By Gary A. Johnson – Black Men In America.com
Updated June 30, 2025 (Originally posted November 5, 2010)
How Black people spend their money has been a hotly debated topic not only on this site, but in our office, at social events and in beauty and barber shops across America. This article has been the most read and commented article for 15 years running. Given its impact, I’ve updated it to reflect current realities and offer fresh insights.
Gary Johnson – Publisher (Black Men In America.com)
What Black Consumers Say About Money
According to the Pew Research Center, most Black adults are clear on their financial goals:
- 67% say being debt-free is essential to financial success.
- 65% want enough money to enjoy life.
- Nearly half (49%) see home ownership as crucial, while 44% emphasize passing down assets and 43% want multiple income streams.
Yet most also rate their current financial situation negatively (64%). Over half worry about money daily, and 28% say they couldn’t cover three months of expenses if they lost their income.
Black Spending Power & Consumer Habits
- In 2024, Black purchasing power reached $1.8 trillion, outpacing general U.S. consumer spending at 5% vs. 3% annual growth.
- The median wealth of Black families is just $44,900.
- Top purchases? Salty snacks, soft drinks, vegetables/herbs.
- Black and Hispanic consumers outspend Whites by 30% on clothing, cars and jewelry.
- 25% of Black consumers prioritize products reflecting their culture.
But there are also deep challenges:
- 59% say they’ve been mistreated in stores.
- Only 33% use mobile banking; 55% are unbanked or under-banked, relying on cash.
And tellingly, Black consumers say they’re willing to shift $260 billion in spending to companies that truly meet their needs.
Where the Money Goes: Spending Priorities
For low-income Black households, spending looks like this (Bureau of Labor Statistics):
- Housing – 45.5%
- Food – 23.5%
- Transportation – 11.5%
- Healthcare – 4.1%
- Entertainment – 3.8%
The Black hair care industry alone is valued at $2.51 billion, with Black women spending 9x more on ethnic hair products than non-Black consumers.
Highlights from “Big Spenders, Small Investors: Blacks Have Little to Show for Hard-Earned Dollars”:
Are We Spending Wastefully?
While there’s no inherent connection between Black people and Lincoln vehicles, there are some interesting trends and historical contexts to consider. Lincoln, as a luxury brand, has been historically associated with certain demographics, including older buyers and those seeking formal transportation like limousines. Additionally, Lincoln has made targeted marketing efforts towards Black consumers, particularly younger generations, which may contribute to perceptions of a connection.
Some surveys and reports suggest that Black Americans, particularly younger generations, show a higher propensity to purchase luxury vehicles, including Lincolns. One report indicated that Black people are 40% more likely to drive a Lincoln compared to other races according to BLAC Detroit.
Serena Williams is the face of the new 2025 Lincoln Navigator. From my perspective, this is a clever marketing move on the part of Lincoln as they are tapping into Williams’ widespread social media influence. Serena is the G.O.A.T. (Greatest Of All Time) of tennis, and a force in fashion, and philanthropy.

According to marketing studies, each year Black Americans spend:
- $47 billion on Lincoln vehicles
- $3.7 billion on alcohol
- $2.5 billion on Toyotas
- $2 billion on athletic shoes
- $600 million at McDonald’s and fast food chains
Yet only 43.9% of Black Americans own homes (vs. 73.5% of Whites), and most have under $50,000 in retirement savings. Dr. Boyce Watkins put it bluntly: “We don’t use money to invest or produce. When we get our tax refund, we go straight to the store.”
Historical Roots & Systemic Barriers
Here’s something to think about. According toTingba Muhammad of the Nation of Islam Research Organization (NOIRG) wasteful Black spending is rooted in slavery. According to their research 42 million Blacks have a spending power amounting to $1.1 trillion, which gives each man, woman, and child an annual spending power of $26,200 dollars. Blacks spend their money overwhelmingly with white businesses on the following products and services:
- Tobacco $3.3 billion
- Whiskey, wine, and beer $3 billion
- Non-alcoholic $2.8 billion
- Leisure time spending $3.1 billion
- Toys, games, and pets $3.5 billion
- Telephone services $18.6 billion
- Gifts $10 billion
- Charitable contributions $17.3 billion
- Healthcare $23.6 billion
Nation of Islam researchers argue this spending pattern is rooted in history: after slavery, many Black Americans distrusted banks or legal systems. Instead, they trusted only what they could immediately buy and hold. That psychology, they say, was deliberately reinforced by economic oppression.
So, today, many Blacks don’t trust banks, or the courts—Blacks “trust” only that which they can hold in their hands at that very moment. As destructive as that behavior is to Black progress is exactly how profitable that behavior is to whites—who will do anything to keep Blacks on that thinking track.
55 percent of Black Americans are unbanked or under-banked meaning they do not have a bank account or the appropriate bank account. (Federal Deposit Corporation Survey)
Meanwhile, systemic policies still widen the gap:
- The Homestead Act excluded Black families from land ownership.
- The original Social Security Act left out domestic/agricultural workers — mostly Black.
- Redlining blocked Black home ownership.
Result?
- 76% of Black consumers live paycheck to paycheck.
- How Long Does Money Stay in Various Communities?
- Black community: 6 hours
- White community: 17 days
- Jewish community: 20 days
- Asian community: 30 days
How Higher-Income Black Americans Spend
A Merrill Lynch study of Black households earning $125K+ found they:
- Focus on supporting family, paying off debt, and preparing for retirement.
- Are 5x more likely to financially support parents than other affluent groups.
- Invest more in entrepreneurship and unique career paths — yet reinvest only ~$68K into businesses vs. $468K for white counterparts.
A distinct “black elite” or “black upper class” is emerging, comprised of individuals with high disposable incomes and net worth, including entrepreneurs, professionals, and high-earning individuals in various fields.
A study by Credit Suisse and Brandeis University’s Institute on Assets and Social Policy found key differences in wealth-building approaches:
- Wealthy Black Americans are less likely to invest in stocks and bonds, favoring safer assets like CDs, savings bonds, and life insurance.
- Black Americans invest more in real estate than Whites—41% of non-primary residence assets versus 22% for Whites.
- Black business owners reinvest less in their businesses—$68K on average vs. $468K for White business owners.
- White business owners invest 7 times more in their companies despite equal business ownership rates.
Matthew Corbin’s 5 Reasons Why Black People Struggle Financially:
- Spending more money than earned
- Lack of support for Black-owned businesses
- Insufficient savings
- Limited investment knowledge
- No clear plans to escape poverty
The Church & Black Wealth
No discussion of Black money is complete without mentioning the church.
Since 1980, Black churches have collected an estimated $420 billion in tithes and offerings, an average of $252 million a week. Author Byron Woulard argues: “The money spent tithing could have bought 93,000 homes or paid college tuition for 933,000 students.”
I wonder how many churches in the US have ATM machines on-site? With the swipe of a credit card, you, too, can give to God.
Photo Credit: Mike Hammer – Charlotte Observer.com
Historical Context: “The Secret of Selling the Negro Market”
For a fascinating look at historical perceptions of Black consumer power, check out the 1954 film The Secret of Selling the Negro Market. Created by Johnson Publishing Company, the film was designed to educate white advertisers about the purchasing power of Black Americans. This film shows how Black spending habits were viewed decades ago and invites reflection on how far we’ve come—and how far we still have to go.
So What’s Next? Building Generational Wealth
Experts like Kimberly Anderson-Mutch offer solutions:
—Teach kids about money early.
–Invest in real estate.
–Build businesses.
–Buy stocks & diversify income.
–Write wills & estate plans.
The racial wealth gap isn’t just a historical problem — it’s alive and well in 2025. Despite higher levels of education and entrepreneurship, the typical Black family still holds only a fraction of the wealth of white families. In fact, the gap has widened.
Where We Stand Today
In 2025, the typical Black family still owns just 15 cents for every dollar held by a white family. Wealth is generational. Without an inherited cushion, it is very difficult for Blacks to make any significant financial gains.
Black consumer spending is shaped by economic conditions, cultural values, and systemic barriers. This ongoing series aims to spark discussion, provide resources, and promote financial empowerment.
Some economists have suggested that people invest in state-funded trust accounts for every child. These could reduce the Black-white wealth gap from 16x to just 1.4x. Another suggestion is legislation to support first generation home buyer support in the form of grants or forgivable loans for families without inherited housing wealth. One of the most talked about initiatives is targeted student debt relief since Black graduates carry the highest debt loads.
Final Thoughts
This isn’t about shaming Black spending. It’s about awakening our collective power. If we don’t tackle the roots of this problem, we’ll be updating these same stats in 2035. As a community, we can’t wait — we must build savings, support Black businesses, and push policies that close these gaps for good.
If 42 million Black Americans control $1.1 trillion, that’s $26,200 per person, every year. Imagine what could change if more of that money stayed in our hands, invested in our kids, our businesses, and our future.
If you want to educate yourself and others about how to earn and spend your money responsibly, read the book, Black Dollars Matter: Teach Your Dollars How to Make More Sense, by James Clingman.
There is a great organization called World of Money. Founded in 2005, the World of Money is a New York City based 501(c)(3) non-profit organization whose mission is to empower youth through the engaged, local delivery of professional quality financial education. World of Money Founder and CEO, Sabrina Lamb, while attending a financial planning seminar, was inspired by a compelling question. Are children, in the course of their education and upbringing, getting this information on how to manage their financial life? After conducting some research on the subject, Ms. Lamb found that the answer to her question was a resounding “no”. So, after affirming the detrimental effects of this knowledge gap, she set forth to leverage her experience as an entrepreneur and love of working with children to create World of Money. Click here to visit their website and learn more.
There over 35 Black owned banks and credit unions in the United States.
Check out the list below!
- Omega Psi Phi Credit Union – Lawrenceville, Georgia
- Phi Beta Sigma Federal Credit Union – Washington, DC
- One United Bank – Los Angeles,California
- FAMU Federal Credit Union – Tallahassee, Florida
- Credit Union of Atlanta – Atlanta, Georgia
- North Milwaukee State Bank – Milwaukee, Wisconsin
- Seaway Bank – Chicago, Illinois
- The Harbor Bank- Baltimore, Maryland
- Liberty Bank – New Orleans, Louisiana
- United Bank of Philidelphia – Philidelphia, Penn
- Alamerica Bank – Birmingham, Alabama
- Broadway Federal Bank – Los Angeles, California
- Carver State Bank – Savannah, Georgia
- Capital City Bank – Atlanta, Georgia
- Citizens Trust Bank – Atlanta, Georgia
- City National Bank – Newark, New Jersey
- Commonwealth National Bank – Mobile, Alabama
- Industrial Bank – Washington D.C.
- First Tuskegee Bank – Tuskegee, Alabama
- Mechanics & Farmers Bank – Durham, North Carolina
- First Independence Bank – Detroit, Michigan
- First State Bank – Danville, Virginia
- Illinois Service Federal – Chicago, Illinois
- Unity National Bank – Houston, Texas
- Carver Federal Savings Bank – New York, New York
- OneUnited Bank – Miami, Florida
- OneUnited Bank – Boston, Massachusetts
- Tri-State Bank – Memphis, Tennesse
- Citizens Bank – Nashville, Tennessee
- South Carolina Community Bank – Columbia, South Carolina
- Columbia Savings and Loan – Milwaukee, Wisconsin
- Liberty Bank – Baton Rouge, Louisiana
- Liberty Bank – Kansas City, Missouri
- Citizen Trust Bank – Birmingham, Alabama
- Liberty Bank – Chicago, Illinois
- Liberty Bank – Jackson, Mississippi
- Toledo Urban Credit Union – Toledo, Ohio
- Hill District Credit Union – Pittsburgh, Pennsylvania
Photo credit: Couple counting money — Image by © Jose Luis Pelaez Inc/Blend Image/Blend Images/Corbis
** Sources: U.S. Bureau of Labor Statistics (BLS) Consumer Expenditure (CE) Survey,
http://racisminamerica.org/the-real-reason-why-blacks-spend-their-money-and-dont-save/, CNN, Harvard Business Review,
http://curatorsofdopenessblog.tumblr.com/post/72870270050/black-money-white-money
Gary Johnson is the Founder and Publisher of multiple online platforms, including BlackMenInAmerica.com, BlackBoatingandYachting.com, and others. He is also the author of 25 Things That Really Matter in Life: A Quick and Comprehensive Guide to Making Your Life Better—Today! and a contributing author to The Black Father Perspective: What We Want America to Know and In Search of Fatherhood – Transcending Boundaries: International Conversations on Fatherhood.
Gary launched MasterChef Gary’s Premium Organic Seasoning in 2019 and has since expanded his ventures to include Calculations Talk Show, The Thought Brothers, and a podcast and website supporting the Justice for Black Farmers movement. In 2023, he founded Gary Johnson Media, LLC to focus on public relations and social media strategy.
Most recently, he created Gary’s Weight Loss Journey, a motivational site chronicling his personal path to better health.
Learn more about Gary’s work at Gary Johnson Media, LLC.
“When we’re faced with someone else’s success, it makes us think about why we can’t do it instead of how the other person did do it.”
–Author Chris Hogan
“Everyday Millionaires”
There have been three great books on the subject of wealth that I have been blessed to read over the years. The first one: “Think and Grow Rich” by Napoleon Hill. The second: “Think and Grow Rich: A Black Choice” by Dennis Kimbro, Ph.D. The third one is the newcomer “Everyday Millionaires” by Chris Hogan (2019, 250 pages, Ramsey Press/The Lampo Group, LLC).
Hogan, fresh off of his successful previous work “Retire Inspired” decided to tackle the issue of millionaires from the ground or street level. Hogan has been a regular visitor to the famed Fox Business Network, and is a part of the Dave Ramsey family of financial experts.
There is a lot in the work that may scare more than a few readers–in a good way. The book has eleven chapters, and plenty of ‘action steps’ and quotes from those in the book’s research who have ‘done it’…become everyday millionaires through hard work, sticking to their plans, and not giving up.
According to the Hogan’s research, there are more reasons why people can become millionaires than you can shake a stick at. One of the key factors in accumulating wealth rests in the work ethic of the people involved, coupled with solid marriages. Chapter titles include: “You’ve Been Lied To”, “Live on Less Than You Make”, and “Stick To It”. If you’ve ever wanted a book that can give you flat-out reasons why you can become well off financially without a lot of double-talk, THIS is the work for you.
“Everyday Millionaires” by Chris Hogan is available from your favorite bookstore or electronic book seller. It is worth the investment to give a copy to your favorite graduate, during graduation season.
The Things Millionaires DON’T Invest In
Mike Ramey is a Minister, Reviewer and Syndicated Columnist who lives in Indianapolis, Indiana. He brings current and lesser-known titles to light to re-kindle a love for reading and thinking in a sea of modern technology. Feel free to reach him via email at manhoodline@yahoo.com. © 2019 Barnstorm Communications.
Creating and managing a budget can be difficult. Even if you are not a business owner, it is important to organize your finances so that you are able to afford the things you want, and save for your future as well! There are many tools available which can help you with tracking your spending, paying your bills, and assisting you with saving and investing for the future.
One such app is called You Need A Budget (YNAB). This tool has a very intuitive interface, and syncs all of your accounts in one place. Having everything in one spot makes it simple to take an overview of your current financial status, and where you can make improvements. You are also able to sync up with family members so you all have instant access to the budget plan. YNAB costs 84 dollars a year, but on average customers save around 6,000 dollars! You can find out more about how YNAB differs from other budgeting apps here.
Secondly, it is important to make sure you are saving! It is recommended that 20 percent of your income goes towards savings. Chime bank has a helpful automatic savings tool which rounds purchases to the nearest dollar. The roundup is then transferred into your savings account! Chime also has no fees which can save you over 300 dollars a year. The average individual spends around 329 dollars a year on banking fees, so a bank with no hidden fees is another great way to save!
BillGO is another great app for assisting you with your budgeting and finances! BillGO allows you easily view all of your bills on one simple app. Everything is always up to date, and the app is extremely easy to use! They even have option which makes it easy to split bills. This feature is perfect for those who have roommates and may be splitting rent and utilities!
Although creating a budget and managing money can be difficult, there are tools out there to help. Find the app that works best for you, and get your finances back on track!
How to Kickstart a Budget When You are Doomed by Debt by Andy Masaki
What does it take to break free from your debts? What do you think? It’s money right?
Well no!! It’s a budget that can help you to be debt free.
But there’s one big problem, when you are in debts. Your head can’t think right and straight. Too many thoughts, too many debts, utter confusion, and you seem to be doomed by your own money mistakes!
Credit cards seem to be flying all around you like honeybees with their debts like poisonous stings.
Some even have payday loans to take care, while others are busy fighting student loans.
And, don’t tell about those demotivated cutie femmes, who have a mortgage or an auto loan to defeat!!
In such devastating times, the last thing you want to do is keep your debts aside and think about a budget. You might feel the rush to use up your whole paycheck to wash all of your debts!
And that’s where we make the biggest blunder of all….
Remember it’s all about right channeling of your money. If you can’t pull the rope from both ends, one end being income and the other the expense, then the rope will fall.
Here’s how to start a budget when you are in debt:
- First understand how much money you need to clear your debts:
This part is the most crucial and fundamental part for you to formulate a budget.
Your debt amounts will impact your budget to a great extent. If you don’t know how much is about to go out, then you will have no idea how much to store.
Moreover, prioritize your debts. Obviously at the first glance secured debts seem to carry the highest importance, but guess what; it’s the unsecured debts that should be your primary affair!
Secured debts like mortgages or auto loans are long term accounts, that you can’t get rid of whenever you want. They have a fixed set of terms, conditions and time limits. Clearing a loan before the scheduled time can result into a penalty.
So, our concern is definitely unsecured debts or consumer debts. These include credit cards, personal loans, and anything else that’s not backed by a security.
Therefore, calculate all your debts, and get a clear number in your head, that this amount of money is what you need to clear all of your debts.
- Second, list your regular expenses for each month:
Beside debts, we all have other expenses to deal with.
The best thing you can do is list all such expenses one by one as per their priority. Like groceries, utility bills, transportation costs, and all, are your first priority. You can’t live without doing these expenses. They comprise your livelihood.
Notably, these expenses are also flexible, and you can minimize them without much of a hassle. Everything depends on you. Say, you can avoid eating outs, or if needed stop using your car too much, and instead use public transports.
Also try to regulate energy consumption, so that you can save on your utility bills. These small changes that you will make, will save you a lot, which you can in turn use to make extra payments for your debts.
- Allocate fixed amounts to all of your expenses:
Be predictive, responsible, and assign fixed values to all of your expenses. I understand that there’s always something called unexpected expenses in everyone’s life, but your aim should be to minimize them as much as you can. Probably that’s why you should save money for emergency expenses.
Also don’t miss out on the debt payments. Count them in as a part of your expenses.
See cutie, there’s nothing called a fixed budget as such! At least I don’t believe in it. I believe that you are the budget itself!! If you want, and if your decisions are right, then a budget is accomplished.
So, list all the expenses and write down the fixed values beside them. Once you are done, add them up and see whether or not it’s crossing your total income.
If your total expenses are falling under your income limit then your budget has played well!
Practically the aim of controlling your expenses, is to increase your savings. So with whatever amount is left after subtracting your expenses from income, you use it to do extra debt payments or satisfy your savings goal.
Now what if the budgeting itself is not enough, your debt payments are huge and are crossing your overall income?
This is when you feel injustice is being done to you.
But there’s a big time solution. Take help of a debt payoff calculator to see how much you can save on your debt payments, if your income is not consenting with your debt expenses.
You can also get a part time job, or an extra side hustle if you want to increase your income.
No matter whatever you do, you still have to budget your money for your own good! Else nothing can help you in the long run.
With this we come to the end of our discussion. Hope this article was of some help for your debt situation. Don’t forget to comment down below, for further advice and queries!!
Author Bio: Andy Masaki is a financial writer and blogger who specializes on the topic of debt. He frequently writes for the Oak View Law Group and is a active member of several online forums where he shares his tips on how to lead a financially independent life.
Single Woman’s Guide to a Mortgage-worthy Credit Profile
Financial inequality can affect a woman’s credit – here’s how to build it up
Research shows women often face challenges getting approved for home loans, and financial gender inequality may be to blame.
According to a study conducted by the Woodstock Institute, women are more likely than men to be denied mortgage loans. Typical reasons for mortgage denial include a high debt-to-limit ratio or a poor overall credit history.
The gender pay gap is a big reason why many women struggle for total financial independence. While the large-scale fight for gender equality is long and collaborative, there is something you can do to play a part: maintain a high credit score.
A strong credit score is important for financial equality
Your credit score is a tool lenders use to determine your trustworthiness when borrowing money and answer questions about your financial habits. Will you max out your credit line? Will you pay your bills on time? Will you pay off your debt in full? Are you a high-risk or low-risk borrower?
Anytime you try to borrow money – whether on a credit card, small business loan, car loan or mortgage – your credit report and overall score will be reviewed to determine if you’re approved or denied and what your interest rate and credit limit will be.
A high credit score can also protect you (and your kids, if you have any) in case of divorce, a spouse’s death, or events that cause your spouse’s credit score to drop.
Gender roles in society have an effect on women and credit
Women sometimes have thin credit files due to traditional gender roles. An example is a household in which the husband is the family’s financial manager and applies for all credit cards and loans in his own name. In this case, his wife will not have an opportunity to build credit unless she obtains other credit lines in her name. If the husband dies or the couple divorces, the woman may find it difficult to strike out on her own.
A relatively low income – perhaps due to gender bias in a workplace – can also hamper a woman’s ability to build credit.
One of the most important factors lenders use to calculate your credit score is credit utilization. Credit utilization indicates how much of your total available credit you’re using. For example, if you have a card with a $2,000 limit and your balance is $1,000, you have a credit utilization ratio of 50 percent. The lower your utilization, the better your credit score will be.
Credit limits are often based in part on how much you are able to pay each month. So, since women typically make less than men (thanks, gender pay gap), that can result in a low credit limit, and a better chance of credit score damage from high utilization.
Click Here To Read More
An Exclusive Interview with James Hunt the “Celebrity Guru of Atlanta”
Special to Black Men In America.com
Posted April 1, 2018
They call him “The Credit Guru of Atlanta.” James Hunt is a celebrity wealth management expert who helps high profile individuals to manage their wealth, and most of all, get rid of negative marks on their credit that adversely affect their scores. Whenever they are looking to buy an exotic vehicle or purchase a multi-million dollar mansion in Atlanta, they stop by his office first.
Hunt helps many of the nations biggest A-list celebrities, athletes and businessmen and women to address credit issues, eliminate debt, manage their wealth and stay financially healthy. He has recently become the official credit adviser to the NBA, where he will help all 472 players with their credit starting in the 2018-2019 season. Connecting with can mean improving credit scores from 500 to 750+ and money management strategies that lay the foundation for generational wealth.
He is also the author of a book entitled “Debt Free is the New Rich,” which contains information to educate readers on things like how to identify and dispute inaccuracies, and how to remove negative marks from their credit reports. He wants people to recognize that no matter how much money one has, poor credit can have a very detrimental affect on your ability live the life you desire! Many of the rich have many of the sames issues as the everyday American. Credit education must start early, so this is perfect not only for adults or entrepreneurs, but entire families as well.
April is Financial Literacy Month and it is a perfect time to share valuable information about the importance of maintaining good credit.
In the black community, credit education is often not discussed in our homes or in church. However, poor credit is one of the biggest barriers to establishing the elusive generational wealth that we all seek for our families. James will share the work that he does not only with his wealthy clients, but also everyday individuals who are trying to get on track with their finances. He can share insight on how to better understand the information on credit reports, how to identify negative marks and inaccuracies, and also how to dispute them with creditors.
Here’s Our Exclusive Interview with the “Credit Guru of Atlanta,” James Hunt
Black Men In America.com: As the “Credit Guru of Atlanta,” can you describe for us exactly what you do to help your clients?
James Hunt: I handle credit issues and financial issues for all of the absolute top celebrity clients for the NBA, the NFL and the music and entertainment industry. Everybody from Akon to Jermaine Dupri, Bow Wow, Vincent Herbert and people I cannot even mention, you name it, I am their go-to person. I am the person helping them to secure the multi-million dollar home or the exotic car they are looking to purchase. If they need something, I make it happen.
Black Men In America.com: What is a typical day like for you?
James Hunt: I wake up and I am on my feet every morning by 6:00 am. I am in the office by about 6:20 am and then I print all of the emails and prepare all of the paperwork for when the workers arrive at 9am. From that point on, it gets crazy. I receive about 40 to 50 new clients who need help with their credit everyday.
Black Men In America.com: When considering the economic state of Black Americans in this nation, how big of an impact does credit (or lack thereof) have on our community’s inability to generate real wealth?
James Hunt: Your credit is basically your power. We have raised a new generation that simply thinks that cash is king. They find themselves trying to get cars and trying to get homes and they realize their signature means nothing. It is worthless. There are celebrities with tons of money and their signature is almost not worth anything but an autograph. Credit is really what makes the world go ‘round as far as finances are concerned. My opinion is, every door you need to get into financially is going to have something to do, if not completely to do, with your credit.
Black Men In America.com: What are some of the biggest mistakes people make regarding their credit, that they may not know they are making?
James Hunt: Neglecting to make on time payments and the assumptions that if you pay late there will be no serious repercussions, and not knowing that negative payments will show up on your credit report as a negative account for 7 years from the date of the late payment. There should never be a late payment in your credit report, ever.
Black Men In America.com: If you have a low credit score, what are some of the most important steps one should take to repair their credit?
James Hunt: This is not an easy question. If the score is only low as a result of utilization and you blowing your credit cards up, the only way to address that is to develop a plan to start putting money aside to start paying them down. If your score is low because of negative accounts, you must do everything you can to challenge those negative accounts and aggressively go after them. Make contract agreements with the creditors or collection agencies to see if you can get them to take a percentage of the debt with the agreement to remove it out of your credit report. If you see anything is inaccurate, then remove the entire trade-line by disputing those accounts and having them completely removed from your credit report.
Black Men In America.com: Word on the street is that you are currently in negotiations with the NBA to provide credit education to all 472 players in the league. Why is it important that athletes, many of whom are black, receive this help?
Photo: (From left to right): Rapper Rich Quan, James Hunt and NBA star Michael Beasley
James Hunt: I think that the tragedy with colleges across the nation is that while they prepare, or give the appearances that they are preparing you for the real world, some of the most important things in the real world they don’t prepare you for. These athletes come out of college just like any other student usually burdened with debt and even though a new NBA or NFL player has the potential to make a tremendous amount of money, they find themselves dealing with many of the same issues that regular people deal with. For instance, if you had a collection account or a student credit card that you had blown up and had late payments that went to charge-off status, all of that is going to stop you from being able to purchase that dream house or those dream cars that you wanted if you are going to finance it. Without the proper education, the cycle continues. Absent of paying a full amount in cash, if you are going to get the credit that you need, it doesn’t matter what your financial status is, you play by the same rules as everybody else. You have to make on-time payments and you have to keep your credit score up.
Black Men In America.com: Tell us about your book “Debt Free is the New Rich.” What is the meaning behind the name and what kind of information can people expect to find when reading it?
James Hunt: The name came about because I was in a heated debate with a celebrity client who was telling me that he really didn’t need credit because he was rich. I thought about it, and in the process, my argument to this particular music artist was that debt free is really the new rich, which turned out to be the title of the new book. It is a genuine argument. The person who has no debt and is debt free is the person who is really rich. So, it matters not necessarily what is in your bank account, or how many digits are in your bank account that makes you really rich, but what your debt is that determines whether you are rich or not.
Black Men In America.com: What do you say to the person who says they don’t know where to start to improve their credit?
James Hunt: We live in a society where all of the information is readily available at your fingertips with Google and the other search engines. If you really want to know what you can do and what your rights are as a consumer, you have the ability to know. The idea of not knowing is no longer an acceptable excuse. Educate yourself and get your credit in order so you can live how you desire to live.
Black Men In America.com: How can people get a hold of your book, “Debt Free is the New Rich”?
James Hunt: It will soon be available on my website, but for now, people can contact me directly at jameswhunt1963@gmail.com. You can also follow James Hunt on Instagram @thecreditguruofatlanta and @whoisjameshunt.
April is Financial Literacy Month. Here are some tips James Hunt is sharing for people to increase their credit scores and ultimately change the trajectory of their lives. Here are a few:
- Be proactive – Know what is in your credit scores. You can access your credit report once every 12 months for FREE from all three Credit Bureaus: Equifax, Experian and Transunion.
- Check your report for any discrepancies.
- Dispute any and all inaccurate information on your account immediately.
- Document Everything! Keep records and follow up with creditors. If they say they are going to remove something, make sure they do it and you have proof of their commitment.
Publisher’s Note: As a matter of policy when we post interviews about products and services we urge our site visitors to educate themselves and not be a “low information” consumer. Do your research and talk to people in an effort to educate and protect yourself.
Special thanks to Ivan Thomas for arranging this interview.
How the Average American Spends Their Lifetime Earnings
Have you wondered how much you will make in your lifetime and whether you will make enough to sustain your expenses after retirement?
This article will talk about how much money you can expect to make and how much of your income you will spend in your lifetime.
- Breakdown of Average American Salary by Age
- Education Matters
- Not All Degrees Are Created Equal
- Other Occupation-Related Factors that Contribute to Salary Differences
- Income Difference by Geographic Locations
- Gender Inequality Issue
- How Much Does an Average American Spend?
- The Reality of Savings
- What You Should Know About Your Taxes
- Plunging Your Money on Interests in Your Lifetime
- How Much of Your Income Goes into Living Expenses?
- The Reality of Spending
- Conclusion
- Earnings Depending on Education
How Does Your Salary Compare to Those of Your Peers?
According to a survey conducted by the US Census Bureau in 2015, the median individual salary of an average American is $33,617.
Based on calculating the average career expectancy to be 40 years and assuming the annual salary to remain static throughout the career, an average individual in United States is expected to earn approximately $1,344,680 in his/her lifetime.
As for couples, the median income is $82,078.
When calculated with the same formula, the average household is expected to earn $3,283,120 in its lifetime.
You probably think that this number is highly inaccurate for aby of the following reasons:
- How much you actually make in comparison to that number
- The unlikeliness of your salary remaining the same throughout the years
- The fact that you may work more or less than 40 years.
You may think these numbers are not relatable to your situation at all, but quite the contrary!
It plays an important role in allowing you to start visualizing how much money you can make in your lifespan and how you measure up against the rest of the country.
If you are over the median range, you are off to a great start.
But if you are below the median, do not be discouraged.
By understanding how various factors can affect your salary earnings, you can work towards a better future.
Breakdown of Average American Salary by Age
One of the reasons that you may earn less than the country’s median annual income range is that you are a relatively fresh employee.
Because age is often correlated with job experience and knowledge/expertise, it is rather predictable that younger workers earn less than older workers.
But the question is how much salary change can you expect in your career?
And can you expect your salary to plateau in a certain age range?
To answer,, let us first look at the median yearly income for various age ranges:
Age | Median Yearly Income |
---|---|
16 – 19 | $22,152 |
20 – 24 | $27,456 |
25 – 34 | $40,456 |
35 – 44 | $49,244 |
45 – 54 | $52,052 |
55 – 64 | $50,024 |
65 and over | $46,800 |
As illustrated in the graph, the age group between 16 and 19 has a much lower annual income.
This is because the jobs available to individuals in this age range tend to be minimum wage entry occupations that are often related to manual labor workforce.
As seen in the 20 to 24 age group, the wage increase leaps by about $5,000.
This has to do with the number of workers achieving a higher education and receiving much better wages in their early 20s.
Now here is the catch:
According to statistical studies done by the Federal Reserve Bank of New York, your salary in your 20s has a major effect on how your salary will increase in the future.
In essence, the higher your start-off salary is, the more drastically your wages will increase between the ages of 25 and 55 before tapering off until your retirement.
For the average employee, the wage will surge by 38% between the ages of 25 and 55 and then plateau as they shift towards retirement.
Sadly, this only applies to individuals who are within the average range.
Those who remain among the lowest 5% of earners in society actually see a decline in their incomes over the years between the ages of 25 and 55.
You may wonder why.
This is because many of these low-paying jobs are manual, labor-intensive occupations and individuals are much more likely to suffer from physical injuries and to be pushed out of their jobs as they become less productive.
The only individuals who continue to see their salaries surge ahead are those lucky ones who rank in the 95th percentile range of America’s economic status.
These individuals are most likely highly educated professionals such as lawyers, engineers, doctors, technology-related experts, and large business owners.
During their career, they can expect their income to grow 1,500% of their starting wage.
Education Matters
With so many college students so heavily in debt, many people wonder if higher education is really worth the investment.
This debate boils down to whether people with a college degree will earn more than those without a college degree…
The answer is YES.
As mentioned earlier, from the analysis of the wage difference based on age differences, those in the 16 to 19 age group are usually workers who do not have a college education.
There are even individuals within that group that have not graduated from high school.
Relying only on their restricted amount of knowledge and skills, they have a very limited amount of occupation selections.
On the other hand, just by having a college degree, individuals will considerably increase their occupation options and are 20% much more likely to be hired than those who only hold a secondary school diploma.
As of 2015, fresh college grads already earn $5,000 more than workers without higher education.
Over time, the wage gap between the two groups will drastically become wider as the higher schooling group sees a constant wage increase whereas the latter group remains as minimum wage workers of the society.
Debate on High Tuition Fees and Student Loans
For skeptics who raise the problem of student loan debts, here is an analysis of whether a college degree is truly worth your time and money.
According to the data provided by the National Center for Education Statistics, the cost of a 4-year college education averages around $56,000.
In 2010, the cost of the same education deal averaged around $82,000.
Although it seems that the price has soared by 50% over 30 years, many people have not accounted for several factors:
- Economic inflation over 30 years
- Increase of financial aid available to students that charges a much lower interest rate now than 30 years ago
- Increase of scholarships provided to students with great grades and/or who have made great contributions to society
- Forgiveness programs available for high-demand occupation degrees
- More tax-deductible benefits available for individuals who are paying back their student loans
Just by going over these four factors, one notices the rise of tuition fees is not so drastic after all.
Even though you are required to pay back the student loan, your immediate higher pay and substantial wage increase over time will allow you not only to get out of debt sooner but also to purchase a home faster.
However, if you decide to forego higher education and opt to enter the job environment sooner, even though you may start earning money earlier, you will have less chance of a wage increase.
Over time, that will make you the hare in the money race.
If you are still not convinced, let us take a closer look at the survey conducted in 2016 by the United States Bureau of Labor Statistics.
According to the data:
- Full-time employees who are 25 years old and over without a high school diploma have a median weekly wage of $494.
- Full-time employees who are 25 years old and over with only a high school diploma and no higher education have a median weekly wage of $679.
- Full-time employees who are 25 years old and over with some higher education (e.g. associate’s degree or some college experience) have a median weekly wage of $782.
- Full-time employees who are 25 years old and over with a bachelor’s degree have a median weekly wage of $1,155.
- Full-time employees who are 25 years old and over with an advanced degree (e.g. professional training, master’s, and/or doctoral degree) have a median weekly wage of $1,435.
If these individuals work all 52 weeks in a year, their median annual income comes to:
If you take a look how much the median bachelor’s diploma-holding individual makes in a year ($60,060), a 4-year education merely costs 1 ½ years of their earnings.
In exchange for the tuition fee, you can climb to a much higher earning status within a shorter amount of time.
If you need even more proof, according to the information provided by U.S. Census Bureau, it is estimated that a master’s degree will earn you about $1.4 million more in lifetime earnings than if you were to hold only a bachelor’s degree.
Solely from this information, we can see that a higher education degree will boost both your starting income and your wage increase over the years.
Hidden Perks of Higher Education Jobs
Something often not mentioned is the added work-related benefits enjoyed by people in higher education jobs.
They can enjoy more paid vacation days, which translates into fewer actual working weeks, than the lower education group does.
Moreover, these individuals also enjoy other work-related benefits such as better health insurance and life insurance plans as well as more money put towards their retirement savings.
All these can decrease their annual expenses and increase the money they can enjoy after retirement.
So unless you are the next Bill Gates, Steve Jobs, or Mike Zuckerberg, attending college is always a great investment to boost your earning power.
Not All Degrees Are Created Equal
Even though a college degree is a crucial factor contributing to a person’s earning advancement prospects, there are a number of things you should know:
- Any college degree, associate degree, and even some college education, will allow individuals to earn more than those with only a high school education. This fact is true whether you are comparing income during the start of a career, midway in a career, or at the end of a career.
- There is always a discrepancy in salary amongst individuals within the same occupation. Those who are more qualified or trained in a more prestigious college will often receive a pay rate that is higher than others.
- There are always exceptions to the rule. Some individuals with only a high school diploma will out-earn those with a bachelor’s or associate’s degrees. And there will be some college graduates who will earn an income that is within the low-income range.
Top 10 Highest Paying Jobs That Do Not Require College Degree | ||
---|---|---|
Rank | Job | Entry Career Wage |
1 | Janitorial Managers | $93,500 |
2 | Auto Body Service Managers | $93,400 |
3 | Nuclear Reactor Operators | $91,170 |
4 | Transportation, Distribution, and Storage Managers | $89,190 |
5 | Aircraft Mechanics | $85,200 |
6 | First-line Supervisors of Detectives and Police Officers | $84,840 |
7 | Power Distributors and Dispatchers | $81,900 |
8 | Elevator Installers and Repairers | $78,890 |
9 | Detectives and Criminal Investigators | $78,120 |
10 | Commercial Pilot | $77,200 |
10 Lowest Paying Bachelor Degrees | 10 Lowest Paying Graduate Degrees | ||||||
---|---|---|---|---|---|---|---|
Rank | Major | Degree | Entry Career Wage | Rank | Major | Degree | Entry Career Wage |
10 | Elementary Education | Bachelor | $34,700 | 10 | Teaching English as a Second Language (ESL) | Master’s | $40,300 |
9 | Youth Ministry | Bachelor | $32,900 | 9 | Counselor Education & Counseling Psychology | Master’s | $40,400 |
8 | Human Development & Family Studies | Bachelor | $34,300 | 8 | Studio Art | Master’s | $38,800 |
7 | Therapeutic Recreation | Bachelor | $35,200 | 7 | Professional Counseling | Master’s | $39,400 |
6 | Social Work (SW) | Bachelor | $33,800 | 6 | Reading & Literacy | Master’s | $40,000 |
5 | Human Services (HS) | Bachelor | $34,000 | 5 | Divinity | Master’s | $44,000 |
4 | Child Development | Bachelor | $32,000 | 4 | Mental Health Counseling | Master’s | $40,200 |
3 | Early Childhood & Elementary Education | Bachelor | $34,800 | 3 | Community Counseling | Master’s | $40,400 |
2 | Child & Family Studies | Bachelor | $31,400 | 2 | Early Childhood Education | Master’s | $38,100 |
1 | Early Childhood Education | Bachelor | $30,700 | 1 | Human Services (HS) | Master’s | $38,000 |
- The top 90th percentile high school graduates out-earn the bottom 10th percentile of college graduates no matter what major they studied.
- Degrees that accentuate measureable specialized skills tend to project the highest earnings. Some examples are engineering, physics, logistics, computer science, finance, and economics.
- Degrees that are associated with children education, home economics, religion studies, counseling, social work, and fine arts tend to have the lowest median incomes.
Should People Make the Switch to More Profitable Degrees?
After looking at the earnings data, many people might jump to the conclusion that if they immediately switch to another major, their salaries will make the adjustment and subsequently increase their lifetime earnings.
This assumption is flawed, however, as many other factors can contribute to differences in salary.
- Your grades matter. If you make a sudden change, you might not be as well-prepared as other students who have concentrated on the same field since as far back as high school. With much more knowledge and experience (e.g. intern jobs, related volunteer work, awards, and scholarships), they will have better opportunities to score much higher-paid starting positions than you.
- You may lack many prerequisites to make the faculty switch. In a worst-case scenario, your college may not offer the program you are looking for.
- Your current college may not be known for certain degrees. Even if you make the change, your resume may look less impressive than those of individuals who have graduated from more prestigious programs.
- Even if you make the switch right away, you have wasted the last few years and will lose more time in catching up with your peers. By entering the job force later than your peers, your lifetime earnings will be significantly less than individuals who have graduated earlier with relevant work experience.
The truth is that the data presented only shows the median salary calculated from the census survey of all individuals who work full-time in their industry.
It means that 50% of these individuals will earn more than the median and 50% will earn less than the median.
As mentioned before, there is always an exception to the rule.
Depending on your knowledge, credentials, and skills, you have the ability to make much more money than your peers.
What matters is whether your knowledge and skills are in high demand.
For example, a hairdresser is expected to earn about $30,000 as their annual salary.
However, elite hair stylists who work with performers and are top of their game can expect to earn upwards of $80,000.
— Read more at https://www.creditloan.com/blog/lifetime-earning-spending/
Scroll down and leave a comment. Tell us what you think.
Helping people get out of debt is passion work for me. Today, African-Americans are significantly more likely to have some type of debt (94 percent) compared to the general population (82 percent). African-Americans have a median household debt of $18,000, not including home mortgages, which is about 50 percent higher than the household debt for the general population. One in four African-Americans has felt anxiety or depression as a result of debt.
We often speak of seeking political freedom, and have worked together as a community effectively towards this aim. Yet today, financial freedom is the next hurdle we must surmount if we want to make even greater gains towards social equality.
Dfree® is a lifestyle movement that I created that places an emphasis on the elimination of debt and addresses the root causes of chronic indebtedness. The dfree approach confronts the emotional, psychological and spiritual causes of debt. “Dfree” stands for freedom from debt, delinquency, deficits and freedom to make deposits to savings, earn dividends and possess deeds that represent ownership.
Drawing on his personal experience and years as a pastor, public policy maker, and community leader, DeForest “Buster” Soaries, Jr. shares the twelve steps to achieving financial freedom in this groundbreaking, life-changing book—Say Yes to No Debt.
“The idea that debt is actually slavery is offensive to all of our sensibilities,” says Soaries, “but when we continue to spend what we don’t have, charge what we don’t need, and borrow more than we can repay, then we must call the problem what it is: slavery. Eliminating debt is the first step toward financial freedom. And we can do it.”
This is not another financial literacy program assuming that all people need is information. Soaries believes living in debt is an emotional, spiritual, and psychological problem as much as it is an educational and informational one.
Here, Soaries shares the twelve steps to financial freedom that have helped families in hundreds of churches. By replacing the “get more money” mentality with a “get out of debt” approach to financial freedom, not only were thousands of people able to become debt free, church’s that have used the dfree® strategy have experienced increased giving by their members.
Find out how you can leave a financial legacy of your own by saying yes to no debt.
Says Soaries: “There may be no greater need than to understand that debt-free living is the first step toward financial freedom. And the result is that we can enjoy life and leave a real legacy for our children.”
dfree ® 12-Step Process
You will establish life goals, track spending, list income and bills, establish banking relationships, and secure all financial documents and records.
8 – Minimize the stress
9 – Give back
Founded in 2005 by DeForest B. Soaries, Jr., dfree® is a financial freedom movement that addresses the cultural, psychological and spiritual influences on financial wellness and offers practical strategies for achieving financial success.
About the Author
What do you think of when you hear the word retirement?
Do you see yourself spending weeks at a time with your grandchildren? Volunteering your time to a worthy cause? Traveling to remote vacation spots you’ve always wanted to visit? Those dreams simply don’t line up with the reality of many working Americans. Rather than packing their bags for a month-long escape, many retirees will be packing their lunch for an eight-hour shift. And it’s not because they want to; it’s because they’re broke! In Retire Inspired, Chris Hogan teaches that retirement isn’t an age; it’s a financial number—an amount you need to live the life in retirement that you’ve always dreamed of. Whether you’re twenty-five or fifty-five, you can start now. Chris will equip you with a plan to make your own investing decisions, set proper expectations with your family for retirement, and build a dream team of experts to get you there. You don’t have to retire broke, stressed, and working long after you want to. You can retire inspired!
About the Author
Chris here to buy Retired Inspired from Amazon.com.
By Erica Quinn, InvestmentZen.com
Posted July 18, 2017
The last decade has seen a marked increase in false assumptions regarding the millennial generation. Despite being the generation promising to make the world a better place, many people assume that due to the high percentage of millennials receiving help from their families, a number reaching 35%, they have a poor work ethic and are completely failing to plan for the future. The data simply doesn’t support those assumptions, however, with a greater percentage in the full-time workforce and higher savings rates than their Gen X counterparts.
The millennial generation faces a unique set of economic challenges. From cripplingly high student loan debt acquired while earning the college degree necessary for even most entry-level positions, to housing costs rising far faster than the median income, millennials deal with challenges different than any previous generation in getting a strong financial start in life. With many housing markets pricing the young families right out of the market, it’s no wonder so many of them still live at home, saving all they can.
Despite higher education rates than any other generation, a millennial with a degree can look forward to a median income comparable to that, adjusted for inflation, of a non-degree-holder in 1980. Savings account interest return rates don’t return enough to be remotely useful as an investment tool, while debt interest rates have skyrocketed. Millennials have responded by having far lower average credit card debt than their parents.
In order to combat the unique challenges they face, millennials are completely redefining the way Americans live, changing the face of professional industries across the board, and living lives in a completely different way than their parents and grandparents. This inevitably brings criticism and pressure from older generations, many of whom oppose change of any kind. Changing circumstances demand changing lifestyles, however.
Take a look at the infographic below for a direct comparison of millennial finances as compared to their predecessors.
Photo credit: Couple counting money — Image by © Jose Luis Pelaez Inc/Blend Image/Blend Images/Corbis
How Do Millennial Finances Compare To Previous Generations by Erica Quinn
While Canadians freak out over avocado toast and housing prices, let’s see what’s happening with Millennials in the United States.