5 Black Financial Educators Who Are Empowering Us to Take Control of Our Finances
Teaching us how to budget, pay off debt, and more.
Photo: Courtesy of Tonya Rapley
Welcome to 5 for 5, where we spotlight 5 women in 5 minutes or less.
It’s no secret that Black women are not paid fairly. On average, Black women are paid 37% less than white men and 20% less than white women for doing the same work, according to LeanIn.org. But despite the stats, Black women *can* build wealth. Ahead are five financial educators who are advocating for change, empowering women to take control of their finances, and pushing these stats in the right direction.
1. Dasha Kennedy
Dasha Kennedy, a.k.a. @thebrokeblackgirl, doesn’t hold back when it comes to sharing tips for assessing personal debt, reaching a big financial goal, and implementing a financial wellness self-care routine.
2. Tonya Rapley
The “Millennial Money Expert” and founder of My Fab Finance, Tonya Rapley, is on a mission to help 100,000 people make at least one money decision they’re proud of, whether it’s buying a home or saving money on a trip.
3. Tiffany Aliche
Known as @thebudgetnista on Instagram, Tiffany Aliche breaks down big goals like building wealth, paying off a mortgage, and buying a home while paying off student debt into achievable (dare we say simple) steps.
4. Marsha Barnes
The brains behind @thefinancebar, Marsha Barnes is a must-follow for friendly reminders to engage with your finances, adjust your budgeting plan, and start an emergency fund, as well as tips on how to follow through.
5. Jamila Souffrant
The founder of @journeytolaunch, Jamila Souffrant, is all about helping people grow their savings, get out of debt, and gain financial freedom and independence. (Psst… her podcast, Journey to Launch, is a must-listen!)
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5 Things To Do Before You Start Investing
Yield your best benefit.
Photo by Karolina Grabowska from Pexels
Investing can be intimidating. But if you’re looking to build your wealth, buy a house or set up a retirement fund, investing is not only one of the best money moves that you can make –– it’s a must. For most people, understanding the basics and choosing the right investment strategy is enough to get started. But the most important question to ask when it comes to planning your financial future is whether investing is right for you, given your current financial situation.
So, to have a candid conversation about making strides toward the financial future you want for yourself, we tapped Lauren Anastasio, CFP® (Certified Financial Planner) at SoFi, during our recent Money Moves Digital Summit to share some tips on building wealth through investing, including what you need to know before you start, and how to really know if investing is right for you.
She identified five financial goals to accomplish in chronological order, before you begin investing in order to build the best possible financial foundation. ICYMI, we’re sharing them below, along with Lauren’s tips to yield your best benefit.
Establish a Safety Net
The first thing you want to do before you consider investing, is establish a safety net. Think about this as a cash savings equivalent to approximately one month's worth of your essential expenses. If you don't have at least enough cash to cover all of your living expenses for one month, then saving is your very first priority––that's the thing you should be doing, before anything else.
Seek Employer Match
Step number two is to obtain any employer match you might be eligible for. If you're not strictly self employed or you do have access to an employer sponsored plan, you will want to make sure that you're maximizing any match that you might be eligible for––you never want to leave free money on the table!
Protect Your Income
Third, protect your income. This means pursuing an appropriate amount of disability or life insurance, depending on your circumstances.
Attack Bad Debt
Next, you want to eliminate any bad debt, It’s important to make the distinction between between good debt and bad debt. Bad debt includes things like credit cards or personal loans, essentially anything charging 7% interest or higher. You will want to eliminate these in their entirety before moving on to investing. The reason is, there's an opportunity cost if you're investing and you can expect realistic average annualized returns of seven or 8% –but if your credit card is charging you 20% that's compounding daily, your money is going to be far more valuable going towards paying off that high interest rate debt than it will be going into the market. This is one step you absolutely do not want to skip.
Build an Emergency Fund
Step five includes establishing a fully funded emergency fund. This is when you take that safety net and build it up to a balance that's closer to between three to six months worth of your essential expenses. This is vitally important, because if you do have an emergency that comes up, including some type of loss of income, you don't want to have to take money out of the market and possibly trigger a taxable event or have to dip into that money when the market is down. You will want to make sure you always have cash on hand.
Once you’ve accomplished steps one through five, you’re likely ready to start investing! To learn more about investing and how to align your approach to your goals, visit SoFi.com/Invest.
ABOUT SOFI:
SoFi is a different kind of finance company whose goal is to help people get their money right. Whether you're looking to save, spend, earn, borrow or invest, SoFi is a one-stop shop for your finances, designed to work better together. Our products are built around our members—so that they have the tools they need to take control of their financial futures. Learn more by visiting SoFi.com.
DISCLAIMERS:
Advisory services are offered through SoFi Wealth, LLC an SEC-Registered Investment Adviser.
Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.
How to Go on Vacation with $1,000 or Less
We all need some PTO.
By: Tia Johnson
I have learned over the years that you don’t have to spend large sums of money to go on vacation and have a lovely time. Whenever I see a person win a prize vacation for a total value of $5,000, I would become confused. Several questions come to mind: Why does that vacation have to cost $5,000? Does it include food and drinks? What about an excursion or a tour? I believe that’s one of the main reasons why some people think they can’t go on a nice vacation unless they save their money for at least year or make considerable sacrifices to afford a vacation. Let’s look at seven creative ways you can go on a vacation for a $1,000 or less.
Think of a Cost-Effective Plan
Having a game plan for how you will make the most of your vacation will save you from rushing to travel on holiday weekends or other popular travel periods, which can lead to overspending. Your game plan can consist of beach hopping with friends. For example, several weekends can be dedicated to going to the beach. You can stay at a house or an apartment via Airbnb, buy food that’s easy to cook, such as burgers and vegetables you can grill, and split the cost with your friends or whoever you're traveling with.
Look for Combo Deals
Groupon, Expedia, and Gate1Travel have getaways with hotel and airfare (and sometimes an excursion) included at various price points. Some trips (hotel + air) are as low as $499 when you travel with a friend. Other trips are for all-inclusive resorts where you don’t have to pay for food and drinks because it’s included in the price. However, you can go to a local market to buy food so you won’t eat out as much or you can pack your snacks in your checked bag.
Go on a Road Trip
My friends and I are going on a road trip from Philadelphia, Pennsylvania to Ottawa, Canada. We will split the cost of gas and we buy food for the journey. We rented a house through Airbnb that cost $97.62 per person. Based on our last road trip to Canada, the price of gas will be around $14/person and the price of food will vary. Think about where you can split the costs.
Book in Advance & Leave on a Thursday
Companies like Amtrak have deals where you can purchase tickets for cheap if you purchase it weeks in advance and preferably on an “off day” like a Tuesday or Thursday. Peak days are Fridays and Mondays because most people depart on Fridays and return on Mondays.
Repurpose Your Wardrobe
Going on vacation usually means a trip to your favorite clothing store to buy a few articles of clothing. However, why not repurpose what you have? Below are several ways you can repurpose your clothes:
Create your own distress jeans look by cutting and ripping your jeans.
Cut your jeans and make them shorts.
Tie the bottom of your shirt into a knot on the side on in the back.
Cut off the sleeves of a shirt.
- Make a crop top shirt by cutting your shirt in the area just above your navel.
BONUS: If you are a blogger who has been consistent with posting good content and can provide a media page, you can ask a hotel representative if they are willing to collaborate with you. The collaboration will consist of you offering to write a blog post and an Instagram post about the hotel and, in return, you receive a complimentary stay.
Based in Philadelphia, Tia Johnson is a spiritual lifestyle entrepreneur, an international speaker, Amazon best-selling author, podcaster, blogger, and creator of The Spiritual Lifestyle Collective. Through spiritual teachings and healing, such as chakra and Reiki, she helps her clients to pinpoint the limiting beliefs that prevent them from living a phenomenal life they love, to heal emotional setbacks, and to create strategic plans to execute proactive actions on a personal or entrepreneurial level.