Wealth Building Strategies
Stock Investing 101
Only 54% of American adults invest in the stock market-that includes employer 401(k), 403(b), etc plans. The picture is even grimmer for African Americans in that only 36% have investments in stocks. Throughout history, stocks have proven to be one of the best vehicles for building and creating wealth. So, anyone who is serious about improving their financial situation should definitely include investments in the stock market as part of their overall plan.
Real Estate
Purchasing real estate is a popular way to invest and you may be able to make money doing it but it has its pros and cons. If you’re wondering if real estate has a place in your wealth-building plans, sit down and have a conversation with your investment professional. Another avenue you can take to relieve you from all of the logistics of buying/selling real estate is to instead purchase REITs (real estate investment trusts).
Entrepreneurialship
African Americans have a long history of entrepreneurship including several thousand successful businesses that thrived in the city of Tulsa, Oklahoma nick-named Black Wall Street. Many experts believes that Black business ownership, more so than even education, is a tangible pathway for African Americans to achieve economic parity and close the racial wealth gap.
F.A.Q.
Investing in stocks can be an efficient way to build wealth over time. The first thing you’ll need to do is to open a brokerage account. You can buy directly using one of the investment apps-such as TD Ameritrade or Robinhood.
Many people believe they need to have a lot of money to start investing. That is totally false. The key is to start right where you are today. You can begin investing for as little as $25. It is even better if you can invest that consistently on a monthly basis.
I always suggest that people start by investing in what they know. Take a look at your recent bank statements and take note of the places where you spent money. I bet some of them would be: Apple, Verizon, McDonalds, Netflix, Walmart, etc. You get it!
Yes, you really can invest in real estate with no money. But if you don’t have any money, you will have to find some other way to contribute resources-time, skills, relationships, or sweat equity. Many experienced investors say that the easiest way to purchase a property with no money down is by borrowing the down payment. Either find a lender (hard-money) or use home equity or other lines of credit loan.
The hardest thing about being an entrepreneur initially is having the ability to fairly judge and assess your self-awareness in whether entrepreneurialship is your true calling. It is a massive undertaking and often taken lightly by soon-to-be entrepreneurs.
We teach a basic 6-week “investing 101” wealth building class offered on Tuesday evenings and Saturday mornings to help people learn how to buy stocks and invest in the stock markets. The charge is $35.