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It’s true, money doesn’t discriminate based on race, color, religion, sex, sexual orientation, gender identity or national origin. If you have a dollar it is a dollar regardless of who or what you are in the world.
Even though money doesn’t discriminate it feels like it does when we read about how large the wealth gap is between minority and white households & men and women. We will all face challenges on our journey to financial freedom and these challenges are no reason for us to not own the decision to make good on our personal finances. We need to use our money to build wealth.
Anyone can make money and manage it to become wealthy. No two people take the same path through life therefore everyone will have a unique financial journey. We must become financially literate and adopt a wealth inspired mentality along the way.
A WHOLE NEW WORLD
I was 26 and owed $104,616 in credit cards, student loan and car loan debt when I learned that it was possible for me to go from broke to wealthy. My co-worker recommended Dave Ramsey’s “Total Money Makeover” and the book changed the way I handled money and viewed wealth. Do you remember when our teachers said “Knowledge is Power”, they weren’t lying. I applied the things I learned to become debt free in 5.5 years. I the next 4.5 years I built an emergency fund, started investing in retirement and bought a house. Talk about game changer. My goal is to use the an and all knowledge to close the wealth gap for me and my family.
WHAT IS THE WEALTH GAP?
If wealth is defined as total assets minus liabilities, the wealth gap is the difference between the wealth of two different groups of people. Let’s take a look at the racial wealth gap and the gender wealth gap.
RACIAL WEALTH GAP
In A new study by Prosperity Now and the Institute for Policy Studies it was reported that Blacks and Latinos have a median household wealth of less than $15,00 while White households have $134,000. The wealth gap is $119,000 ($134000-$15000).
GENDER WEALTH GAP
In the Huffingtonpost.com article “We Need To Talk About The Gender Wealth Gap” by Anna Mahathy we find out that the single woman, regardless of race, has a median wealth that is lower than her male counterpart.
WHAT CAN I DO, AS AN INDIVIDUAL, TO CLOSE THE WEALTH GAP FOR MYSELF and MY FAMILY?
- The first thing you can do is seek financial education. This education does not need to come from a classroom, it can be found at the library, online, financial seminars in your local area, asking questions at the bank, listening for personal finance experts on podcast, YouTube or IHeartRadio. Sharing is caring, so you should share your knowledge and resources with the people around you. This is the only sure-fire way to start closing the gap for you and your family.
- The second thing is to apply the things you learn.
- The third thing is to adopt a wealthy mentality. You can do this by staying positive, believe wealth is possible, look for opportunities that will help you achieve your goals.
WHERE DO YOU RECOMMEND I START?
- Read Total Money Makeover: A Proven Plan for Financial Fitness by Dave Ramsey
- Customize the 7 baby steps to fit your unique financial situation
- Start using a zero based budget to tell your money what to do
I warn you that there will be some TEMPORARY lifestyle changes at the beginning. Once you do these three things you will start to see changes in your mentality and your finances.
Will you take steps to close the wealth gap for yourself and family? Where will you start?