Financial Empowerment

It is no surprise that many communities in the Black neighborhood are in a state of need. From our schools, neighborhoods, and income levels- we are have fallen behind. Yes, we have made succeded in some areas, but we still have work to do. Black Enterprise has created a written declaration to help us achieve in these areas. It is widely know that if something is written down, merely than spoken aloud, we retain the information better and we make more of an effort to achieve that goal. Last year, I decided to adopt the 10 practices in the Declaration of Financial Empowerment. And it goes as follows:

From this day forward, I declare my vigilant and lifelong commitment to financial empowerment and hereby pledge the following:

1. I will use home ownership as a foundation to build wealth
2. I will be proactive in managing my budget, credit, debt, and tax obligations.
3. I will maximize my earnings potential, live within my means, and commit to save and invest at least 10% of my income.
4. I will ensure that my investments are properly diversified and correspond to my current financial needs.
5. I will immediately commit to a program of retirement planning and investing .
6. I will preserve and protect my assets through proper financial and insurance planning.
7. I will ensure that my children receive a thorough education on financial matters and business issues.
8. I will ensure that my wealth is passed on to future generations through proper estate planning.
9. I will actively support the creation and growth of viable, competitive black-owned enterprises.
10. I will use a portion of my wealth to strengthen my community.

I admit I haven't got a chance to put all of these to use. But, the two I am most proud of is that I purchased my first home least year and I started a 529 college plan for my daughter. As everyone says there is NOTHING like owning your own home. All the paperwork and stress has been worth it, because there is nothing worse than being on government assistance and the workers treat you like you are a third- class citizen, never mind that you go to school full-time and work.

Source: Black Enterprise

April is Financial Literacy Month

While the month of April may be known for Easter, spring time, and rain showers, it is also Financial Literacy Month. Financial literacy can mean many different things to different people. For some it may mean teaching their children to be financially responsible. For others it means living a debt-free life. It's not a secret that many Americans, especially in the 18-40 year-old range are living with an enormous amount of debt. Why not start today by choosing to become more financially responsible? As small business owners it is very tempting to overlook these things without thinking about how it can affect us later on.

Some of my suggestions are:

• State 529 Plans for your child's education: All 50 states are offering a 529 Plan. Even states such as Kansas, Maine and Pennsylvania offer a deduction on your taxes to ANY state-sponsored 529 Plan. Check out Kiplinger's for all the state 529 Plans.

• Invest or contribute to a SEP or SIMPLE IRA: This is something that ALL small business owners should be doing. Since we are business for ourselves we cannot rely on a 401k or pension plan to help us during " retirement." Investing in a SEP or SIMPLE IRA still allows you to have a retirement account while still being a small business owner. The IRS.gov website offers much more insight on these types of plans and how they can benefit you. Check them out.

• Other choices can be investing in mutual funds or stocks outside of your IRA, buying individual stock, or even creating a monthly budget.

• Create a living will or trust acct. In the event of your death your wishes will be carried out from what is stated in the will or trust. This may eliminate going through probate court- which can be a very length and emotional process. Sites such as legalzoom.com or medlawplus.com can assist you in creating a living will for a small fee. The wills are legally binding and are much cheaper than going through a lawyer.

The possibilities are virtually endless. It is up to us to become more financially responsible. Happy Financial Literacy Month!