It would take the average black family 228 years to catch up with white family wealth

We’ve all read that it would take 228 years for the average black family to match the wealth of the average white family. This statement is true under specific conditions.

The truth is that we will NEVER pass them if we keep the same habits. But let’s not forget that many black people have more wealth than the average white family. This comes from basic things that many of us can train our kids to do, like:

1) Owning a home as soon as you can (not paying rent for your entire life)

2) Investing the same amount of money in the stock market as we spend on clothes, shoes and fast food (we call this the Matching Principle)

3) Learn to start businesses early rather than working for someone our entire lives (even white people who are perpetual employees don’t build much wealth). A person should never commit to just one stream of income, this is very, very risky.

Also, avoiding too much student loan debt is another critical trap we should avoid.

A black person who does these things is probably going to have more wealth than the average white person. I knew a black woman who started off dirt poor (her mother couldn’t even afford a refrigerator), never studied finance, never started a business, but is now close to being a millionaire by basically doing these things:

1) Maxing out her 401k when she got her first job (many of our people don’t want to do that due to instant gratification culture)

2) Saving 10% of her income (saving should be the first thing you do in your budget, not the last)

3) Buying a home as soon as she could (people don’t realize that when you rent for life, you’re actually making your landlord a millionaire)

4) Avoiding too much student loan and credit card debt (These are consumer traps that cripple millions of Americans).

It’s doable, but the problem is that many of us have been trained to believe that it’s not. However, if all of us did exactly what she did, we would have very similar results.

We cover this kind of thing regularly in our core principles in TheBlackBusinessSchool.com. Our methods are better than most universities, and you can actually get started for free.

The Black Financial Channel is a news and business channel designed specifically for the African American community. We give daily financial updates on stock markets, investing and other related topics that appear in financial news.

The Black Financial Channel is sponsored by The Black Business School. To join The Black Business School and get started for free, please visit TheBlackBusinessSchool.com. You can also get free financial tips, advice and information from Dr Boyce Watkins by visiting DrBoyceWatkins.net

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