# Four Steps to Achieve Financial Wellness for Black Americans
## 4. How to Grow Your Savings and Investments
Saving money and investing are just as important as maintaining good credit. If it seems challenging to find the funds to save or invest, consider implementing the 50-30-20 rule to manage your budget: allocate approximately 50% of your income towards necessities like food and housing, 30% towards your wants, and reserve the remaining 20% for investing and saving.
Make building an emergency savings fund a top priority if you don’t already have one. Start small if necessary, even saving just $5 at a time until you reach $1,000. Afterwards, aim to have enough set aside to cover three to six months’ worth of living expenses.
Equally important is to invest for your retirement. If your job offers a 401(k), take full advantage of it. If not, consider opening an IRA. From there, explore other investment opportunities to grow your money for the future. Find what works best for your lifestyle, and most importantly, allow your money the chance to grow.
## Creating a Brighter Future
Some Black Americans may need to put in extra effort to generate and protect personal wealth. Understand that regardless of the broader economic landscape, you have the power to make a positive impact on your own financial life.
Moreover, increasing your personal net worth as a person of color can initiate a ripple effect that positively influences others. Remember to show yourself empathy and recognize that the small steps you take today can accumulate into a better financial future for tomorrow.
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CRC 5421154 1/2023
