Black Americans account for 13.6% of the population, yet the representation of certified financial planners who are Black is significantly lower at just 1.9%. However, there is a group of influential and knowledgeable Black financial professionals who are dedicated to bridging the racial wealth gap and empowering individuals of color to achieve financial success. These black financial influencers, also known as black money experts or African American finance gurus, are sharing their insights and expertise to help more consumers save, plan, and invest.
In this article, we have consulted some of the best black financial influencers to provide you with valuable tips on money management, recession-proof strategies, long-term job security, and investment advice for the year ahead. Their unique perspectives and expertise offer a holistic approach to personal finance and wealth-building, specifically tailored to the needs of the Black community.
Key Takeaways:
- Black financial influencers aim to address the racial wealth gap and help consumers of color save, plan, and invest.
- During a potential recession, focus on what you can control, such as shoring up your emergency fund and stockpiling cash.
- Developing additional skills through certifications and exploring recession-proof industries can enhance long-term job security.
- Investment strategies for 2023 include long-term investing in index funds, considering short and long-term goals, and prioritizing tax-advantaged accounts.
- When it comes to cryptocurrencies, exercise caution, understand the risks, and only invest what you are comfortable losing.
Smart Money Moves to Consider Ahead of a Possible Recession
As the possibility of a recession looms, it’s crucial to make smart money moves to protect your financial well-being. We spoke to some of the best Black financial influencers to gather their insights and strategies for navigating these uncertain times.
Building Up Your Emergency Fund
Mandi Woodruff-Santos emphasizes the importance of shoring up your emergency fund. This fund acts as a safety net during times of financial instability, providing you with the necessary funds to cover unexpected expenses or job losses. Woodruff-Santos advises saving at least three to six months’ worth of living expenses in your emergency fund.
“Having a solid emergency fund is crucial in times of economic uncertainty. It provides a sense of financial security and allows you to weather any storm that may come your way,” says Woodruff-Santos.
Stockpiling Cash and Paying Off Debt
Michelle Singletary suggests stockpiling cash to carry you through a potential job loss. By having a reserve of cash on hand, you can cover your essential expenses while searching for a new job or waiting for the economy to recover. Singletary also advises focusing on paying off consumer debt, such as credit card balances or personal loans, if you don’t anticipate a job loss in the near future.
“Reducing your debt burden can provide a sense of financial freedom and alleviate stress during uncertain times. It’s a smart move to prioritize paying off high-interest debt to improve your overall financial well-being,” advises Singletary.
The Importance of Cash and High-Yield Savings Accounts
Rianka R. Dorsainvil emphasizes the importance of cash, particularly with the Federal Reserve raising interest rates. Dorsainvil recommends maintaining a high-yield savings account to take advantage of the positive side of interest rate increases. These accounts offer higher interest rates than traditional savings accounts, allowing your money to grow faster.
“By keeping your cash in a high-yield savings account, you can earn a competitive interest rate and offset some of the effects of inflation. It’s a smart move to make your money work for you,” suggests Dorsainvil.
| Smart Money Moves to Consider Ahead of a Possible Recession | Benefits |
|---|---|
| Building up your emergency fund | Provides financial security during times of uncertainty |
| Stockpiling cash and paying off debt | Covers expenses during job loss and reduces financial stress |
| The importance of cash and high-yield savings accounts | Maximizes interest earnings and offsets inflation |
Starting a Side Hustle for Long-Term Job Security
If you’re looking to enhance your long-term job security, starting a side hustle can be a smart move. Not only does it provide an additional stream of income, but it also allows you to develop new skills and expand your professional network. Here are some tips from black financial influencers on how to kickstart your side hustle:
Creating a Digital Brag Box:
Melissa Jean-Baptiste suggests creating a digital brag box to showcase your skills and attract potential clients or employers. This can be a website, portfolio, or even a social media profile where you highlight your expertise and previous work. A well-curated digital presence can help you stand out in a competitive market and demonstrate your value to potential customers.
Seeking Skill Development Opportunities:
Chelsea Ransom-Cooper advises seeking additional opportunities to develop your skill set, even if you currently have a stable job. This can include taking online courses, attending workshops, or obtaining certifications related to your field or desired side hustle. By continuously learning and expanding your skill set, you not only increase your value as a professional but also open up new avenues for income generation.
Expanding Your 9-to-5:
Chris Browning highlights the importance of making the most of your 9-to-5 job and consistently finding ways to develop and add more to your resume. Look for opportunities to take on additional responsibilities or projects that align with your side hustle goals. This not only allows you to gain relevant experience but also demonstrates your commitment to growth and adaptability.
Starting a side hustle requires dedication, time management, and a clear understanding of your goals. While it may seem challenging at first, the benefits of long-term job security and skill development make it a worthwhile endeavor. By following the advice of these black financial influencers, you can set yourself on a path towards financial independence and career growth.
Table: Side Hustle Ideas
| Side Hustle | Description | Skills Required |
|---|---|---|
| Freelance Writing | Provide written content for websites, blogs, or publications | Excellent writing skills, research abilities |
| Graphic Design | Create visual designs and branding materials | Proficiency in design software, creativity |
| Virtual Assisting | Support businesses remotely with administrative tasks | Organizational skills, communication abilities |
| Consulting | Provide expert advice and guidance in a specific field | Industry knowledge, problem-solving skills |
| E-commerce | Sell products or services online through platforms like Etsy or Shopify | Marketing skills, product knowledge |
Investment Strategies for 2023
When it comes to investing in 2023, black financial influencers have shared their expert insights and strategies. From focusing on long-term index fund investments to exploring distressed assets and maximizing tax-advantaged accounts, there are various approaches to consider for building wealth and achieving financial goals.
| Financial Influencer | Investment Strategy |
|---|---|
| Kevin L. Matthews II | Long-term investing in index funds |
| Ayesha Selden | Considering short and long-term goals, looking for distressed assets |
| Dominique Broadway | Buying stock in favorite companies monthly, increasing real estate portfolio |
| Chelsea Ransom-Cooper | Prioritizing investing in tax-advantaged accounts like a Roth IRA |
Kevin L. Matthews II advocates for long-term investing in index funds. These funds provide diversification and allow investors to passively track the performance of broad market indices. This strategy aligns with the idea of consistent and gradual wealth accumulation over time.
Ayesha Selden suggests considering both short and long-term goals when investing. She encourages investors to seek out distressed assets, which may offer potential opportunities for significant returns. By carefully assessing risk and understanding market trends, investors can identify assets that align with their investment objectives.
Dominique Broadway takes a different approach by buying stock in her favorite companies every month. This regular investment strategy allows her to capitalize on market fluctuations and benefit from dollar-cost averaging. Additionally, she focuses on expanding her real estate portfolio, which can provide both income and potential appreciation over time.
Chelsea Ransom-Cooper emphasizes the importance of prioritizing investments in tax-advantaged accounts like a Roth IRA. These accounts offer tax-free growth and withdrawals in retirement, providing a valuable tool for long-term wealth accumulation. By leveraging the tax benefits of these accounts, investors can optimize their investment returns.
Each black financial influencer brings their unique perspective and expertise to investment strategies for 2023. By considering these insights and tailoring them to individual financial goals and risk tolerance, investors can make informed decisions to grow their wealth.
Cryptocurrency and Asset Safety
In today’s digital age, cryptocurrencies have gained significant popularity as an investment option. However, with this rise in popularity comes concerns about asset safety. Recent cyber attacks and the lack of oversight and traceability in the cryptocurrency market have raised questions about the security of these digital assets.
As Rianka R. Dorsainvil advises, caution is essential when investing in cryptocurrencies. It’s crucial to thoroughly research and understand the risks involved before jumping into this volatile market. While cryptocurrencies like Bitcoin and Ethereum have experienced significant rebounds, it’s important to remember that their value can also plummet, resulting in substantial financial losses.
“I would urge investors to only invest what they are willing to lose,” says Dominique Broadway.
Despite the risks, some individuals still see the potential of cryptocurrencies as a decentralized form of currency. However, it’s vital to consider the potential threats posed by cyber attacks and the lack of centralized oversight. Taking the time to educate oneself about the technology and implementing strong security measures can help protect against potential risks.
Risks and Volatility
Chris Browning emphasizes the risk and volatility of cryptocurrencies. Their value can fluctuate significantly within short periods, making them a speculative investment. This volatility also means that cryptocurrencies may not be suitable for risk-averse investors or those looking for stable long-term returns. Understanding these risks and being prepared for the potential downside is essential when venturing into the cryptocurrency market.
| Risks of Cryptocurrencies | Ways to Mitigate Risks |
|---|---|
| 1. Cyber attacks and hacking | – Store cryptocurrencies in secure wallets and use multiple layers of security measures – Regularly update software and utilize strong passwords |
| 2. Lack of regulation | – Research and choose reputable cryptocurrency exchanges – Be cautious of new, unproven cryptocurrencies |
| 3. Market volatility | – Diversify your investment portfolio – Only invest what you are willing to lose |
While cryptocurrencies offer potential opportunities for investors, it’s crucial to approach them with caution. Understanding the risks involved, implementing robust security measures, and being prepared for market volatility can help protect your assets. Only invest in cryptocurrencies if you have a thorough understanding of the technology and are willing to accept the potential financial risks.
More about the Influencers
In this section, we will introduce you to some of the most influential black financial experts who are making waves in the personal finance industry. These individuals have dedicated their careers to empowering others through financial education and advocacy. Let’s take a closer look at their backgrounds, areas of expertise, and the platforms they use to share their knowledge.
Dominique Broadway
Dominique Broadway is a renowned financial educator and wealth coach. With over a decade of experience, she specializes in helping individuals build generational wealth and make smart investment decisions. Broadway uses her platform to raise awareness about financial literacy and economic empowerment in communities of color. Through workshops, speaking engagements, and her popular blog, she provides practical advice and strategies for achieving financial success.
Chris Browning
Chris Browning is a financial expert and the host of the popular podcast “Popcorn Finance.” With a focus on simplifying complex financial concepts, Browning provides valuable insights on budgeting, saving, and investing. He is passionate about helping individuals take control of their finances and achieve their financial goals. Through his podcast and social media platforms, Browning shares practical tips and engaging stories to inspire and educate his audience.
Rianka R. Dorsainvil
Rianka R. Dorsainvil is a certified financial planner and founder of Your Greatest Contribution, a financial planning firm. As a strong advocate for financial literacy, she works towards bridging the wealth gap by providing accessible and relevant financial guidance. Dorsainvil utilizes her expertise to help empower individuals to take control of their finances, build wealth, and plan for a secure future. Through her podcasts, workshops, and mentorship programs, she aims to make financial education inclusive and accessible to all.
And Many More
These are just a few examples of the incredible black financial influencers who are making a difference in the industry. There are numerous others, including Michelle Singletary, Mandi Woodruff-Santos, Ayesha Selden, and Kevin L. Matthews II, who are sharing their expertise and empowering individuals to achieve financial success. Each influencer brings their unique perspective and expertise, contributing to the overall mission of promoting financial literacy and building wealth in communities of color.
Conclusion
In conclusion, these black financial influencers offer valuable insights and advice for managing money, navigating economic uncertainty, and building wealth. Their diverse perspectives and expertise contribute to bridging the racial wealth gap and empowering individuals to achieve financial success. By following their guidance, individuals can gain the knowledge and tools necessary to create a solid financial foundation and work towards their long-term financial goals.
FAQ
What are some smart money moves to consider ahead of a possible recession?
Mandi Woodruff-Santos advises focusing on what you can control, such as shoring up your emergency fund. Michelle Singletary suggests stockpiling cash to carry you through a job loss and paying off consumer debt if you don’t fear a layoff. Rianka R. Dorsainvil emphasizes the importance of cash, particularly with the positive side of the Federal Reserve raising interest rates. Maintaining a high-yield savings account can be rewarding.
How can I start a side hustle for long-term job security?
Melissa Jean-Baptiste recommends creating a digital brag box to showcase your skills and looking for recession-proof industries. Chelsea Ransom-Cooper suggests seeking additional opportunities to develop your skill set through certifications, even if you are laid off. Chris Browning highlights the importance of making the most of your 9-to-5 job and consistently finding ways to develop and add more to your resume.
What are some investment strategies for 2023?
Kevin L. Matthews II focuses on long-term investing in index funds. Ayesha Selden advises considering short and long-term goals when investing and looking for distressed assets. Dominique Broadway shares her strategy of buying stock in her favorite companies every month and increasing her real estate portfolio. Chelsea Ransom-Cooper emphasizes the importance of prioritizing investing in tax-advantaged accounts like a Roth IRA.
How should I approach cryptocurrency and asset safety?
Rianka R. Dorsainvil advises caution when investing in crypto due to recent cyber attacks and the lack of oversight and traceability. Dominique Broadway expresses confidence in the rebound of cryptocurrencies like Bitcoin and Ethereum but urges investors to only invest what they are willing to lose. Chris Browning emphasizes the risk and volatility of cryptocurrencies and suggests taking the time to understand the technology before investing.
Who are the black financial influencers mentioned in this article?
The black financial influencers mentioned in this article include Dominique Broadway, Chris Browning, Rianka R. Dorsainvil, Mandi Woodruff-Santos, Michelle Singletary, Melissa Jean-Baptiste, Chelsea Ransom-Cooper, Kevin L. Matthews II, Ayesha Selden, and more. Each influencer has their own unique expertise and platform for sharing financial knowledge and empowering others.
