"These disparities can be explained only by the multigenerational legacy of racial discrimination in mortgage lending, employment, and access to capital for enterprise development." – Chuck Collins
"This pisses me off, so I am going to teach you (my people) everything I can to see the changes in Wealth Inequality, even if it consumes my hard earned time." -Section8Investor
Today, I am going to help you understand the difference between Income Vs. Net Worth. Many people in the Black Community seem to not have a functional understanding of this as we spend ferociously without building our nest eggs (Net Worth). It's even more crazy that we are on the bottom of the list underneath Hispanics in most cases. I love hispanics, but they aren't even from our country and receive more (better) opportunities than us (blacks). We have to understand this racial gap is a big issue. If not you, then please teach your kids, so the next following generations could build upon the knowledge and wealth.
Your income is your yearly income you make from your job. Unfortunately, you could lose that job and everything you own if you don't have a healthy savings (talking from life experience). I prefer 10 months of your living expenses saved for extra comfort. You have to understand if you rely only on one income you are bound to fail in this economy. You must use that "powerful wealth building tool" as a way out of your current situation. You don't have to be broke forever. You too can reach a high Net – Worth.
"If you don't learn how to make money while you are sleep (Net-Worth), you will work for money until the day you die (Income)."
Net Worth is how much you own after your debt is taking away. So, if you have 0 in Net Worth built up and a debt balance of 54,000 congrats because you are in the Negatives (Red), and probably don't have any good judgements with money. Pause! If I sad that with ease about you what do you think majority of the white race say about us when it comes to money management! They are laughing they're assess off! This has too change for the betterment of our communities.
Moving forward, net Worth is the amount of money you have in your possession, in plus everything you own that has significant value. This could range from Real Estate, Investments, Savings, Cars, and Business Corporations that you own. As your net Worth builds it shows you are doing great financially. You have to fully understand your income is not your net worth. It doesn't matter how much you make in a year, if you don't build your net worth and put your income to work you will be poor.
Question: Are you building your Net Worth, or are you relying on one Income? Black Community, I need a answer Pronto! Our communities and generations depend on us to figure it out.