In order for black people to survive financially we need to raise strong financial individuals. Wealth makes the individual stronger, thus empowering the community. We should have a plan for our money. Our money should have specific jobs.
Jobs for Our Money
Money is a tool. It's a tool that should be used to provide us with things that we need. Its job should be to protect us, entertain us, and recruit for us.
This money job is for the everyday things that we need. Our food, clothing, shelter, transportation, health care, savings for a rainy day, etc. This is an important job for our money and should comprise about 50% of our income.
This money job is for our personal and/or family entertainment. Movies, going out to eat, Netflix, splurges, etc. This is where we as black people fall a little short. This should comprise of about 10% of our income. We probably spend more than we should in this area.
Recruit for Us
This is yet another place where we fall short, yet this is the key to wealth building. This money job, is for our money to go and make more money. This is what we use for investments - like stocks. bonds, mutual funds, etc. This should comprise of about 40% of our income.
Take inventory of what your spending your money on. Get a copy of your last months bank statement and expenditures. Compare how much money you are spending as opposed to how much you are investing. If you aren't investing at least 30-40% of your income - start. Investing is how wealth and passive income is built. We will never get wealth if we are using our money on security and entertainment while ignoring recruitment. Start putting your money to work. Most of us probably use Netflix, Facebook, Google Amazon or Nike. But how many of us own stock in any of these companies? As of 2013, if you would have invested $1,000 in Amazon when the stock came out, it would now be worth almost $250,000. Money is a tool, put it to work.