The Woke Woman’s Guide To Building Generational Wealth
Try to escape a conversation about money. Whether it's a new poll showing that blacks aren't prepared for retirement, actress Kerry Washington urging women to be "financially literate," or Jay-Z rapping about generational wealth - conversations about money are all around us.
Honestly, these are topics that I've avoided like Trump speeches for years based on bad financial choices from the past. But burying my head in the sand won't change anything and, the truth is, black women are winning in business. It can't be said enough that we're the fastest growing group of entrepreneurs in this country and our businesses generate $51.4 billion in revenues. Those are the kind of numbers that motivate a girl to get it together.
That and my kids.
I want to give them a better life than I had and enough money to never have to struggle when I'm gone. So, how do I get there? According to financial advisor Lola C. West, who has been educating people about money for over 20 years, building the type of wealth that can be passed down to future generations is easier than we might think. In fact, a lot of it has to do with awareness and the right mindset.
The key to generational wealth is having awareness and the right mindset.
Fortunately, she's broken down some gems about building generational wealth that can strengthen our financial literacy IQ exponentially, whether we're new to the conversation or just brushing up. So, in the spirit of sharing, here's the Woke Woman's Guide To Building Generational Wealth!
It Never Too Late To Start Saving
It's never too late to start building wealth. First, you have to know how much it costs to be you. If you spend more than you make, then you have to look at your daily habits and create a budget. At least, 10% or more of your income should go into a savings that you don't touch, and it's critical to have at least six months of living expenses saved up in case you lose your job.
Also, the first day you start a job, take out the max (in 2017, $18,000 per year, and $24,000 for 50 years of age and over) for your retirement account. By taking out the maximum amount, it could put you into a lower tax bracket, which could save you more money.
If you're self-employed, put at least 30% of what you earn away for taxes.
You could also speak to a financial advisor about setting up an SEP IRA. A Simplified Employee Pension Individual Retirement Account allows entrepreneurs, or anyone with freelance income to open an account and make tax-deductible contributions. Like a traditional IRA, the money in a SEP IRA is not taxable until withdrawal and business owners can contribute up to 25% of income, or $53,000, whichever is less.
Educate Your Kids About Budgeting and Good Money Habits
We have to look at the conversations we have at home about money and what we are teaching our children. For example: giving a child as young as five years old a $5 weekly allowance can build their understanding of money. 1/3 of that money could go to a savings account, 1/3 could be for philanthropy, and 1/3 for spending....NO CANDY!
By taking a child into the bank, they understand this is an institution. An ATM does not leave that impression. Explain that if you buy something with a credit card today, a bill will be at your doorstep in 30 days, and if you don't pay on time there are late fees. You can also give them things to budget. For example: give them the amount of money you plan to use for back-to-school clothes and let them help make the list based on how much you have to spend.
Invest In Your Child's Future
Also, establish a 529 College Fund account when your child is born, and every birthday, Christmas, and holiday that your child gets money - at least 50% of it should go into a savings vehicle. If you have significant assets or a child with special needs, establishing a trust with the support of a qualified estate attorney can be a powerful way to foster the longevity of assets and/or protect the welfare of your child throughout their lifetime.
Multiple Streams of Income and Diversifying Investments
I always use the analogy that if you're in an elevator that has three cables and one of them breaks, the other two will still hold it up. It's the same with multiple streams of income. If one stream doesn't work, the others should help balance. It's also the strategy behind diversifying investments between three asset classes: stocks, bonds and cash.
Stocks are the equity that you buy when a company is selling shares. You can buy one, two, or many. Bonds are considered fixed income. For instance, a company says if you give me $1,000, I will pay you 4 percent interest for the year. At the end of the year, I will give you back your $1,000 and you will have received $40 for letting us use your money.
Cash is the money you put in a bank that they pay you interest on. Interest rates for savings accounts are low now, but save anyway! You continue to earn because of the compounding effect of interest, which is interest on top of interest earned when you don't withdraw your money.
Property Investment
People often ask if buying a house is still a good investment? Yes. Because it allows you to build equity. You build equity in a house as you pay down your mortgage. The less you owe on the property, the more equity you have. When you have equity in your home, you can "borrow" money against it - we call that refinancing your home. The danger is mortgaging your home to its market value. You will then have no equity in your home. Property is one of the main assets that are passed from generation to generation.
Deeds And Setting Up A Will
A deed and a will are very important. A deed establishes ownership of a piece of property. If you and your partner buy a house, it's important that both names be on the deed so there are no issues when transferring the property to someone else. Because of the complexity of federal and state laws, we recommend working with a qualified estate attorney to draft your will to lessen the possibility of family conflict. Be specific in terms of what you want each child to have, even children you don't wish to leave anything, so that your will won't be contested. For example: each child should be mentioned by name and left something, even if that sum is $1, so it is clear that the child was not forgotten, and he or she can't contest your will.
Study Wealth Building
One of the best ways to build the wealth you desire is research. Attend workshops, study online, find a mentor, etc. There's a great book called 50 Billion Dollar Boss: African American Women Sharing Stories of Success in Entrepreneurship and Leadershipthat I strongly recommend because it highlights how successful black women worked through the challenges of creating their businesses. When you look at generational wealth beyond dollars and cents, it's also our stories of resilience that we want to pass down to future generations.
Lola C. West is a co-founder and managing director at WestFuller Advisors.
Featured image by Shutterstock
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ItGirl 100 Honors Black Women Who Create Culture & Put On For Their Cities
As they say, create the change you want to see in this world, besties. That’s why xoNecole linked up with Hyundai for the inaugural ItGirl 100 List, a celebration of 100 Genzennial women who aren’t afraid to pull up their own seats to the table. Across regions and industries, these women embody the essence of discovering self-value through purpose, honey! They're fierce, they’re ultra-creative, and we know they make their cities proud.
VIEW THE FULL ITGIRL 100 LIST HERE.
Don’t forget to also check out the ItGirl Directory, featuring 50 Black-woman-owned marketing and branding agencies, photographers and videographers, publicists, and more.
THE ITGIRL MEMO
I. An ItGirl puts on for her city and masters her self-worth through purpose.
II. An ItGirl celebrates all the things that make her unique.
III. An ItGirl empowers others to become the best versions of themselves.
IV. An ItGirl leads by example, inspiring others through her actions and integrity.
V. An ItGirl paves the way for authenticity and diversity in all aspects of life.
VI. An ItGirl uses the power of her voice to advocate for positive change in the world.
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The Power Of Your Big 3: Understanding The Astrological Significance You Hold
Explore your sign’s 2024 horoscope predictions to learn what is in store for you this year in love, career, and more. Check out the love compatibility of each sign to learn more about zodiac pairings and all things compatibility.
Astrology has become even more mainstream and a phenomenon than it ever has in the past. We have gone beyond the, “What’s your sign?” and have moved into “What’s your big 3?” seemingly overnight, and rightly so due to the significance of knowing these important details. Your Big 3 in Astrology represents your sun sign, your moon sign, and your rising sign.
This trifecta is thought to be one of the most significant details of your birth chart and gives you and others more of a full-picture look at who you are beyond just your sun sign.
What Does Your Big 3 In Astrology Say About You?
Knowing your big 3 is important, especially if you are someone who has never really resonated with your sun sign. You read about what it means to be an Aries, but may not align with what you see or your experience with other Aries. Meanwhile, the whole time, you have a Libra rising, the complete opposite sign of Aries, and this is why you have always seen yourself as a more laid-back and less confrontational Aries.
Elements hold a key role in your birth chart and having a big 3 where the elements are all compatible or the same often signifies someone who knows who they are and is comfortable in their skin. Whereas someone with a different element for each part of their big 3 may have challenges with identity or defining who they are or how they want to present themselves. It’s a different type of perspective when looking into your big 3, and it helps you see where your strengths and needs are in life, and how to tap more into this potential.
Your Big 3 In Astrology Explained
Your big 3 can help you navigate life by understanding which part of you comes out more in different circumstances. At home, you are most like your moon sign, when you are out and about, you are most like your rising sign. Whether you are at home or out and about, your goals, purpose, and interests are most like your sun sign.
You can find out what your big 3 is by looking up a ‘Birth Chart Calculator’ on your search engine, typing in your birthday details (you will need to know your birth date, location, and the exact time you were born), and generating your birth chart.
Read below for your sun, moon, and rising signs.
YOUR SUN SIGN
Your sun sign represents the core of you and what motivates you to shine and be your best self. This is your personality, goals, purpose, identity, ego, interests, direction, and where you light up in life.
FIRE SUN (Aries Sun, Leo Sun, Sagittarius Sun)
If you are an Aries sun, a Leo sun, or a Sagittarius sun, you are outgoing, confident, fearless, and in tune with yourself and your personal goals and desires in life. You go after the things you want, and you are not afraid to take up space. You are someone who prefers to be more independent, and you are often in more leadership roles in life.
EARTH SUN (Taurus Sun, Virgo Sun, Capricorn Sun)
If you are a Taurus sun, a Virgo sun, or a Capricorn sun, you are grounded, dependable, loyal, hard-working, and logical. You prefer the finer things in life but also work hard to get where you are. You are someone others feel they can rely on, and you are often a support for other people in your life. You are very connected to the material sides of life, and have a gift for manifesting.
AIR SUN (Gemini Sun, Libra Sun, Aquarius Sun)
If you are a Gemini sun, a Libra sun, or an Aquarius sun, you are light-hearted, free-flowing, intelligent, and communicative. You speak what is on your mind, and you love to connect and communicate with others. People know you for the things you say and your out-of-the-box ideas, and you are someone who is open-minded and provides a safe space for people to be authentically themselves.
WATER SUN (Cancer Sun, Scorpio Sun, Pisces Sun)
If you are a Cancer sun, a Scorpio sun, or a Pisces sun, you are thoughtful, generous, emotional, loving, and compassionate. You care deeply about the people you love, and you are always there for others. You may be more emotional than most, and this is due to your strong intuition and open heart. You are creative, inspiring, and motivated towards connection in life.
YOUR MOON SIGN
Your moon sign represents your emotions. This is the way you express yourself emotionally, how you process your emotions, what you need in love, what makes you feel safe and nurtured, your desires, intuition, your inner world, and what’s going on beneath the surface.
FIRE MOON (Aries Moon, Leo Moon, Sagittarius Moon)
If you are an Aries moon, a Leo moon, or a Sagittarius moon, you are someone who is not afraid to communicate your emotions or how you are feeling, and you can feel your emotions from a mile away. You are confident in yourself and are someone who stands up for what you feel is right. You have a strong need to be seen and heard in your relationships, and a certain type of understanding is needed for you to emotionally thrive. You may have some challenges with anger or high energy and are working through emotional impulses in this lifetime.
EARTH MOON (Taurus Moon, Virgo Moon, Capricorn Moon)
If you are a Taurus moon, a Virgo moon, or a Capricorn moon, you are someone who is emotionally grounded, safe, comforting, and logical. You aren’t overly emotional and may not show your emotions to people much at all, but that doesn’t mean you don’t have them. You think before you speak, and you process your emotions before acting on them, and you tend to be more down-to-earth and understanding when it comes to other people’s emotional worlds as well. You are someone people go to when they need someone to talk to you as you are a very good listener.
AIR MOON (Gemini Moon, Libra Moon, Aquarius Moon)
If you are a Gemini moon, a Libra moon, or an Aquarius moon, you are someone who is fun, outgoing, and emotionally open-minded. You don’t like heavy emotions or too much emotional drama, and you tend to be more go-with-the-flow in this area of your life. Good conversation and mutual understanding are very important to you in your relationships and you want funny banter and inspiration in your connections with others.
WATER MOON (Cancer Moon, Scorpio Moon, Pisces Moon)
If you are a Cancer moon, a Scorpio moon, or a Pisces moon, you are someone who lives by their heart and values your emotional world deeply. You crave a deep type of intimacy in your partnerships and you need a partner who is going to give you that type of emotional connection. You are more private with your emotional world and you tend to hold a lot in, but this can often lead to sudden outbursts as well. Overall, you are the definition of emotion and others learn a lot from you on what it means to love and to feel.
YOUR ASCENDANT (RISING SIGN)
Your ascendant sign represents your perception and the energy you put out into the world. This is the way you come across to others, the way you express yourself, your physical traits and aesthetics, how you manifest, society, and what you expect from the world around you.
FIRE ASCENDANT (Aries Rising, Leo Rising, Sagittarius Rising)
If you are an Aries rising, a Leo rising, or a Sagittarius rising, you come across to others as confident, bold, and stylish. You are known for the way you look or the way you present yourself, and you are usually adorned in bright colors or wearing something that others take a lot of notice of. You are someone who walks into a room, and all eyes are on you, and you love that. You want to be on the move and on the go, and you love to show up in the world exactly as you are today. You see the world with a lot of possibilities and like it's yours to have fun and enjoy yourself in.
EARTH ASCENDANT (Taurus Rising, Virgo Rising, Capricorn Rising)
If you are a Taurus rising, a Virgo rising, or a Capricorn rising, you come across to others as responsible, beautiful, natural, and dependable. You are a hard worker, and you may be known for your career or the work that you do. You are someone who walks into a room and people feel an immediate sense of comfort and like you are someone they can trust. You have strong values and goals, and you are someone who knows what they want. People love to be around your down-to-earth energy, and you make others feel safe and grounded.
AIR ASCENDANT (Gemini Rising, Libra Rising, Aquarius Rising)
If you are a Gemini rising, a Libra rising, or an Aquarius rising, you come across to others as outgoing, friendly, and talkative. You see the world as a place to learn, connect, and be inspired, and you are on a quest for knowledge and understanding. You connect with people from all walks of life, and you tend to have a pretty open-minded and unique friend group. You care a lot about your style and aesthetic and always strive to be authentically you wherever you are. You can talk to people for hours and are often meeting new people and making new friends wherever you go.
WATER ASCENDANT (Cancer Rising, Scorpio Rising, Pisces Rising)
If you are a Cancer rising, a Scorpio rising, or a Pisces rising, you navigate life through the lens of your emotions, and you are deeply connected to the undercurrents of life. You are ruled by your emotions, and this side of you is not something you can keep hidden away easily. You get emotional when you think about society and others at large, and you want to be known for the kind and sincere person you are. When you walk into a room, you feel other people's energy right away and are highly empathic and intuitive.
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Featured image by We Are/Getty Images