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A study conducted in 2023 by Pew Research among African American individuals revealed that 68% of Black adults feel they lack sufficient income to support their desired lifestyle. On a more positive note, the study also showed that despite the current financial challenges, 58% of Black adults remain optimistic about their future financial situation.
There is a silver lining in the form of several African American financial influencers actively working to empower people to achieve their desired lifestyles. These influencers are making a difference by sharing their expertise in personal finance, facilitating critical conversations, and supporting individuals on their financial journeys.
We have reached out to influential figures who are making a significant impact and asked them about budgeting strategies, common money mistakes, financial education through social media, and supplementary income sources. Here’s what they shared with us.
The responses have been condensed for brevity and clarity. Explore more about each financial expert following the questionnaire.
Dealing with budget constraints can be challenging. What are your key tips for staying within your budget?
Trae Bodge. (Photo by Justin Hackworth)
Trae Bodge (expert in savvy spending and financial savings): Similar to commitments like diet and exercise, it’s crucial to set realistic goals that are sustainable rather than aiming for something unattainable. Distinguishing between needs and wants, identifying spending pitfalls, setting goals, and understanding personal values are essential steps, especially if managing finances as a couple.
It’s beneficial to incorporate periods of enjoyment and milestone rewards in your budget aligned with your values. This provides motivation to adhere to your budget without sacrificing everyday pleasures.
Rahkim Sabree.
Rahkim Sabree (financial therapist and author): Ensure that your financial objectives align with your core values. Many individuals approach budgeting like a temporary trend. If your financial goals do not resonate with your values, sustaining them becomes challenging. It’s important to include moments of pleasure and special rewards in your budget to provide the incentive to continue, allowing room for indulgences without guilt.
Ericka and Chris Young.
Ericka Young (co-host of the “For Better & Worth” podcast alongside her husband Chris): Disassociate your credit and debit cards from shopping apps to reduce impulsive purchases. Opting out of mailing lists can also help curb unnecessary spending.
Allow yourself time to enhance your budgeting skills. Budgeting is a learning curve that may take months to grasp and implement effectively.
Yemi Rose.
Yemi Rose (founder and CEO of OfColor, a platform promoting financial wellness among colored employees): Acknowledge that a setback… doesn’t equate to a complete failure or termination of your effort. The disappointment from slightly exceeding your budget should not lead you to abandon it entirely. Be kind to yourself and realize that adhering to a budget is a series of daily decisions, and occasional lapses are natural.
Can you share a recent financial mistake you made? What lesson did you learn from it?
Yemi Rose: I’ve found apps like Cash App and Venmo quite convenient… but recently, I neglected to monitor my account balances.**Maximizing Financial Opportunities: A Deep Dive**
Over time, I noticed that I was keeping a significant amount of cash on hand without managing it effectively, missing out on potential interest earnings. Instead of letting the money sit idle, I realized that there are lucrative interest rates available that could help grow my funds.
When moving into a new house, my friends and I opted to rent a soft water system instead of purchasing one outright. Looking back, we realized that buying the system initially would have been a more cost-effective decision compared to the accumulated rental payments over time.
**The Impact of Social Media on Financial Literacy**
Social media has revolutionized the way people access financial information, offering a vast array of concepts, tools, and terminology. However, it comes with a caveat – regulatory constraints often limit licensed professionals from sharing financial insights, creating an avenue for misinformation by unqualified individuals. Hence, it’s crucial to discern credible advice by verifying the source’s credentials and reviews.
**Insights on Side Gigs and Financial Independence**
Taking on a side gig has become a popular trend, particularly among marginalized communities. It’s essential to assess the benefits and sacrifices involved. Understanding the potential long-term goals, such as transitioning to a full-time position or starting a business, is key. Additionally, conducting thorough research on various gig opportunities can help set realistic expectations and minimize risks.
For those fortunate enough to not rely on additional income to cover expenses, engaging in a side gig presents an opportunity to boost savings and potentially achieve financial independence earlier. Moreover, leveraging tax benefits like deductions and specialized retirement plans can further enhance financial stability.
**Meet the Influencers**
– **Trae Bodge**: A seasoned lifestyle journalist known for her expertise in money-saving strategies and smart shopping. With over 1,000 media appearances, including on top shows like “Good Morning America,” she’s a go-to expert in the field.
– **Malcolm Ethridge**: An accomplished writer, speaker, and executive vice president at CIC Wealth, overseeing the development of tailored financial plans for professionals facing intricate financial challenges.
– **Yemi Rose**: The visionary behind OfColor, a platform dedicated to empowering employees of color through financial wellness. Integrating fintech with culturally relevant content, Yemi’s work focuses on financial coaching and therapy.
– **Rahkim Sabree**: A prominent financial therapist, accredited counselor, and recognized authority on financial trauma. His works, including books and columns for Forbes, shed light on overcoming financial hardships and promote financial well-being.
– **Ericka Young and Chris**: Co-hosts of the acclaimed podcast “For Better & Worth,” the dynamic duo emphasizes fostering healthy financial discussions within relationships without compromising financial goals.
