How to Build Wealth in The Black Community

Building Generational Wealth in The Black Community has been a great & touchy topic to be around and discuss the last few years. We’ve been in a entrepreneurial renaissance in a sense from 2018 until now people are sprouting up new businesses and going the independent route as well as becoming influencers. It’s all over the culture even the already 1% are starting to bet on themselves & branch out from Master P, Kevin Hart, Lebron James, Dwayne Johnson, Brandon Marshall, Wallo 267, Gillie Da Kid, Chico Bean, DC Young Fly, Karlous Miller & the 85 south team, Ryan Clark, Channing Crowder, and Fred Taylor. We’re starting to see people take their own financial education and freedom into their own hands, being fearless and betting on themselves and in some cases it’s paying off. Not everyone can be an entertainer or athlete like these guys who establish capital and then pivot to become great business men like they are.

Here are some other steps we can use and take to narrow this 400 year financial gap of our community. We have to first correct our mindset & thinking by establishing a belief in yourself, family, and close circle/network. Beyond the mindset switch we also need to stop feeling like we can’t educate one another on some simple information we’ve learned/gained through someone else, as well as letting people use our networks to grow in their respected field or get an opportunity we don’t want to or just can’t make personally at the time. A great tool we have to utilize more is family & group economics. We as individuals may not be able to make a play or start a business but as a collective of trusted, patient, and well informed people we can pull our resources to make something happen. For example if I have 35,000 dollars of free capital to invest but a great opportunity that costs 150,000 I can go to 4 friends & give them the pitch/information hoping for 30,000 dollars from each or go to 9 friends asking for 15,000 with the same pitch/information to start generating us all income. Another way to establish generational wealth is to get a life insurance on yourself and put it in your children’s name so they can receive the payout after you pass on or you can borrow against the policy in which you have to pay it back only at an 1% interest rate which is way better than the average bank loan 10-15.5% depending on our credit scores.

Establishing generational wealth for the youth is a bit more simpler than for an adult. There's a quote from Frederick Douglass that says “it’s easier to build strong children than to repair broken men.” You can create a good foundation for the children by opening them a bank account at birth & making monthly deposits, you can also add your children to your credit line at 13 as an authorized user to establish a line of credit for them when it becomes time to receive their own credit line. Also as a business owner you can have your children listed as employees so you can pay your children, give them a legitimate title/role to bolster their resume, and a solid long work history will help with credit line as well.

All in all, generational wealth is not something we can just establish overnight; it’s going to take patients, education, trust, and discipline. Some things we must do are to commit to teaching our youth about saving money, establishing good credit, and starting businesses. We have to reprogram our adults into establishing credit, not keeping up with the Joneses, and believing in unity and community. Also we as entrepreneurs have to take pride in our businesses, products, and services by providing good customer service, communication is key and professionalism. Just because we’re black businesses doesn’t mean we have to support you or continue to spend our hard earned money with you for poor service, products, or constant miscommunication, and overcharging. We as the people of this community have to plan for the future the long term not just rite now we have to stop cutting our nose off to spite our face in sense of doing shotty business just to get a few dollars to buy what we ant or take these trips and lose what really matters the people the true commodity.

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