Thursday, November 30, 2017

The Gift that Keeps on Giving

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The Gift that Keeps on Giving


The holidays are right around the corner. It’s a time filled with happiness and cheer. People are especially kind to each other.  There’s good food, great company, parties and festivities. Hearts are especially open…and so are checkbooks! Don’t think that retailers don’t know this. Not only do they know this, they count on it. Research shows that much of our spending is tied to emotions. Commercials are geared towards tapping into our happy feelings, eliciting a response that makes us want to spend money, purchasing the advertised items. Of course, once we’re in the stores, colorful displays, cleverly placed lights, pleasant scents and friendly sales people trigger us to purchase items on impulse. It’s all a very well planned design to get the public to part with their hard earned money. It works too. I am just as guilty as the next person of coming home loaded down with bags of unplanned purchases that I just “couldn’t resist.”

This takes me right to my next point. As African Americans, we spend a disproportionate amount of money on disposable goods than other nationalities of people in the nation. According to African-Americans: Demographic and Consumer Spending Trends, 10th Edition, Blacks spent $1.3 Trillion in 2016. This is absolutely astonishing, especially considering we are only 14.5% of the United States population, per the 2016 U.S. Census Bureau and that nearly 30% of our population lives in poverty. An even more disturbing number is that 55% of our households are headed by single women, and of those households 46% are living in poverty (www.BlackDemographics.com). Major corporations use the findings from Target Market News, a company that studies the buying trends of Black people each year, to target their marketing and advertising towards us specifically.

Alas all is not lost. I don’t bring these statistics up to discourage you. There is such power in those numbers, just as there is great power in knowing our own buying power.

It is no secret that the disparity between black and white wealth in this nation is significant. Yet, we see by the numbers above that we do have resources to spend. One of the major differences between black and white wealth is what we do with the resources we have coming in. Lots of research has been spent on the buying trends of Black Americans. While we are very likely to spend our hard-earned dollars on expensive items of no real value, i.e. expensive gym shoes, designer clothes and purses, pricey cosmetics and salon services, etc., we don’t own many of the companies we spend our money with. I am not encouraging that we don’t shop. No, to the contrary, I am merely suggesting that we become more mindful and strategic about where we allow our dollars to go. Consider the following:

For every brand that you enjoy using, purchase some shares of stock in the company. This way, not only are you adding to their bottom line, but you are adding to your own future wealth as well. Even small investments over time grow to become significant to the overall quality of your life.

It is often perceived that it takes a substantial amount of money to invest in stocks and mutual funds. What would you say if I told you that it was possible to begin investing with as little as $5? Hard to believe, isn’t it? Just think that forgoing one fast food value meal each week could potentially set you up for greater wealth in some years to come. If you were to take a look at where your money goes, I’d be pretty certain that you could find other areas where the money is going to nothing significant and could be better served being invested.

There are a number of app-based programs that you can add to your smart phone and begin investing in your future, and that of your children and grandchildren, today. I don’t know about you, but that thought is so exciting to me. Here are a few companies to look into that may prove helpful on your quest to financial greatness. Stash allows you to buy into mutual funds and ETFs with as little as $5. Robinhood sells stocks that are posted on the New York Stock Exchange with minimal fees per transaction. For stocks that are listed on other stock exchanges, there are companies like Ameritrade, eTrade, and Scottrade that lets you purchase stocks for a mere $7 per transaction. What’s nice about these companies is that you can set up investment accounts for your children and grandchildren and get them started, even while you are building your own nest egg. Other companies to look at are Betterment and Wealthfront.

While you are beginning (or adding to) your investment portfolio, why not include your family in the process. It’s never too early to teach financial literacy to your children. When they come to you asking that you purchase the newest ‘hot’ item that all their friends have, make this a teachable moment. Research the company and put a plan in place to start owning pieces of stock in that company. Even if all you can purchase is one share, that’s still one share more than you had before. Plan to make consistent investments and to build up your stock portfolio. Setting up your accounts to invest automatically puts you way ahead of the game, because it’s money that you won’t have on hand to spend. You’ll be amazed at how quickly you begin to amass wealth. Compound interest earned over time is an investor’s best friend.

This year while you are making your holiday shopping lists, include the gifts that keep on giving in the form of stocks, bonds, and mutual funds.

To learn more about investing and money matters as a whole, try The Black Business School. This school is internet based and offers a wide range of classes for people of all ages. Including a special program in place just for children.  What could be more exciting…and beneficial…than to make financial planning a family affair! http://bit.ly/2hxhruQ

Changing lives one word at a time…Tumika Patrice Cain

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Tumika Patrice Cain is an award-winning author, media personality, and motivational speaker. Through her imprint, Inkscriptions Publishing & Media Group, she provides high quality, affordable, mentor-based publishing services to indie authors, as well as inspired, empowering messages of hope and abundance through her media outlets. Her works can be found in many publications, including Fresh Lifestyle Magazine. To learn more about Tumika, her books, and her services visit the following websites. http://www.TumikaPatrice.com and http://www.InkscriptionsPMG.com


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