Black people aren’t investing our money! With less disposable income and generations of discrimination, we’ve been taught to prioritize less risky financial strategies.
Our distrust in investing could also be linked to persistent myths – like “investing is for white folks.” The impact of these barriers is more dramatic than you think!
Investing in stocks is a HUGE wealth-building tool, and generations of white people have gotten rich doing so. Black people make up less than TWO PERCENT of stock ownership! So how can we overcome these barriers?
You don’t necessarily need expertise to invest, and you don’t have to start with big companies. Finding a financial advisor that looks like you can be a big help – but if you can’t afford one, where should you start?
Start with cost-effective and lower risk options, like index funds. They combine shares of leading companies into low-maintenance portfolios. This provides an easy introduction to profit making and stock market behaviors. But will index funds make you rich?
Probably not. But it can get you started!
Unlike many white people, conversations about investing in stocks were scarce for many of us. We have to start somewhere, though – and the key to financial independence and generational wealth is to learn all we can!