OPINION – For the Black woman, investing can bring anxiety. Today, Black women miss the opportunity to own their financial destiny, whether that be investing for retirement, or leaving assets for their children or grandchildren.
As a Black woman who began investing late in life, I still have the “can’t touch that” kind of attitude. But I know if I don’t tackle some of my anxieties, I will end in the 80 percent of women who retire only to live in poverty.
Let me address some rules of the game that will help make sound financial decisions.
Here is a common one: you meet with a financial adviser, he or she prepares a Financial Needs Analysis, (FNA). The FNA states the amount you need to save pre-month in order to retire comfortably. You look at the amount, walk out the door without ever looking back (me too).
Let’s first step back from the FNA and begin by tracking your spending. I always start my clients with a Financial Spending Plan (FSP). Seventy-five percent of women don’t know what they spend their money on — oh yes you have an idea, but down to the penny. The FSP guides you from the first step of tracking your financial to developing a plan that is comfortable for you and your family. (2011, Anita R. Johnson-Big Girls Don’t Cry-Taking the Emotions out of Finances).
Stop taking care of your family members. OOPS I have done it now. I remember speaking with my mother, and yes I love my mother, but I really had to let her know some things. Recently, my mother became ill, which caused me to travel to Louisiana for an extended period of time. During this time I was not working, but I still had my household to maintain. I explained to my mom it was time for me to go back home. She politely told me, it was my duty to stop my life to take care of her, well I respectfully told her no. There are countless other examples, giving money to our grown children when they don’t and will not work. These acts of kindness leave our investment lacking, angry with ourselves and our love ones.
Not purchasing assets. Assets are defined as things that pay you money. The Insight Center for the Community Economic Development reported the wealth gap. ICCE found that nearly half of all single Black women and Hispanic women have a zero or negative wealth — their debt exceeds their assets. Single Black women media wealth is $100; for single Hispanic women it is $120, but for single White women it is $41,000. (http://www.democracynow.org/2010/3/12). Wealth is not related to your income, it is related to what assets you have, your home, your investments-stocks, bonds, retirement and other real estate investments. Not clothes, cars, shoes or other non-note wealthy items.
My mission, purpose and goal is to equip you with wealth building skills so that you can leave a legacy and not debt for your children.
BY Anita R. Johnson
Speaker, Radio/TV Host
Money Wisdom for Women
www.ThePraiseHouse.com Tuesday, Thursday 1:00 PT
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