If you’ve ever wondered how rich black people stay rich, it could be that they live on a budget. You may not know this, but most millionaires are pretty tight with their cash, according to Jim Trippon, author of How Millionaires Stay Rich Forever. To find out five reasons wealthy black people live on a budget, we asked attorney, certified public account and owner of Nash Management Group, Shannon King Nash, Esq., to fill us in on how the rich stay rich.
What is it that wealthy African Americans know that most people do not when it comes to money?
They understand what personal wealth means. Most rich black people understand that they will never build true personal wealth [net worth] by just working a 9 to 5. Keeping in mind that Assets – Debts = Net Worth. This does not include the ‘cars and the clothes,’ but true assets will make you successful. True assets are items such as stocks, bonds, businesses and real estate.
How do they feel about saving?
They save, save, save. I know it’s something that financial people tell you over and over again, but in these times you need at least six months of savings in case of emergencies. Rich black people understand that in order to be ‘… laughing straight to the bank with this’ [lyrics from 50 Cent’s single of the same name] they have to save as much as possible. This can be hard for those already living check to check. However, it’s best to put aside even small amounts like five dollars every week to get in the habit of saving.
How do they plan a budget?
Most successful rich black people use budgets of some sort. Whether they rely on budgets prepared by professionals or create a budget themselves, they have a decent handle on what’s covered in their budget and they don’t try to live beyond it.
Is living on a budget realistic?
Always be real with yourself and your finances. Most rich black people are realistic about their weaknesses. If your weakness is Christian Louboutin shoes, then be realistic and include it in the budget. Taking 10 percent off the top can help you keep it real with your goals without the guilt. It is OK to re-evaluate your budget and make changes. Keep in mind this is not an overnight fix, but a long-term solution.
–marian anderson
Shannon King Nash is also author of “For the Love of Money: The 411 to Taking Control of Your Taxes and Building Your Net Worth.” (photo courtesy: Kia Whitehead)
Marian Anderson is a travel and lifestyle writer and creator of Haute Travels Blog hautetravels.blogspot.com/
