Photo credit: Pexels
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
_____
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
No comments:
Post a Comment