**Disclaimer: This is not financial advice; it is financial education. Please do your own research and consult a financial professional before making any investment decisions.

Many people believe building generational wealth requires large sums of money, but the truth is, it all starts with small, consistent actions. The power of long-term investing and compound interest means that even the smallest amounts can grow into something significant over time. In this blog post, I’ll show you how you can start your wealth-building journey with just **$1**, commit to investing **$25 a month**, and create a legacy for your family worth over $50,000 in 30 years. Let’s break it down.

The Power of Compound Interest

Compound interest is often called the eighth wonder of the world. It allows your money to grow exponentially over time by earning interest not just on your initial investment, but also on the accumulated interest. When you invest consistently and allow time to do its work, even modest contributions can snowball into a significant sum.

Here’s an example:
– Start with an initial investment of $1.
– Add $25 every month to an investment in the S&P 500.
– With an average historical return of about 10% annually, your investment could grow to $51,588.53 in 30 years.

This might not seem like much compared to millions, but it’s a powerful starting point—especially when you consider the generational impact.

The Importance of Starting Small

You don’t need thousands of dollars to start building wealth. What you need is consistency, patience, and the willingness to start where you are. Starting small with $1 and investing $25 monthly might feel insignificant, but the habit of investing regularly creates a ripple effect. It’s a financial discipline that can be passed down through generations.

Teaching your children or family members the importance of investing early can multiply your efforts. Imagine if your children, inspired by your example, begin their own investing journey. Generational wealth isn’t just about money—it’s about mindset and habits.

Why the S&P 500?

The S&P 500 is a collection of 500 of the largest publicly traded companies in the U.S. It’s often considered one of the best benchmarks for the U.S. stock market and is an excellent choice for beginner investors due to its diversified exposure and consistent historical performance.

Investing in the S&P 500 is also accessible, with various funds and ETFs designed to make participation easy and affordable.

Here are 5 S&P 500 investments to consider for your wealth-building journey:
1. VOO (Vanguard S&P 500 ETF) – Known for its low expense ratio and strong performance, VOO is a favorite among investors.
2. SPY (SPDR S&P 500 ETF Trust) – One of the most widely traded ETFs, offering liquidity and reliability.
3. IVV (iShares Core S&P 500 ETF) – Perfect for long-term investors with competitive fees.
4. FXAIX (Fidelity 500 Index Fund) – A cost-effective mutual fund with a proven track record.
5. SWPPX (Schwab S&P 500 Index Fund) – Offers excellent value with no minimum investment requirements.

The Generational Impact

By starting small and staying consistent, you can leave a financial legacy that extends far beyond the numbers. Here’s how:
1. Break the cycle of financial instability: Even a modest sum can provide your family with a foundation to build upon.
2. Create a culture of wealth-building: When your family witnesses the results of your investing journey, they’re more likely to adopt the same habits.
3. Leverage compounding across generations: The earlier your family members start investing, the more exponential their wealth can grow.

The $51,588.53 you leave after 30 years isn’t just a dollar amount; it’s a stepping stone for the next generation. If they continue building on your foundation, the possibilities are limitless.

How to Get Started Today

1. Open a Brokerage Account: Choose a platform that allows for low or no minimum investments. Many options, like Fidelity or Schwab, are beginner-friendly.
2. Choose an S&P 500 Fund or ETF: Select from the list above or consult a financial advisor for advice tailored to your situation.
3. Automate Your Contributions: Set up an automatic transfer of $25 (or more, if possible) each month.
4. Be Patient: Investing is a long game. Stay consistent, ignore market fluctuations, and let time do its work.

Your Wealth-Building Journey Starts Now

Building generational wealth is more accessible than most people think. It’s not about how much you start with—it’s about starting. That $1 investment can become a legacy of financial stability and opportunity for your family.

The journey to generational wealth isn’t just about money—it’s about creating a mindset, fostering discipline, and passing down financial wisdom to the next generation. So, what are you waiting for? Start with $1 today, and let’s build a brighter future together.

Join the Movement:
What’s stopping you from starting your wealth-building journey? Share your thoughts in the comments, tag someone who needs to see this, and let’s spread the message: **Small steps lead to big legacies.**

#GenerationalWealth #FinancialEducation #Investing #FinancialFreedom #Legacy

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There has been talk recently about the United States economy staring down a recession. Recessions happen when there is a general downturn of the economy as a whole with regards to job loss, falling stock prices, and declining investments. But have you heard of a global recession? What is it and how might you continue to invest during one? Let’s take a look.

What is It?

When there is a marked and steady decline of economic growth worldwide, it is referred to as a global recession. This usually occurs when several economies slow down at the same time in varying countries. When this happens, international trade is affected which sends economic shockwaves around the world. When both trade and stocks are affected, the entire world feels the pinch and recession can spread from one national economy to another. 

When the gross domestic product (GDP) decreases across the board, it must also include weakening trade as well as employment, among other factors. These criteria must be met before the International Monetary Fund (IMF) declares a “global recession.”

Impact of a Global Recession

A global recession has a different impact from country to country. The relationship between one country and another with regards to trade will be the determining factor of how the global recession will affect a nation’s economy, specifically the sector of its manufacturing. However, should the country have efficiency with its investments along with sophisticated markets, it might not be as deeply impacted through the financial industry.

The Great Recession

Between the years of 2007 and 2009, the world’s economy declined into what’s known as the Great Recession. When Lehman Brothers filed for bankruptcy in 2008, the stock market reeled from a major correction when the housing bubble burst. The world economy had already taken a nosedive in 2007, and the bankruptcy of 2008 only served to make an enormous worldwide financial crisis, and both inflation and unemployment went critical. 

This led to the stock market finally bottoming out in 2009. Ensuing years, however, saw a much-needed uptick in the market, but smaller countries with more fragile economies took longer to recover. Even now, well over a decade later, the effects of the Great Recession can be seen (and felt) in certain countries and their lagging markets. 

The United States suffered so badly during these years due to the fact that the downturn of 2008 happened right here within our own economy. If it had happened elsewhere, the US wouldn’t have been hit so hard due to our limited relationships in trade with other countries when compared to the size of our economy. 

How You Can Invest

If the world once again plunges into global recession, there are still ways you can (and should) invest. Check out our list of stocks that are more secure than others during an economic downturn. These stocks include goods and services everyone needs, such as cleaning supplies, retail, utilities, and healthcare. Be smart with your investments and buy stocks that will remain solid, even when the economy tanks. Once the markets bounce back, you’ll be flying high.

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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Your Tax Refund Check

You might be asking yourself what you should do with your tax refund check once it comes in. We have a few suggestions that can help you get started building generational wealth for your family. Let’s take a look at how you can use today to plan for tomorrow.

Down Payment on a House

Are you looking to buy a house one day? Saving your tax refund money is an excellent idea and will help you toward achieving your goal. Down payments are not cheap, however, you might be able to find a program in your area that helps Black and brown families have an easier time purchasing a home. No matter what your tax refund might be, saving to buy a home is still a good idea. It might take you a few years to get to a place where you can afford it, but waiting a few years is worth owning a home in the end. The key to any long-term goal is patience, and if you hold that key, it won’t be long before you’ll be holding the keys to your own home.

Invest It

Another way to save your tax refund is to invest it. Here at Financial Joy School, we are staunch advocates of investing your money, and there’s nothing holding you back from investing your tax return. If you’re not sure what to invest in or where to even start, we have a few suggestions. 

• Mutual funds
• Individual stocks
• Series I Bond
• Government Bonds

Follow the links to read our blogs on these subjects, as we have written extensively on them. Investing is like planting seeds that grow over time to become a vast harvest. Your best bet with investing is to choose funds, bonds, and stocks that are strong during a recession and will give you the biggest returns. 

Some people even invest to save for that down payment on a house. Why? Because in a few years’ time, you’ll have even more money than what you put into your stocks, which helps you purchase your home a little sooner.

Plan for Retirement

If you have a retirement account, such as a traditional or Roth IRA, consider investing your tax return for retirement. These accounts only allow you to invest up to $6000 per year if you’re under 50 or $7000 per year if you’re over 50, but if you choose the right mutual funds, you’ll watch your retirement funds accumulate as time goes on. 

Saving for a home and investing in the stock market are the two fastest ways to build generational wealth and bless your family out of poverty. It’s tempting to take a few thousand dollars and have a little fun, such as go on vacation or buy the kids something nice, but consider your long-term goals and remember—the key is patience. By saving and investing today, you’ll give your family a bright and wealthy future tomorrow.

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

While it’s premature to declare the United States is in a full-blown recession, many say the writing’s on the wall. Should the US economy spiral into a recession, what are some things you can do to continue investing your money? Let’s take a look at some key strategies to keep in mind for your investments.

Invest in Essentials

There are many companies that sell and produce certain essential products, such as electricity and food, as well as certain household products, such as toilet paper and other necessary staples. If you take the time to invest in utility stocks or consumer staples, you’ll have your money invested in stocks that won’t be hit quite as hard during a recession. The reason for this is that everyone needs electricity, food, and toilet paper, so these stocks will not ebb and flow as much as the rest of the market. Cash is one of your best bets as well, so look into keeping a portion of your portfolio in cash or securities that are highly liquid. Money market mutual funds are perfect for this type of investment.

Be Smart, Buy Quality

One of the smartest things you can do when the economy takes a turn is continue to invest a fixed amount no matter what the market is doing. If you have committed to something small, perhaps $10 a week, stick to it, and don’t get discouraged. These tiny investments will grow over time, and that is the goal when building generational wealth.

You’ll also want to purchase quality investments, which are marked by low leverage, low beta, and high return. Look for companies with recurring high revenue—subscription-based business models are just such companies.

Be sure to avoid any growth stock during a recession. If your stocks are tied to a company that projects high growth, they will do much worse than stocks that pay dividends or investments that produce income.

Other Options

Consider dividend stocks. Even should the stock price of the company fall, it might continue to pay dividends. This will give your portfolio the cushion it needs through hard economic times. 

Another option is an actively managed fund. These funds outperform others by 4.5% to 6.1% each year within a recession—after certain adjustments are made for both expenses and risks.

Bonds are another attractive choice, as they also do well during an economic downturn. However, it is best to stick to investment-grade bonds to avoid rising defaults. 

Always Invest No Matter What

The best way to invest during a recession is to continue to do what you’ve been doing. No one can know the duration or the impact of a deflated economy, so it’s best to continue plodding on. A recession is not ideal for growing wealth, however the market overall continues to look forward as the years go on. Do not be swayed from investing due to a hiccup in the economy, rather, look toward building your future and continue to invest accordingly. 

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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is Expected Within Five Years

Over the next five years, it’s expected that the amount of millionaires worldwide will spike to upwards of forty percent, as reported by the Credit Suisse AG’s Global Wealth Report 2022. This report states that by 2026, the world will have millions of millionaires, about 87.5 million to be exact. But where are they all coming from? Let’s take a look. 

One in a Million

You might like to think the United States is the leader in creating millionaires—but you’d be wrong. The millionaire giant in question is none other than China. 

Despite the downturn in the Chinese economy due to the pandemic and the lockdowns that have permeated the country, the report from Credit Suisse says there should be a quick upswing of certain developing markets once the Chinese economy is on the rebound. The current projection is that private fortunes will grow by at least thirty-six percent, which seems optimistic, all things considering.

For instance, Wall Street plans to delist certain Chinese stocks in 2024, however the rivalry between China and the United States rages on with regards to energy, tech, and telecom industries.

Invest and Take Advantage

If the Chinese economy is fixing to boom once more, there are some ETFs you might consider purchasing. Their current low price makes them all the more attractive, and if you’ve been thinking about it, now’s the time to jump on the bandwagon. Once China begins to bounce back, they’re projected to do so quickly, considering the sheer size of their economy.

CXSE, or the WisdomTree China ex-State-Owned Enterprises Fund, might be an ETF to consider. Since it is not owned by the state, the fund is free to look toward emerging markets in which to invest, which means this ETF is much less risky than others from China. 

EMQQ, or the Emerging Markets Internet & Ecommerce ETF, might bring a fantastic opportunity. Both ecommerce and internet sectors have amazing potential for growth, which means this ETF could be a moneymaker once the Chinese tech industry revives. EMQQ would be much cheaper than similar ETFs out of the U.S. However, it would soon become the frontrunner in the tech sector due to the rapid advancement of China’s rebound overall.

Patience is Key

While ETFs out of China are inexpensive at the moment, don’t expect a fast return. Due to strict laws out of the pandemic, China’s economy will need to recover and that’ll take time. ETFs out of China are a great way to access industries with rapid growth easily without having to trust in any singular Chinese stock. However, with China’s track record in the tech industry as well as ecommerce, betting on these ETFs might just be the best thing you ever did. 

Perhaps one day you’ll look back and be happy you invested in the Chinese market when you had the chance, and count yourself among the world’s newest millionaires.

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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and Should You Invest?

You might have heard of bonds, but have you ever heard of a series I bond? There is much debate within the investing world about whether or not to invest in bonds. In today’s economy with inflation on the rise, investing in bonds can be risky. The risk is they could have a negative rate of return when the rise of inflation steadily climbs. However, many investors swear by bonds and insist they be a part of a diversified portfolio. Let’s take a look at the series I bond and learn more about it.

Series I Bond

The series I bond is a savings bond drafted by the US government that bears interest and is non-marketable. It combines a variable inflation rate (which is adjusted every May and November) and a fixed interest rate. These bonds are specifically designed to protect investors from inflation as well as giving them a return. Unlike the typical bond investment, the series I bond does not pose a risk with inflation, rather, it is advantageous for the investor when inflation skyrockets. 

These bonds are electronically issued, however, if you use a portion of your income tax refund, at least $50 worth, you can purchase series I bond paper certificates.

FAQs of Series I Bond

When considering an investment in series I bonds, you might want to know a few facts about them. These facts are:

• Series I bonds are drafted by the US government, bear interest, and are non-marketable
• Series I bonds offer investors returns and protects them against inflation
• Series I bonds are considered a low-risk investment
• Series I bonds cannot be purchased or sold in any secondary market
• Series I bonds boast a fixed interest rate throughout its entire lifespan and also a variable inflation rate that gets adjusted on the first business day of May and November
• Series I bonds mature over an initial 20 years with an extended period of 10 years, totaling 30 years.

A Low Risk Investment

Series I bonds are considered low risk because they are designed to give a return during inflation as well as offer inflation protection. This is done by the Secretary of the Treasury, who declares the fixed interest rate for the next six months every first business day of May and November. All bonds issued within that six-month timeframe have the same fixed rate and will not change at all throughout the bond’s entire life.

The inflation rate is also announced in May and November and follows the Consumer Price Index (CPI), which determines the rise or fall of inflation within the economy. This fluctuating rate is then applied to every bond during every six-month period, beginning from the date the bond was issued.

What a Series I Bond Means for You

Series I bonds are low risk as they are guaranteed to retain their value by the US government. This means their value will not decline no matter how wildly the economy fluctuates. However, this rock-solid safety comes with a low rate of return. These returns are similar to a certificate of deposit (CD) or a high-interest savings account. Other bonds, such as municipal or corporate bonds, actually lose value, however the promise of a higher return might offset the risk of losing value. 

If you’re interested in bonds, the series I bond is a safe bet for your money and a potential launching pad to enjoying a more diverse investment portfolio.

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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