator
This monthly budget calculator is a tool you can use to plan your savings and expenses efficiently. It can be use as expenses calculator, to assess the current state of your expenses. Also as a budget creator, to plan the ideal budget.
Debt To Equity Calculator
This debt to equity calculator enables you calculate the debt to equity (D/E) ratio. Debt to equity evaluates the overall debt against the stockholders’ equity and reveals the level of risk in financing your company.
Debt To Income Calculator
This debt to income ratio calculator is a useful tool for every individual who has taken mortgage or any other kind of loan. Because it shows you how deeply indebted you are and whether you can afford yet another loan without unfortunate consequences.
Retirement Calculator
This calculator helps you establish the amount of money you need to save each month to receive a decent retirement. Also it calculates what will be your monthly retirement income. This tool is important for individuals working monthly pay jobs with retirement accounts.
Credit Card Payoff
This credit card payoff calculator is an easy to use tool for managing credit card debt. With its help, you will be able to calculate the amount of time you need to be completely debt-free. Also you may use this calculator to determine the monthly credit card payments.
Bottom Line
Black Wealth Renaissance goes beyond its founders but extends to every black entrepreneur making wealth information accessible. They are not only the voice of hope but reference of change.
The fact is financial literacy is not specific to blacks. But a national problem affecting all racial groups whites, Asians or Latinos across United States. Financial literacy such as debt, saving and investment would be beneficial to all Americans. Blacks financial illiteracy may contribute but it is very far from been the cause of the racial wealth gap.
While financial literacy is important to maintain wealth in a capitalistic society, institutionalized racism remains a key factor in acquiring black wealth. In addition discrimination in mortgage lending and borrowing, current disparities in income among races and ongoing racism in employment and housing continue to foster the gap. To change this narrative, is the voice of hope and change of Black Wealth Renaissance and other emerging black entrepreneurs. You own yourself and generation the responsibility to be the change you want to see in America.