Since the founding of America, it has been increasingly difficult to gain capital and obtain generational wealth as an African American citizen. Crazy, right? If it’s written in the Constitution that borderline anyone who works really hard can go from nothing to everything, you and your Black counterparts 100 percent have the right to change the narrative and sustain money within black heritage lines. Yet, only one-third of Black Americans invest in the stock market, and around 54 percent don’t have enough money to sustainably live throughout retirement. True Star recently took part in the first Maconomics Wealth Summit to learn more about how to take advantage of the market for personal gain and flip the tables for wealth within the Black community.
Maconomics is a company that teaches financial literacy. Founded by Ross Mac, the main goal of this organization is to get the Black community right by educating them on creating generational wealth. On July 9th, panelists Jory Luster, Les Coney, Ryan Smith, Rashauna Scott, Khari Blasingame, Dilla Bonsu, Russell Richey, Rob Rumley, Kris Patterson, Jeremiah Williams, Ian Brock, Zack Boog, and host Portia King covered various topics under economics, from house investments and the stock market, to real estate and investment banking. All these skills are guaranteed to come into clutch in the future, so learning early is the best way to start. Here’s a quick summary of what I learned.
Before you decide to buy into the market, the main thing you need to ask yourself is “How is my relationship with money?” Do you have credit card debt, student loans that aren’t paid off, a low credit score? Do you save what’s left over after you spend, or spend what’s left over after you save? In order to get yourself straight, Mac recommends the 50-30-20 method. Fifty percent of your money should go to basic living expenses. Thirty percent goes to your wants, getting your hair done, buying that bag you’ve always wanted, etc. That 20 will always go into your savings account. If you start budgeting early on, that habit will build, resulting in enough money saved up for the future.
When learning about how we view money along with our relationship with it, 18-year-old entrepreneur Ian Brock, co-founder of Dream Hustle Code, stated that the younger generation tends to have a different view on creating streams of revenue. “In our generation, I feel like sometimes we get so caught up on, ‘We gotta make this money,’ because that’s all we need. But in reality, it’s just a tool. It’s like a paintbrush a painter uses. That’s all it is at the end of the day.” Brock really did an amazing job on highlighting the importance of not investing to make money, but investing to provide the things necessary to get closer towards whatever goal one might have. This ideology stands parallel with many budgeting methods, ultimately connecting both messages together hand-in-hand.
Once most of your debt is paid off, entering the market will be much easier when you are in a secure financial state. The first rule I’d abide by is, “When the market is going up and down, you just have to make up your mind to get into the market.” When the GDP (gross domestic product) for a company is low, they will most likely lower the amount usually charged to buy a small stock of the company. Buy when the market is low, decide what or who you want to invest in based on who you believe will do well. Taking risks are necessary, and knowing when to sell those stocks is important to gain profit.
Getting into the stock market while you are young and educating yourself on economic matters is very important if we as a community strive to achieve the wealth that we deserve. To learn more about growing your wealth, follow @iamrossmac on Instagram and visit his website, Maconomics.com.
By Jada Strong, Sophomore, Whitney Young Magnet
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