Category Archives: wealth

Census 2020: Will Black Lives Count?

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The year 2020 will go down in history books, and future generations will be reading about the year the earth stood still.  While our lives have definitely slowed down due to COVID-19, the harsh reality is this is a critical year.  In addition to a historic election cycle, this is also the year we complete the Census to determine how we will deploy our Democracy for the next decade. 

The US Constitution requires a population count every 10 years; it is called the Census.  The purpose of the Census is to help ensure our government represents the people.  Many of you may debate me on this, but this is the objective.  Census data is used to allocate seats and draw District lines for the US House of Representatives, State Legislatures, and local boards.  If you’ve ever complained about the resources in your community, it’s important to understand the significance of the Census.  In fact, federal funds are distributed each year based on this data.  From infrastructure (highways), medical assistance, school lunch programs, Head Start, and much more, the Census drives how those funds are allocated across the country.

I know there are many distractions, and some are essential and worthwhile, but we have a call to action.  We must ensure that our families are appropriately represented in Census data.  Historically, blacks have been undercounted.  According to a White Paper published by the Center on Poverty and Inequality at Georgetown Law, in the 2010 Census, blacks were undercounted by more than 800,000 with approximately 7% of black children being excluded; this is roughly twice the rate for non-Hispanic white children.

There are unfortunate realities that increase the risk of blacks being undercounted, but we must do our part by proactively completing the Census this year.  We must educate ourselves and exercise our voice.  So many have fought and gave up their lives for us to have a voice in this country, our country.  Let’s stay engaged during this pivotal time to ensure that positive change occurs for our communities. 

Due to the pandemic, key Census dates have been revised.  The self-response phase has been extended until October 31, 2020.  It’s now easier than ever to respond.  You can complete your Census information online, by phone, or by mailing in your self-response form.  Don’t overlook this simple act.  Your silence will have lasting impacts.  For more information on Census 2020, please visit 2020Census.gov or view the short video captured below.

We know that Black Lives Matter!  One way to ensure that others know this too is by exercising our right to be counted.

Financial Tips Presented At The National Black Book Festival

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At the beginning of June, I attended the National Black Book Festival in Houston, TX.  While there, I facilitated a seminar on the Rags to Riches Financial Model.  The presentation highlighted the essential components needed to lay a foundation for financial success.  Included below are some of the helpful tips that were shared with seminar participants:

  • Money matters are matters of the heart.  If you have a personal mission for your life, it becomes easier to be disciplined in your finances.  In order to succeed financially, you must have a mission for your money
  • To increase the amount of surplus (income-expenses) you have on a monthly basis, consider the following:
    • Combine your insurance policies in order to receive the multiple policy discount
    • Interest rates are at historic lows.  Explore opportunities to refinance your home and / or vehicle.  If you are struggling to pay your mortgage, consider investigating several of the governmental programs that have been established to help homeowners stay in their homes.  My post, Don’t Walk Away From Your Investment, outlines a few of these programs
    • If you have a cell phone, consider eliminating your home phone or opt for basic service
    • Measure your financial health based on your net worth and not your annual salary.  Your net worth is the difference between your assets (what you own) and your liabilities (what you owe.)  You can evaluate your net worth by using the following formula:

Net Worth = Age X Pre-Tax Income (Gross) / 10

  • You can’t fix what you’re not aware of.  That being said, you should obtain your credit report from the three major credit bureaus on an annual basis by visiting www.annualcreditreport.com.  This is a free service
  • Know your credit score.  For tips on improving your credit score, please review my post, Three Ways to Increase Your Credit Score
    • A low credit score will increase your liabilities and expenses and decrease your surplus and net worth
  • Set sound financial goals.  The following four steps are key ingredients to goal setting:
    • Be Precise – Include dates, times, and amounts so you can measure achievement
    • Be Realistic – It’s important to set goals you can achieve
    • Set Priorities – We often have several goals; give each a priority
    • Write Down Your Goals – Documenting your goals activates them and increases your chances of success

I hope you find the tips in this post helpful.  Establishing a solid financial future requires a plan, time, and money, but it’s never too late to get started.  To review the seminar presentation in its entirety, please click here:  NBBF Rags to Riches Seminar Presentation

Three Ways to Increase Your Credit Score

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Credit is a significant factor in building wealth.  The truth of the matter is people without credit or with poor credit pay more for basic services (e.g., home mortgages, auto loans and insurance.)  Additionally, it’s important to know that no credit is the equivalent of poor credit.  That being said, whether you use it or not, if you want to build wealth, you need credit.  To ensure we’re on the same page, I’d like to introduce three key terms:  credit, credit reports, and credit scores.

Credit is the ability to buy now with a promise to pay later.  According to the Federal Trade Commission (FTC), if you’ve ever applied for a loan, credit card, insurance, or job, you have a credit report.  Your credit report is similar to a report card; it conveys a story to creditors.  It shows whether you’ve been a conscientious consumer, if you honor your credit agreements, and whether or not you’re carrying too much debt.  In today’s economy, credit is more important now than ever before.  Not only will it prevent you from being able to purchase or rent the home you desire, it can also prevent you from obtaining the job you want.  If you’ve never reviewed your credit report, there’s no time like the present.  Each year, consumers qualify for a free credit report from the three major credit bureaus.  To request your free credit reports, please visit www.annualcreditreport.com .

If you have a credit report, you have a credit score.  In an effort to ensure objectivity, many creditors use credit scores to assess an applicant’s credit worthiness.  A credit score is a numeric value that ranks an individual according to their credit history at a given point in time.  Credit scores typically range from 400 to 850 – the higher, the better.  Although obtaining your credit score from the three credit bureaus is not free, it’s worth the investment.  You can obtain your credit score from Experian, one of the three major credit bureaus, by visiting www.freecreditscore.com .  Because the information in your credit report may vary, you should obtain your credit score from all three major credit bureaus.

If you’re credit challenged, the following steps will help you improve your credit score:

  1.  Pay Your Bills on Time.  Creditors do not report your account as late to the credit bureaus until your account is 31 days past due.  Because we now have the ability to pay our bills online, many creditors have eliminated the grace period for late fees.  For example, if your credit card bill is due on June 1, most creditors will assess a late fee if your payment does not post to your account by that day.  Although you may incur a late fee, your account will not be reported as late to the credit bureau until it’s 31 days past due.
  2. Keep credit card balances below 50% of your approved credit limit.  Your credit score factors in how much credit you use.  In essence, just because you have it doesn’t mean you have to use it.  If you can’t pay off your balance at the end of the month, keep your balances low.
  3. Pay outstanding judgments.  If you have debts that are not in good standing, it’s important to make arrangements and pay them.  As you develop a plan to pay outstanding debts, you should focus on the most recently reported first.  You should also take an opportunity to request settlements.  Most creditors will accept settlements on bad debts.  As you work with a creditor on a potential settlement, try to settle the account for 50-60% of the outstanding balance, and make sure you obtain the terms of the settlement agreement in writing and honor them.

Restoring credit takes time, but it’s worth it.  Proverbs 22:1 states, “A good name is more desirable than great riches; to be esteemed is better than silver and gold.”  If you desire to build wealth for future generations, it begins with striving to maintain your credit worthiness.  For more information on how to restore your credit, please consider the book, Rags to Riches.

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