Investing in a Financial Crisis
for Black Families
In today’s financial climate, every Black family in America has been hit hard by inflation and the rising cost of living. When money is tight, it’s tempting to cut back on extra expenses that might not be essential. Looking at your budget to figure out where you can make some cuts and have more money in your pocket is a smart thing. While it might be tempting to cut back on investing, you could be taking a huge step backward by doing so. Let’s find out why.
One of the biggest reasons to continue investing is that your money grows over time. Investing, no matter the state of the economy, is playing the long game. You are not investing today to have money tomorrow, rather, that you and your family will have money many years from now. In other words, your investing decisions today will affect your future wealth. It doesn’t matter how much you invest, even if only $1 a week. The key is not necessarily the amount you’re able to invest, it is staying consistent and investing regularly. Even a small amount can grow. It might not grow as fast or as much as you’d like, but it will eventually become more money than you have right now.
Building Generational Wealth
While skimping on investing might save a buck right now, it takes away what could one day become vast generational wealth. You’re not only investing your money, you’re investing in the future of your family. This includes your immediate family, yes, but the ripple effects of your investment decisions will also affect your grandchildren and great-grandchildren as well. What you set aside today will become the financial survival of generations to come.
Building generational wealth is essential and should be viewed as a necessity when going through your finances. You might not be able to build your wealth quickly, but if it’s steady and consistent, you’ll one day stand amazed at how much you were able to gain in the stock market by simply committing to $1 or more a week.
Keep On Investing
The fact remains that no matter the amount you invest now, it will one day affect your family’s future wealth. If Black families cut investing from their tight budgets altogether, there is no other guarantee they’ll ever be able to scrape themselves out of poverty. Investing in stocks, mutual funds, ETFs, and the like is the path to greater wealth for Black families. We owe it to ourselves, our children, and our grandchildren to invest in the stock market and secure their financial future.
Tighten your budget and commit to investing. Both can be done, and both will greatly benefit you. One day you’ll look back at hard times and be so glad you continued investing even when it seemed the odds were stacked against you. The wealth you’ll accumulate will speak for itself.
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.