Current Net Worth Of Black Americans

Cost of living is rising as current inflation levels has every sector becoming more and more expensive by the day. Get a glimpse at the status of the current net worth of Black Americans.

OK, LET'S REVIEW:

• Net worth has to do with what the assets that you own vs. any liabilities that you have. Your net worth is directly connected to your ability to accumulate and build wealth as the goal is to continue to decrease liabilities as much as possible and increase your assets.

• Essentially, when you spend your hard earned money, the goal is to spend MORE on assets that will help ADD to your net worth and spend LESS on liabilities that will DECREASE your net worth.

HERE'S WHY THAT MATTERS....

2021 INCREASE IN SPENDING POWER

On February 1st, 2022, CNBC's Frank Holland reported that as a group, the spending power of Black Americans reached a record of 1.6 Trillion dollars in 2021, exceeding the full US economy. Even with that astonishing number, since 2000, Black spending power increased 171% but still lags other races with Latino's spending power increasing 288% and Asian's spending power increasing 383%.

“Black American spending power reached a record of 1.6 Trillion dollars in 2021"

DECREASE IN NET WORTH

• With the increasing percentage in spending across the board, each group has also seen an increase in net worth...except for Black Americans.

• Unfortunately, Black Americans net worth is down 14%, currently trailing every other ethnic group. This directly impacts the ability to build and accumulate wealth.

This means that as a community, we are spending LESS on wealth building assets and MORE on liabilities that ultimately decrease out net worth. Personally I believe that there are PLENTY of institutional blockers and reasons that CONTRIBUTE to the overall decline in black wealth building. Historically, there have been numerous road blocks to have hindered the attempts to build wealth as a community (insert Black Wallstreet, Tulsa Race Massacre 1921)

BOTTOM LINE

• Despite institutional blockages, as a member of the Black community, I have seen the increase in interest within the black community to get involved with investing. However, with this interest, I also have observed a gap in the understanding and education within investing which ultimately leads to continuously losing money when investing.

• Historically, there hadn't always been access to investing platforms, mainly because of the lack of capital. However, with the changes with brokers becoming more user friendly and offering educational materials, there are NOW sufficient resources to learn how to increase wealth by investing. We just have to seek and connect with resources that we can individually understand.

INCREASING YOUR PERSONAL NET WORTH

Of course no one person can single handedly raise the net worth percentage in the black community. However, you can individually start to tackle your own by following these suggestive steps to increase our personal net worth:

• PAY BILLS ON TIME

• IMPLEMENT A BUDGET

• DECREASE DEBT

• GET INTO INVESTING!

The reality is that investing is a major key to building wealth and increasing your individual net worth. I do understand that the investment space used to be confusing and there was limited access. But we are now in a space where there are multiple ways to get involved with investing and the resources, including this blog, that are now available to teach you about investing.

The great thing about the internet is that these resources are now right at your finger tips, you just have to REACH OUT AND GRAB THEM!

HAPPY INVESTING!!