Financial Advice

Emergency!!

I think it’s safe to say that many people, millennials mostly, are not set up to financially handle an emergency. If you follow Dave Ramsey, his first Baby Step is to have an emergency fund of $1,000. To be clear, I don’t necessarily follow his steps, but I do agree with having an emergency fund.

For some, $1,000 is a lot to attempt to save, while for others, like myself, $1,000 doesn’t seem like enough to save. If anything, I believe, to start, $2k-$3k is a good place to start. I know for many that will be a struggle, but in all honesty, it’s necessary.

Before beginning a debt free journey, while you’re being all gazelle intense (meaning throwing every cent at debt), it’s wise to have a cushion in case something was to happen. Outside of your bills, of you are throwing every cent to debt and working a $0 budget, that means you have no money left. If you don’t have an emergency fund, you are screwed. To literally have $0 in the bank, that’s ludicrous. This is why it’s best to have an emergency fund before starting this journey.

Things will arise, major things that you didn’t expect or plan for, that will throw a wrench into your progress. That’s life and you need to be prepared at all times for it. Unknown that when I started this journey, I had a car that was causing me problems. I blew threw my emergency fund for repairs. Despite having to empty my EF account, I was glad I had the money to do it. Had I not, I’m not sure how I would’ve been able to get to work and make the money to pay off debts.

I say all this to say, do not start any kind of financial journey that requires significantly large amounts of money to be spent, if you don’t have an emergency fund. Period.

Financial Advice

Financial Friday: Why are Black People in So Much Debt?

DISCLAIMER: I AM NOT A FINANCIAL COACH OR ADVISOR

Out of all Americans, my people are the most in debt. We have the highest debts, even those of us who live in low income areas. Why? I blame lack of knowledge, the environment, rappers, Black reality shows, financial ignorance, etc. There are many things to blame and I want to express my reasons for a few.

Rappers

Everyone wants to be a rapper nowadays. To most it is the quickest way to get rich and they all want money to throw on cars, clothes, jewelry, etc. These rappers promote a lifestyle that is not attainable by most, and this keeps my people down, struggling, dying and who knows what else. This lifestyle that so many want to attain, is not even real. These rappers aren’t happy with this lifestyle and are selling their souls to promote it. All these rappers rap about are drugs, sex, women, drinking, cars and money. But reality is, most of these rappers have never experienced any of the things I listed above. My people, stop letting these rappers lyrics fill your head with empty hopes and dreams. Either the person becomes broke, lands in jail or is murdered for not paying their dealer on time, in full. Yeah, drug dealers don’t have payment plans.

Reality Television

Excuse my French, but reality television is shit and it is a damn shame that my own people would act so ignorant, foolish and like a stereotype for the entire world to see, just for a paycheck. Why would anyone want to be like that? This shows us in a bad light and we watch it, wanting to be like them and have money and be fancy and show off for people when we don’t even have that kind of money. Many of these reality stars don’t have that kind of money. Stop going broke just to be able to promote ignorance like these reality stars. Many of these reality stars are doing reality television because they are broke and in debt. That is not an excuse but it’s the truth.

Lack of Knowledge

Many of our parents grew up poor and in low income areas. We tend to be like our parents because they are our first teachers. We mimic what they do. Many of our parents didn’t finish school or get a proper education and some of us fall victim to that. They didn’t have the mindset of wanting to get out and not be like their parents, which causes them to make horrendous financial choices, then we follow suit. Many of our parents didn’t and still don’t know about credit cards, loans and any money that you have to pay back. This is our downfall. Many credit companies target Black people to get them in debt and keep them slave to a system that has been out to destroy us. I fell victim to that.

College

Because of a want for diversity, many colleges target kids in low income areas, bribing them with huge scholarships, not telling them that eventually they will have to take out student loans. This false advertisement is for the student to come to their school so that the school gets money, with no regards to that student’s financial future. Schools purposely do this because they know these kids can’t afford to go to college, and even though they may drop out, the schools still get that money. Or you have those like myself who did not qualify for free money and had to take out student loans my entire college career with no knowledge of how loans would affect me financially.

Conclusion

There are many other reasons like credit cards, not being able to manage money, the death of a family member who’s financial burden falls on you and so much more, but this post would be exceptionally long. There are so many factors that play a part in why Black people are in so much debt. I want my people to educate themselves on credit cards, loans, leases, mortgages, anything that requires money. Below are some resources to help you out.

Resources:

Financial Peace,

Afro Vegan Hippie