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As I navigated my financial journey from 2015 onwards, the stark reality of the racial wealth gap struck me, a black woman, emotionally. The disparity in wealth distribution, with white Americans holding 84% of US wealth despite comprising only 60% of the population, while Black Americans hold just 4%, hit home hard.
Research from the Federal Reserve reveals these stark contrasts. Furthermore, recent Federal Reserve Bank of St. Louis data for 2022 shows the considerable wealth gap faced by Black and Hispanic families compared to white families.
Despite these daunting disparities, I draw strength to pursue wealth-building opportunities as a black woman. In discussions with my siblings, we aspire to be the generation that amasses wealth and leaves a legacy for our offspring.
Here are three strategies I employed to turn this aspiration into reality.
1. Taking Control of my Earnings
Transitioning to self-employment in 2016 empowered me to set and negotiate my rates. While acknowledging this might not suit everyone, I value the autonomy to determine my worth, particularly in my freelance content creation and digital marketing services.
Engaging in thorough market research on the value of my services and networking with fellow freelancers bolstered my confidence in demanding fair compensation. Joining a self-employed group provided invaluable support, enabling me to surmount mental barriers hindering me from charging what I rightfully deserve.
Encouraging my W-2 employee husband to research compensation trends and potential employers who prioritize equitable pay practices is integral to combating the wage gap collectively.
2. Empowering myself with Homeownership
Recognizing homeownership’s role in wealth accumulation, my husband and I prepared meticulously before purchasing a home in 2018. Attending homeownership education sessions, enhancing our credit scores, and tapping into down payment assistance programs were vital steps in our journey.
The experience of homeownership not only taught us valuable lessons but also piqued my interest in real estate investment, linking property ownership to wealth creation.
3. Embracing Financial Learning as a Passion
Diving deep into personal finance resources, including blogs, videos, and finance literature, enriched my understanding of saving and investing. Starting small with fractional investments through platforms like Stash and Acorns laid the foundation for witnessing gradual financial growth.
Empower yourself with financial knowledge to pave the way for wealth accumulation and economic security.
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In 2017, I established an Individual Retirement Account (IRA) for the first time and started making contributions whenever possible. It wasn’t until 2020 that I was able to fully fund my IRA for the first time.
This journey has been enlightening, and I continue to learn more about financial planning. Investing time and money in improving my financial knowledge has enabled me to make informed decisions and enhance my chances of building wealth as a Black woman.
