African-Americans play a major role in personal finance. Not only do we make up $1.1 trillion in buying power, we have some major financial experts guiding us on how to use this $1.1 trillion more effectively. Check out these 4 killer personal finance tips from the leading African-American money experts.
1. Admit that you do not understand your finances. – Mellody Hobson
“If I didn’t know how to do something, I’d ask to learn. Most people don’t want to admit they don’t know something. I do, all the time,” Hobson. Simply put, you don’t know what you don’t know. How can you manage to improve your finances, if you never admit that you don’t understand them. It’s okay. According to the National Foundation for Credit Counseling, approximately 41% of Americans admit that they would give themselves a grade of a C or worse on their personal finance knowledge.
2. Personal finance is less about what you actually know and more about how much of what you implement in your daily life. – Patrice Washington
Are you sick of hearing that practice makes perfect? Yes I am too, but unfortunately it is true. Like everything else, in order to get better financially, you must practice better financial habits. Patrice emphasizes that there is NO in between with finances, either you are practicing wealthy habits or un-wealthy habits.
3. Be strategic with your savings – Sharon Epperson
“Save as much money as you can in a Roth IRA . . . ,” Epperson. She notes that a Roth IRA is easily accessible and it does not result in fees as traditional retirement accounts. Additionally, with a Roth IRA you can withdraw your money after age 59 1/2, tax free.
4. Get an Accountability Partner – Tiffany “The Budgetnista” Aliche
“Work towards specific financial goals with an accountability partner.” One of the ways Tiffany utilized this method was by creating the “Live Richer Challenge,” designed to help Women to collectively achieve their savings goals in 22 days.
There you have it, 4 super simple, killer personal finance tips!
MissCFO Action Step: Use your favorite tip and implement it now!