Day 3 of The HBCU Wealth Journey

Today was a turning point—a day full of movement, motivation, and momentum.

The support that came in today lifted my spirit. We went from 6 donors to 9, and our total raised jumped from $550 to $1,050. That means we can now donate 35 Generational Wealth Kits—up from 18 yesterday.

That progress? It gave me energy. It reminded me why I launched this campaign in the first place.

With that encouragement, I:

• Sent out personalized thank-you emails to each donor

• Created and shared social media images for donors to use and spread the word

• Emailed and texted new potential supporters

• Posted on LinkedIn and Facebook to keep the mission alive in people’s minds and hearts

It was my most productive day so far, and for that—I am deeply thankful.

As we move forward, I remain hopeful. I know that with each “yes,” we get closer to the goal of donating 50,000 kits and transforming the financial future of HBCU students and alumni.

God, thank you.
For the strength, the progress, and the purpose.

Let’s keep this movement moving. One day, one donor, one kit at a time.

With gratitude,
Ruby SunShine Taylor
Founder & CEO, Financial Joy School

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Inflation Reduction Act

The Inflation Reduction Act signed into law by President Joe Biden in August of 2022 has brought with it a myriad of tax law changes, for individuals and families, as well as for businesses, both small and large. Let’s take a look at what has changed and how you might be able to take advantage of these credits and deductions on your taxes this year.

Individuals and Families

Since the Inflation Reduction Act is centered around clean energy and ushering our country’s infrastructure into the future, it comes as no surprise to learn that the tax law changes this act brings are with regards to clean energy. Individuals and families who are paving the way for clean energy to take a foothold within our culture are given incentives to that end through various benefits such as tax refunds and credits from the US government.

If you have purchased an electric vehicle, either in 2022 or prior to 2022, you might be eligible for the clean vehicle tax credit, up to the maximum credit of $7500. For more information about this tax credit, you can visit the dedicated page for this credit on the IRS website to learn more.

If the home you’ve purchased is energy efficient, or if you’ve upgraded your home with energy efficient appliances, you might qualify for a tax credit as well.

Businesses

Businesses also get tax incentives to improve not only how they manufacture their goods, but to give specific focus to creating products that use clean energy. The list for business tax incentives is long, including such tax credits as the clean electricity production credit, the clean fuel production credit, the energy efficient commercial building deduction, the sustainable aviation fuel credit, and the zero-emission nuclear power production credit, just to name a few. To read the laundry list of various business deductions, visit the dedicated page on the IRS website.

What it All Means

By giving individuals, families, and businesses tax incentives to get on board with clean energy, the US government is paving the way for the energy of the future. There can be no argument that our country needs to wean itself from fossil fuels that pollute our air, land, and water. The only way to bring this new way of living about is to make it attractive to everyone in every facet of life, from the single individual all the way up the corporate ladder. With every level of our society being offered tax credits, deductions, and incentives, there is more likely to be a societal shift in this direction—which is the end goal of the Inflation Reduction Act—to harness electric, wind, and solar power within the next ten years.

This is exactly what the Biden Administration is banking on—a win/win scenario for America’s economy and also for the average American’s pocketbook.

To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.

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Paves the Way For Clean Energy

According to President Biden, the Inflation Reduction Act is “not just about today, it’s about tomorrow. It’s about delivering progress and prosperity to American families.” This act, signed into law in August of 2022, is a roadmap for our country to focus more on clean energy by empowering Americans to innovate new jobs and products that will not only mean more money in American pockets, but also cut back the pollution and policies that have been driving climate change to a crisis point. Over the course of the next ten years, we should be able to see a dramatic shift toward clean energy in the American economy.

Tax Cuts and Relief

Not only does the Inflation Reduction Act set its sights on the future, it also aims to help Americans today. By implementing certain tax cuts and relief programs, this act will end up saving families a great deal of money with regards to their energy bills, if they drive clean vehicles, and have homes that utilize clean energy. Even big businesses that make an effort to invest in clean manufacturing will benefit greatly from these tax cuts. The idea is to make clean living attractive with monetary compensation so that these new habits will become a new way of life. 

These tax cuts and provisions also benefit low-income communities by offering bonus credits to any projects within these areas. These projects will also aim to pay workers higher wages—ones they can live on—as they build our new clean energy infrastructure from the ground up. The goal is that not only will the nation benefit from clean energy, but that those who put it into practice and work to make clean energy mainstream will be compensated accordingly. 

President Biden’s aim is to make higher paying jobs while also shifting our nation more toward clean energy, which will last long after his Administration.

Grants and Loans

The Inflation Reduction Act also offers grants and loans—billions of dollars worth—for any programs that invest and/or implement clean energy. These grants and loans are also designed to help relieve working families in rural areas or other parts of the country that are sometimes overlooked or underprivileged. The Justice40 Initiative, advanced by this new law, is President Biden’s plan to provide forty percent of the clean energy benefits, as well as those of climate, infrastructure, and others, to communities that have been disadvantaged in the past, including rural communities, energy communities, and Tribes.

The Big Picture

Over all, the Inflation Reduction Act is President Biden’s vision of providing well-paying jobs for union workers, lowering costs overall for every American, while addressing the pressing issue of climate change through investing in clean energy. These programs will reward those making an effort in this direction while also further offering grants and loans to programs committed to the same. If we work together and commit to making the world not only a better place, but a cleaner place, our economy, our wallets, and most importantly, our planet, will thrive.

To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.

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On August 16th, 2022, President Joe Biden signed what’s known as the Inflation Reduction Act of 2022. What is it and how will it impact you and your family? In short, this bill aims to make prescription drugs and health care more affordable while also heavily taxing large (and wealthy) corporations in order to fight climate change. Let’s take a look at how this bill might affect you in the years to come.

What’s In the Bill?

The Inflation Reduction Act hits a lot of this country’s pain points and is the culmination of several plans and promises President Biden has given and envisioned over the years. This act has a few large provisions listed below:

Corporate Minimum Tax Rate of 15%

If a corporation brings in an income of at least $1 billion, it will be given the new tax rate of 15%. While this increase is doled out upon wealthy corporations, individuals and households will not be impacted. If corporations participate in stock buybacks, they will also be given an excise tax of 1%.

Reform of Prescription Drug Prices

Beginning in 2025, everyone on Medicare will have a cap placed upon their out-of-pocket prescription drug costs of $2000 annually. Medicare itself will be allowed to negotiate certain prescription drug prices which will result in a lower medication price over all for their beneficiaries. This is likely one of the most significant changes of this bill.

Tax Enforcement of the IRS

For several years, the IRS has complained of being severely underfunded which results in difficulties, and sometimes impossibilities, to perform all of its duties. Over the next decade, the Inflation Reduction Act aims to invest a much-needed $80 billion into the Internal Revenue Service.

A Subsidy Extension for the Affordable Care Act (ACA)

Through the Inflation Reduction Act, the Affordable Care Act subsidies will not expire, but be extended through 2025 until President Biden’s new bill takes effect. If the subsidies hadn’t been extended, upwards of 3 million Americans would likely lose their health insurance.

Climate Change and Energy Security Investments

While this bill focuses on the healthcare industry, it also focuses on reducing climate change. The bill includes several investments regarding the protection of our climate, such as tax credits that help with rising energy costs, tax credits that reward carbon emissions reduction, and pouring investments into producing clean energy.  

Unlikely to Affect Inflation Rates

Despite the name of this bill, it seems the Inflation Reduction Act will not necessarily impact the rising costs of inflation. However, the bill is absolutely vital with regards to climate change and the soaring price of healthcare and prescription drugs. Over the next ten years, we should be able to see a marked change in these two arenas, and that change for the better. The Inflation Reduction Act will likely go down in history as the legacy of President Biden.

To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.

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During a Recession

When the economy is in a downturn and headed toward a recession, what can you do to keep your investment dreams alive? Our advice? Don’t stop investing. There are several viable stocks that don’t wildly fluctuate with the economy and are sure to continue to grow even when a recession is on the horizon. Let’s take a look at some of the stocks you can purchase that will continue to grow your wealth even through a recession.

Health 

Even though the economy seems to be losing ground, one industry that continues to thrive is the healthcare industry. No matter the state of affairs, people still get sick and need medication. Investing in healthcare companies and medicine manufacturers is one of the strongest decisions you can make for solid stocks. Some of your options include:

• UnitedHealth Group (NYSE: UNH)
• Pfizer (NYSE: PFE)
• Johnson & Johnson (NYSE: JNJ)
• CVS Health (NYSE: CVS) 
• Walgreens Boots Alliance (NASDAQ: WBA)

Retail

Believe it or not, retail companies are also a smart buy, considering people in a recession still shop, however, they shop smart. They shop at cheaper stores as well as stores that offer items in bulk. If you purchase your stocks with this in mind, you’ll tap into the vast potential of stable retail companies. These retail stocks include:

• Dollar General (NYSE: DG)
• Dollar Tree (NASDAQ: DLTR)
• Costco (NASDAQ: COST)
• Walmart (NYSE: WMT)
• Home Depot (NYSE: HD)

Utilities

Utility companies are also a good bet, as there is always a demand for utilities such as water, sewer, electricity, gas, waste management, and so on. Families might cut corners as far as spending goes, but they still want their lights on at night and a hot shower in the morning. Companies that you might consider investing in would include:

• Waste Management (NYSE: WM)
• American Water Works (NYSE:AWK)
• Brookfield Infrastructure (NYSE:BIPC)(NYSE:BIP)
• NextEra Energy (NYSE:NEE) 
• Williams Company (NYSE:WMB)

Goods

Companies that deal with goods include goods people cannot live without. These staples consist of household products, personal products, and food people prepare at home. Eating out at restaurants is one of the first expenses to be scratched off the budget, so investing in the food industry is a smart move. These stocks include:

• General Mills (NYSE:GIS)
• Kroger (NYSE:KR)
• Tyson Foods (NYSE: TSN)
• Procter & Gamble (NYSE:PG)
• PepsiCo (NASDAQ:PEP)

Diversify

When it comes to investing, holding a diversified portfolio is key. Having a diversified portfolio doesn’t mean you hold a lot of stocks, but that the stocks you do hold represent a cross-section of several different industries, including those that can withstand a recession. In fact, it is highly recommended by investment firms to hold stocks such as these, as they are financially strong. You might look into holding a few blue-chip stocks as well, which are stocks from high-quality companies that continue to do well and hold strong in the stock market year after year.

The threat of a recession doesn’t mean you have to pump the brakes on your investment plans, rather it means you’ll need to change tactics. Take a look at investing in industries people absolutely cannot live without, and you’ll continue to build wealth even in an economic downturn.

To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.

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Can Build Economically

As inflation rages out of control and a recession is fast becoming a possibility, Black families must learn how to adapt and come together to build their wealth in a declining economy. It takes more than one person to tow the line; every member of the household will need to do their part to find financial stability in the coming months. Let’s take a look at some practical ways the whole family can get involved.

Education

It’s not rocket science that Black families don’t get the education they need to make sound financial decisions. That is why Financial Joy School exists. We firmly believe that every Black and brown family deserves to know how to stretch their finances, invest wisely, and build generational wealth. This is not the job of dad or grandpa to play the stock market, but now is the time for the younger generation to invest, to save, to be smart about their money. The only way this fantastic future of generational wealth can be realized is to start now by educating our parents, our children, and even ourselves.

Tax Credits 

Doing your homework and educating yourself includes knowing what you may and may not be eligible for when it comes to tax credits. See what credits are available and what you could qualify for before tax season. You might be surprised you qualify for credits such as the Earned Income Tax Credit, which helps moderate or low income families get a break on their taxes, or the Child and Dependent Care Credit, which helps offset the cost of childcare if you need it in order to work. There are many more credits. Be sure to check them out and see if any are right for you.

Invest Early

Don’t wait until you’re almost of retirement age before you decide to invest. In order to build generational wealth, investing must start early and be done often. Don’t be afraid to open retirement accounts for your teenagers or even yourself if you have never done so before. There is no time like the present to get started. The earlier you begin, the better off you will be. Decisions you make today vastly affect your life tomorrow. Even if you are only able to invest a few dollars at a time, anything is better than nothing. And nothing is more exciting than to see your investment account grow. Investing along with your children is an excellent opportunity to teach them about saving money and wealth in general. By making investing a family affair, you’re giving your kids an excellent head start in their own lives.

Pay With Cash 

During hard times, it is so tempting to buy things on credit. Don’t. As much as you can, try to buy things with your own cash. While owning a credit card is not a bad thing in and of itself, getting in over your head with debt can vastly hinder your wealth journey. By denying yourself now, you are allowing yourself to build something much bigger and much better for your future. Use your credit card just enough to build your credit, but be frugal and keep your eye on the end goal of surviving hard times by building familial wealth. 

To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.

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