Category Archives: Spotlight

Self-Made Millionaires: Ms. Mellody Hobson

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Although Black History month is now over, I wanted to take an opportunity to complete my series on African-American Self-Made Millionaires.  For my regular readers, I apologize for my delay in completing the series, but I had a delivery date that I couldn’t miss.  On February 25, my husband and I welcomed a new baby boy into our family.  Things are going well and we are adjusting to having a baby in the house!

As I thought about how I’d like to close this series, I decided to highlight someone that has dedicated their life to helping others pursue their financial goals.  For this reason, this week I’ve chosen to feature Ms. Mellody Hobson.  Mellody Hobson is President of Ariel Investments, a Chicago investment firm which is also one of the largest African-American owned money management and mutual fund companies in the United States.  In addition to serving as Chairwoman of the Board of Trustees for Ariel Mutual Funds, she also serves on the Board of Directors for Starbucks Corporation, Dreamworks Animation, and The Estee Lauder Companies.  I am only ‘scratching the surface’ on Ms. Hobson’s accomplishments, but based on the information above, I’m sure you’ll agree that she has quite an impressive resume.

As I reviewed Ariel Investment’s website, along with other informative news articles about Ms. Hobson, I became intrigued by her story.  While her biography is impressive, I’ve decided to highlight some of Ms. Hobson’s financial advice.  An article on B. Couleur features advice that Ms. Hobson gave to parents during a 2008 interview.  Although the interview occurred several years ago, the advice is still relevant.  If you’re a parent, consider the following:

  • Give children stock instead of toys or money for Christmas.  This tip was also highlighted in our December post, Financial Gift Ideas for Teens
  • Start a ‘family 401K’ by matching every dollar your child saves with a dollar of your own
  • Divide allowances into short term expenses, long term expenses and money for charity.  This concept is similar to the Money Savvy Piggy Bank  highlighted in the post,  Financial Gift Ideas for Young Children

In addition to the advice given above, during a segment on Good Morning America, Ms. Hobson highlighted Three Things You Should Never Carry in Your Wallet.  Her comments included the following:

  • Do not store receipts in your wallet.  She mentioned that receipts not only clutter your wallet, but they can also contain key information that identity thieves can use against you.  If you struggle in this area, consider carrying a smaller wallet; it will force you to only carry the essentials
  • Do not carry your social security card in your wallet.  I have to admit that I was guilty of not adhering to this piece of advice.  However, it makes a lot of sense.  An identity thief has ‘hit the jackpot’ if they are able to obtain this small piece of paper.  She also mentions that you should never carry a list of pins and passwords in your wallet
  • Do not carry expired credit cards or membership cards in your wallet.  She stresses that just because they’re expired doesn’t mean that thieves won’t try to use them.  Additionally, the cards may provide personal information that shouldn’t be in the hands of others

In addition to highlighting those items we should never carry in our wallet, Ms. Hobson mentions that the following items should be in our wallet:

  • You should carry a credit card, but just one.  Carrying additional credit cards may cause you to overextend yourself.  If you have more than one card, don’t close the accounts because this may have a negative impact on your credit rating, but practice restraint by carrying only one
  • Carry some cash for incidentals.  During this segment, Ms. Hobson mentioned studies have shown that people spend 12-18 percent more on purchases when they use credit cards vs. cash

Ms. Hobson has definitely succeeded in spite of the odds.  A recent study performed by Insight Center for Community Economic Development reported that the average African-American woman has a net worth of $5.  Given this statistic it is clear that we have a lot of work to do, but if we take an opportunity to learn from individuals like Ms. Hobson, we can achieve the financial success we desire.  Most people don’t become wealthy overnight; it takes patience and perseverance.  Ariel Investments was founded on this principle and it is still a part of the company’s ‘fabric’ today – hence the firm’s logo, “slow and steady wins the race.”   To learn more about Ms. Hobson or Ariel Investments, please visit http://www.arielinvestments.com.

Self-Made Millionaires: Whitney Houston

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On Saturday, February 11, the world was shocked by the announcement of the untimely death of Whitney Houston.  As I planned this series, I had no intention of featuring entertainers, but due to the number of lives Whitney has impacted over the years, it seemed fitting to include her.  I’m sure that many of us, especially women, have found ourselves in the mirror, shower, or car attempting to ‘belt out’ one of her love ballads.  And, in our mind, our rendition of the song was just as good as hers.  We were fooling ourselves!

While I’m sure that we’ve all taken a trip down ‘memory lane’ and reminisced over our favorite Whitney songs, the intent of this Post is to highlight a few unpopular truths about money and fame.  In last week’s Post, I referenced Dr. Farrah Gray’s belief that as we seek success, we should first focus on being rich from within.  He also believes in the notion that money doesn’t change you; it simply magnifies who you already are.  I believe there’s truth in both statements, but as I thought about Whitney’s life, as well as other entertainers and sports figures, I contemplated the following question:  “What if you don’t know who you are?”

I’m sure that most people have developed their own opinion about what led to Whitney’s demise, but I urge you to be careful in how you judge her life.  What if all of your successes and failures were out in the open for the world to see?  Additionally, take a moment to think back to a time when you were ‘young and dumb.’  I’m sure you can think of at least one ‘skeleton’ that you would not want to share with others.

In our society, we assume that just because someone has a gift or talent, they are mentally prepared and mature enough to deal with the pitfalls that can be a part of stardom.  Additionally, many of us were raised to not disclose personal matters or things that occur in our home life.  The harsh reality is every single one of us has had to deal with some level of family or personal drama.  Although alcoholism and drug addiction are both a form of disease, many people begin to use them as a way of escape.  No one plans to become an addict.  I’m not a psychiatrist, but I wonder if our community was more open to seeking counseling and addressing mental health issues, would we see a decrease in the number of African Americans impacted by alcohol and drug abuse?

In the African American community, we are taught to ‘take our burdens to the Lord and leave them there.’  Growing up in the South, this was actually a song that we sung as we knelt at the altar every Sunday.  What happens when the burdens and pressures of life are so overwhelming that leaving them at the altar no longer works?  When I think about Whitney Houston, Michael Jackson, and others, I’m sure they lived a lonely existence most of the time.  Can you imagine wondering if people are ‘with’ you because of your fame?  What if you never had the ability to be vulnerable or ‘naked’ with someone because you were afraid of what they would think or share with others?  Let me be clear, I am not excusing anyone of their choices or decisions, but I cannot and will not try to compare my existence and ability to mature in a safe and private environment with someone that was catapulted into fame as a young teen.

As I prepare to close, it is my utmost desire to see more African Americans pursuing their dreams and increasing the wealth in our communities, but we must not forget the importance of preparation.  In addition to strengthening our natural talents and gifts, it is essential that we are mentally prepared to face the challenges that come along with the ‘next level.’  I recall someone using the phrase, ‘new levels, new devils,’ and I thought they were simply being negative.  There’s a lot of truth in this phrase and if you choose to ignore the possibility, you just might find yourself blind sighted.  Although Whitney is no longer with us, her life embodied one of my favorite songs, One Moment in Time.  As we celebrate her life and her contribution to the ‘fabric’ of our nation, we can all strive to seek our own moment in time.

Self-Made Millionaires: Dr. Farrah Gray

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As I continue the series on African American Self-Made Millionaires, this week’s Post features Dr.  Farrah Gray.  While there may be many that have not heard of Dr. Gray’s ‘rags to riches’ story, we can all learn from it.  So often we hear about people becoming successful and we say, “Great for them, but nothing like that can ever happen to me.”  If you’ve thought a similar thought or actually spoke it into existence, I urge you to rethink your position and consider the following question, “Why not me?”

During an interview on The Monique Show, Dr. Gray said, “Comfort is the enemy of achievement.”  In my recent Post, Self-Made Millionaires:  Madam C.J. Walker, I mention a similar statement made by Dr. Oz on The Oprah Winfrey Show.  I guess the reality is most people are prompted to change their situation when they can no longer envision staying in their current state.  Based on information found on Dr. Gray’s official website, this pivotal moment occurred for him at the tender age of six.  Due to his mother’s illness, he decided to figure out a way to help his mom, a single mother, pay the bills.  In an effort to help his mom, Dr. Gray collected rocks, painted them, and sold them as paper weights, book ends, and door stops.  While this was not a lucrative business, it taught him that with a bit of creativity and self-determination, he could write his own life story.  This confidence prompted him to begin carrying business cards at the age of seven that read, “21st Century CEO.”

In Dr. Gray’s book, Reallionaire, he mentions that in order to be succesful, we should answer the following questions:

  1. What comes easy to me, but harder to others?
  2. What am I willing to do and not get paid for it?
  3. How can I be of service and how can I give back?

I believe you’ve found your purpose when you can answer these three questions, and the only person that can stop you is yourself.  Another point that Dr. Gray makes in the aforementioned book is that it’s important to focus on ‘being rich from the inside out.’  We all want money and nice things, but what do you plan to do with it once you get it?  Dr. Gray lives by the following principle, “Money doesn’t change you, it magnifies who you are.”

While Dr. Gray has been successful in several business ventures, his most noteworthy achievements align with his desire to give back and help others that have backgrounds similar to his own.  After becoming a millionaire at the age of fourteen, he started New Early Entrepreneur Wonders Student Venture Fund (NE2W).  According to Dr. Gray’s bio, NE2W was a flagship organization on Wall Street that enlisted, educated, and engaged at-risk youth by creating and developing legal ways for them to acquire additional income.

In many ways, there are a lot of similarities in Dr. Gray’s and Madam Walker’s story.  Although they are generations apart, both were self-starters, believed in marketing themselves and their products, and had a desire to give back.  As I continue this series during the month of February, I believe that these character traits will be relevant to the other self-made millionaires as well.  As I prepare to close this week’s post, it would be remiss of me if I did not mention that Dr. Gray is not even 30 years old yet!  If you have young children – especially African American males, I would highly recommend that you make his books required family reading.  To learn more about Dr. Gray or order his books, please visit http://www.drfarrahgray.com.

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