Prada, Gucci, Dolce & Gabbana, Nine West a few names in African American Fashion but new study indicates black women may look good, but they are only worth $5.00

Wearing $2095 and you only worth $5

She is fine from head to toe, literally. Her fresh wax-wrap pedicure ($40.00) are showing through her open toe Jimmy Choo shoes ($500.00) matching perfectly with her new black True Religion jeans ($300.00) and shirt ($100.00).   Her hot wax manicure ($35) is flawless as they coordinate precisely with her Macy’s accessories ($70). Her Bobby Brown makeup ($200) is exquisite as it blends in with each highlight from her front lace hair due ($300).   It would almost be disrespectful to leave off her Coach purse ($400) and her Christian Dior sunglasses ($150).

I mean from head to toe she is drop dead flattering. The total investment in her look is $2,095.00. But hold on just one second. My momma told me that everything that glitters ain’t gold. This woman looks great, but her total net worth is:

  • If she is 18 to 35, $100.00
  • If she is 36 to 46, $5.00

Now, I know what you are thinking, “Huh? How can that be?” It is because this woman is an exaggerated example of the average black woman.

The black woman has overcome almost every obstacle without breaking a sweat.  She has nursed the master’s children at her breast while her children were taken.  She has conquered the feats of every profession.  The black woman can be named as lawyers, professors, doctors, judges, politicians, senators, Secretary of State and even the First Lady of America. While she has done wonders in the areas of professionalism, there is still room for improvement in wealth development.  When compared to women of different ethnicities, black women are at the bottom of the totem pole.

According to Researchers at the Insight Center for Community Economic Development, based in Oakland, California single white women in their prime working years (ages 36 to 49) have a median wealth of $42,600, while the median wealth for single black women is only $5.   For all working-age black women ages 18 to 64, their median household wealth is only $100. Hispanic women in that age group have a median wealth of $120. Married* white women have a median wealth of $167,500. Married* black women have a median net worth of $31,500. No matter how you look at it, black women must do better.

Wait! What about the brothas?

Now that doesn’t let the brothas off the hook. Over 70% of all children born in the black community are born to single women. Single women are 60% more likely to live in poverty and combine that with being a black female and their chances of poverty increase by 20%. So even though the black woman has been holding down the black family despite the black man not being present; she must do better as far as building wealth.

What is your net worth?

Black women today are making more than they have ever made in the history of Black America. However, wealth is not measured in how much money you make; it is measured by how much your worth.   Wealth, or net worth, measures the total of one’s assets — cash in the bank, stocks, bonds, and real estate; minus debts — home mortgages, auto loans, credit cards and student loans. Short and simple, take everything you own in value (what it would sell for today) add them together then subtract all of your debts. The difference is your net worth.

Take everything you own in value, add them together then subtract all of your debts. The difference is your net worth. Click To Tweet

FREE TOOL

net worth calc

Calculate Your Net Worth

Monitor Your Money

Measure Your Cash Flow

So You Can Start Your Path To... 

Financial Freedom

I commend you black woman in making more money. Now I challenge you in taking the money you’re making and start retirement accounts, purchase houses, put up the credit cards and pay them off, acquire an emergency fund, teach our children wealth development and let them see you as an example.

There are four steps to increase your net worth.

  1. Stop spending now-throwing your money into depreciating products are working against you. You must stop buying items that aren’t worth anything. You already have enough clothes, shoes, purses, accessories, televisions, electronics devices, and stuff.  You can also do your own hair, paint your own nails, pack a lunch, say no to the sales and clearance racks, delay the vacation, put off the holidays, and do whatever it takes to stop spending.  Lower your spending, and you will have more money.  More money is what I call cash-flow.  Cash flow is king.
  2. You must get rid of debt– Since net worth is calculated by subtracting your liabilities from your assets, it’s only natural to reduce the amount of debt. This should be an easy number to figure out as it’s simply how much debt you owe each month and in what forms, such as your mortgage, credit card debt, student loans, and loan payments.

Are there liabilities that you can eliminate or reduce? Reducing your debt is a big step in helping your net worth number increase!

  1. Build assets at any cost– Assets are a must to increase your net worth. Assets are anything that increases in value.
  • You may not know exactly how much all of your assets are worth, or how that value is going to change, but you can get a round-about figure. Try not to leave any assets out. Remember, here are your main asset classes:
  • Real estate/property: the more equity you have in your home, the greater your net worth.
  • Investments: stocks, bonds, mutual funds and tax-deferred retirement plans. Just remember to add the taxes on these assets to your liabilities.
  • Collectibles: art and antiques—the market for these items will fluctuate, make sure to have each of these items appraised.

Please notice I did not say your clothes, electronic devices, televisions, etc.

  1. Find Passive Income– Passive income is money or assets that make you money. Put your money to work. Currently, you are working for money. However, those who generate wealth have their money work for them. You can do this through real estate rents, business income, licensing intellectual property, etc.
Increase your net worth: Stop spending now, Get rid of debt, Build assets, Find passive income. Click To Tweet

To generate wealth thereby building your net worth you must change your mindset in how you look at money.

FREE TOOL

net worth calc

Calculate Your Net Worth

Monitor Your Money

Measure Your Cash Flow

So You Can Start Your Path To... 

Financial Freedom