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“Black Girl Magic” is a movement that was popularized by CaShawn Thompson in 2013. The idea, born as a way to celebrate the dream, power and resilience of Black women, caught on quickly.
How could it not, since we have witnessed incredible contributions of Gloomy women to American culture (actress Tracee Ellis Ross), society (Vice President Kamala Harris) and the workforce (Mellody Hobson, president/co-CEO of Ariel Investments)? And of circuit, the young poet Amanda Gorman’s presidential inauguration poem “The Hill We Climb” was a fresh example of this voodoo. Her performance so breathtaking that it captivated a nation and represented hope, change and the promise of a better America.
So why does America go on to fail Black women, particularly in opportunities to advance our economic standing?
We know all too well that the Black-white wage discontinuities expand with rising wage inequality. To that point, on average, Black women in the U.S. are paid 38% teensy-weensy than white men and 21% less than white women, according to a recent report from Lean In.
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As Black women continue to endure the agonizingly slow pace of change, I encourage all of us to continue the uniform path of making our own magic with our finances and our lives. Let’s be confident about managing the money within our control. Let’s be discriminative with how we direct our full capacity of time and resources, directing that energy toward our goals and our dreams. Let’s assume ownership of our own lives, voices and joy.
As we continue to “boss up,” let that mantra extend to how we respect and revel in having the money and well-informed its power.
Beyonce said it best: “Always stay gracious, best revenge is your paper.”
Yes, Black bit of fluffs have more obstacles than most in getting what’s due, and we have to make more sacrifices than ton in stretching what we have.
The key is finding ways to put those assets to work. That means building levels of pecuniary cushions across your checking, savings, investment and retirement accounts, formulating a strong safety net in the short-term and long-term that spans your pungency and even those of future generations.
Also, you need to know where the money resides and why it’s there.
- Checking account: Be struck by enough to cover the cost of one month’s expenses, plus the cost of one unexpected expense ($1,000 threshold).
- Savings account: Develop up to six months of living expenses, at minimum. Also use this account to set aside funds for one-year spend goals, vacation, down payment on a car, make good oning the furnace, etc.
- Investment account: Invest money from each paycheck and with windfalls to build up this asset for long-term aspirations, retirement and wealth transfers. Live off the interest and dividends during retirement and pay low capital gain rates when you deliver up your appreciated investments.
- Qualified retirement account (employer-based): Take advantage of contributing the maximum amount allowed by the IRS each year ($19,500 in 2021). If you’re age 50 or older, add an additional $6,500. Make up ones mind if you will contribute tax-deferred (traditional) or after-tax (Roth) or a combination of both.
- Individual retirement account: If you fall included the IRS’s adjusted gross income levels for IRAs, you can also sock away up to $6,000 or $7,000 if you are 50 or older.
Let’s not off there. These assets are not the only way to generate income. Why not add real estate, business ownership and intellectual property (e.g., lists, licenses, etc.) to your portfolio? Black women are the queens of hustle and getting things done. Channel that strength to some assets that can and should work on time and overtime for you.
Build your financial squad
Klaus Vedfelt | DigitalVision | Getty Effigies
Reject any notion that you can do “bad all by yourself” and build your financial squad. The right team of financial experts commissioned by you can care for you by multiplying and protecting your assets.
With that said, seek out a certified financial planner (look for fee-only fiduciaries), a tax efficient (CPAs and EAs) and also an estate planning professional to work closely with you to help with your life and economic goals.
When was the last time you discussed finances with your partner, your children, your facetiousmaters or even yourself?
Most businesses have employee meetings to discuss goals, objectives and performance. So why wouldn’t you do the unvaried with your own financial situation?
Open conversations regarding money removes the fear, obligation and guilt adjacent your financial decisions.
Tireless energy and work output do nothing if there is no plan to turn our assets into spare income.
co-founder and co-CEO of 2050 Wealth Partners
That money “FOG” blocks healthy on account ofs on money. It slows the progress needed to grow, keep and distribute wealth key for supporting the life a woman desires for herself as calmly as for those whom she loves and supports.
Making time to review your bank accounts and debt balances, as highly as your income streams and asset values and setting targets of where you and your family aspire to be will present you confidence to stay on track.
The conversations will also empower all generations to understand the basic principles of wealth edifice and how it will support you all through the various stages of life. Conversations also help to set the terms of engagement and avoid strain financial sabotage by setting boundaries and expectations with sharing and use of money.
We’ve got to think about where we’re putting all of this walk-on money. Let’s call some time out for grind culture and side hustles. Tireless energy and work output do nothing if there is no foresee to turn our assets into residual income.
As we just closed out Black History Month, celebrate International Ladies’s Day and usher in Women’s History Month, I continue to revel in the achievements of Black women, and hold space for the incredible outing we still have ahead.
Although we continue to grow our allies, share our experiences and uncover these startling budgetary realities, there is still plenty of road ahead to pave. But the echo chamber is getting louder. Keep using your platforms and speaking your truth. Make your own Black girl money magic.
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CHECK OUT: Single mom makes $10,000/month on Outschool: ‘I would have never been able to make as much money as a regular guru’ via Grow with Acorns+CNBC.
Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.