the movie theater, the mall and other places that add little-to-no longterm value to your life. In fact, $50,000 is on the low end, if you were to consider what would happen if we were to allocate all wasteful spending to stock market investing instead.
I know people who claim to be broke and poor but have spent tens of thousands of dollars on things that are now in the garbage. Even if you waste just $20 per day on nonsense, that would have turned into about $80,000 or more if invested consistently in the stock market, and that’s actually a very conservative estimate (according to standard equations, the number is actually well over $100,000, but I am using the lower estimate for those who somehow think black people are incapable of building wealth).
The point in all of this is that, through the 20+ years I’ve been teaching Finance to college students, I am astonished by how much money can be made through consistent investment of literally the spare change in your pocket.
Albert Einstein once said that the greatest force in the universe is compound interest. He was absolutely correct. By harnessing the power of compound interest, African Americans can take the lead in building wealth. All that must occur is for us to have a new movement that focuses on business creation, investing and wealth-building to ensure that the money we make is used as a seed for a better life, rather than fuel for someone else to get rich from our resources.
The choice is up to us.
Dr Boyce Watkins is a Finance PhD and founder of TheBlackBusinessSchool.com and The Black Wealth Bootcamp. He has taught Finance at The University of Kentucky, Indiana University, The Ohio State University, Syracuse University and other institutions. To learn more, please visit BlackFinancialLiteracy.com.