Michael I-Zayah discusses new single release and the music industry

One of my goals for starting the Big Words Blog Site was to provide exposure for other talented individuals around me looking to launch their own unique endeavors.  One of my first interviews was with the Swamp Media Group, the creators of the Space Detective Movie, which has grown in international exposure.  Another up and coming artist is vocalist Michael I-Zayah who hails out of Atlanta, GA.  He has been working on perfecting his craft over the past several years and is looking to get signed by a music label sometime soon.  His latest single and video are titled, ‘New Panties’ (see the YouTube link below).  In this short interview, Michael I-Zayah talks about his background, his influences, his new single and his career goals.

Anwar Dunbar:  First of all, Michael, thank you for agreeing to do this interview.  We’re actually cousins and as such, I know how hard you’ve been working on your music career.  I’m honored to help you get exposure for your art.  For all artists and creators of things, exposure is definitely critical.  Now I may know who you are (laughing), but let’s start off by telling the readers a little bit about yourself and your background.  Where are you from and how did you decide to get involved in music?

Michael I-Zayah: I was raised in Atlanta, but I also represent Buff-City because much of my family is from there.  If anyone doesn’t know, that’s Buffalo, NY.

AD:  Do you go by the name Michael I-Zayah?  Or just by I-Zayah?

MI:  I go by Michael I-Zayah.  At one time I did go by just I-Zayah, but after dealing with so many stage names, I decided to go with Michael I-Zayah.  My middle name is Isaiah, like the prophet in the Bible, but I re-created it as “I-Zayah” because it has a unique look to it.

AD:  So you created this yourself and it’s spelled I-ZAYAH and sounds like Isaiah?

MI:  Yes.

AD:  That is very unique.  How did you get interested in music?

MI:  Ever since I was a kid I’ve always been interested in music.  When I was a baby, my mother would tell me that every time we were in the car listening to music, I would dance to it and move my head around.  I also always liked to play with my toy microphone, and I always had dreams of music and acting.  I was going through a lot of stuff in my teens and I just didn’t have the drive to pursue it, so I had to put it on hold.  Music and acting are my main passions.  That’s what I love to do.

AD:  So you’ve always been interested in the arts, and you’re in your mid-20s now.  Who are some of your influences?  Who did you listen to when you were coming up?

MI:  I listened to a lot of music from the 90s like Jodeci, Ginuwine, and Boyz II Men, just naming a few.  I can go on all day, but I just like to tell people that I was really influenced by the 90s R&B era.  It was my favorite time.  He’s not from the 90s, but I always get comparisons to Barry White because of my baritone voice, and to The Weekend because of my background melodies.

AD:  Yes, that was a great time for Hip Hop and R&B – one of my favorites too.  Much of today’s music sounds strange to me.  As I told you once, it took me a minute to catch on to Fetty Wap and appreciate his unique vocal sound.  Today’s stuff is cool when I’m out, but when I’m alone or at the gym working out, I usually go back to the 80s and 90s sounds, though it could be just because I have personal attachments to those eras similar to you and the 90s.

As an artist yourself, how would you describe the changes in Hip Hop and R&B from then to now?  Has it become more about making one hit?  Is it more for the club?  Has it become more about image?

MI:  You know what, I would say that it’s honestly all of the above.  I would also say that not all of the R&B music in this era is the same.  You have different sections and categories, and you have different sounds.  The younger generation of R&B is more popping now, but there are some artists who still turn out music like that from the 90s like Jodeci – they just released a record in 2015.

AD:  Do you like any of the music pre-1990 or that you heard you mother listening to?

MI:  My mother loved listening to Marvin Gaye, Chaka Khan, and Maze featuring Franky Beverly.  Some legendary heavy hitters I’d like to work with one day if I could, are Rodney ‘Darkchild’ Jerkins and Kenny ‘Babyface’ Edmonds.  Darkchild produced for groups like Destiny’s Child (Say My Name) and artists like Brandy and Monica (The Boy Is Mine).  I remember that prior to Babyface going solo, he was in the group ‘The Deele’; they made hits like ‘Two Occasions’ and ‘Sweet November’.  I’m also a fan of Barry White.

AD:  How would you describe your style?  Is it R&B, or would it be more like music for the club?  Talk about your musical style and genre.

MI:  That’s a good question because in terms of my style, I do R&B, R&B Soul and R&B Pop.  As far as my flavor, when people see me – how I dress and how I look, some people wonder if I’m a rapper and that’s not the case.  I do have an urban look, but I can also dress classy.

AD:  You just released a new single and it’s called ‘New Panties’.  When I first saw the image for the single, I wasn’t sure if this was good for the brand I’m trying to build (laughing), but when I heard the song and saw the video I thought it was pretty hot.  It’s a track that I can envision nodding my head to slowly while sipping a drink at happy hour at a club or a lounge like The Park at 14th here in DC on a Friday evening.  You can keep playing it over and over again and start feeling nice.  It definitely has a modern sound to it in terms of the way you’re delivering the lyrics rhythmically and the sound of the beat – the keyboards in the background and the drum beat.  It’s also very sexual (laughing), so exotic dancers could also use it.  What’s it about and where did it come from?

MI:  Well honestly (laughing), that was my songwriter’s story, and I want to send a shout to Carlos, aka Mr. Nine Dimensional.  He was telling me about an incident that he and some other people had experienced.  He had it stuck in his head and he told me about it.  So we tried to figure out how we could make it into a song.  In terms of the hook, we talked a lot about how it should sound.  He told me what the words were and I worked on coming up with the rhythm, added some more stuff in there and voila – it turned into the song and the rest is history.

To see the “New Panties” video, click the following link:

AD:  Who created the track – the instrumental you’re singing over?

MI:  It was a producer named DK and I’d like to send a shout out to him as well.  He’s an up and coming producer and he created the beat.

AD:  Have you guys approached any DJs or nightclub promoters about putting it in rotation during an event?  If not, you definitely should.

MI:   It’s been played at clubs and events, and I’m going to try to get it on the radio very soon.

AD:  So you have a video to go with the single as well.  How many singles  have you released?

MI:  I have three tracks.  My initial goal is to have at least three to six tracks.  All of them are going to have a unique sound and flavor.  Besides DK, I’m also working with Four Front Beats – shout out to them.  I’m working with BricksDaMane.  I’m also working with Frank Bank who is a producer, an artist and a CEO from California – shout out to him.  I want to send a shout out to Tony Sway.  BricksDaMane has a lot of heavy connections in the music business and industry.  I’ve known him since 2013 and I found out that he either produced or engineered Drake’s last album.  He also produced or engineered one of Young Thug’s projects.  These are the people I’ve been working with and producing my singles with.

AD:  So what are the next steps for your career?  What can we expect next from Michael I-Zayah?

MI:  You can expect to watch me grow, to go through my journey – the good and the bad times.  Lord knows I’ve been going through a lot when it comes to my music career, and I’m literally now just getting things back on track.  I’m going to be getting my name back out there, doing performances, going to radio stations, talking to the media, magazines, etc.  I have a lot going on and God is blessing me so I’m just trying to stay focused.

AD:  Where can people go and find some more of your music?

MI:  Well, I have some of my older music.  People can find it on YouTube or on SoundCloud.  I want to show people the type of work that I’ve done in my past compared to now.  What people don’t know is that even though I do Hip Hop, I’m transitioning more over to R&B.  I feel like I have a lot more to offer on that side.  It’s not that I can’t make music with my hip hop, but a lot of people haven’t seen me do R&B and I want to show people that side of me.

AD:  So when you say Hip Hop do you mean working with rappers or doing more club tracks?

MI:  I’m just referring to when I did some rap in the past.

AD:  Okay, yes.  I remember that when you first started you were rapping.  Okay, Michael, what have you learned about the music industry so far since being in it?

MI:  Wow (laughing).  What I’ve learned – what I’ve learned is that there are pros and cons to the music industry.  People have to realize that there is a difference between the Music Industry and the Music Business.  The Music Industry can be very cut throat.  A lot of people can have ulterior motives to get what they want out of you and as soon as they’re done, they don’t want to deal with you anymore.  A lot of people only care about themselves, and if it’s not all about them then they don’t care.  For me personally, I’d rather just stay in my lane and mind my business and just worry about me.  I feel like whoever I have a genuine connection to in the business and the industry, then it’s cool, and that’ll be a blessing.  All you have is you at the end of the day.

AD:  So the last question is how can the readers and listeners purchase “New Panties” if they want a copy of the track for their collection?  And in terms of social media, how can they connect with you?  You’re on Facebook, Instagram, and Twitter.  Are you on any other Social Media?

MI:  They can download my track on iTunes, Amazon or Google Play.  In terms of Social Media, I have all of those.  I have Snapchat, Tumblr, YouTube, Linkedin – I have a whole bunch of social media sites where people can reach out and find me.

AD:  Okay, I’m not as familiar with Sound Cloud.  Is that something people can just go to and type your name in, and your music will come up?

MI:  Yes, I’m on SoundCloud too.  Oh by the way, I want to say that I was in BET’s The Quad and Oprah’s Greenleaf both as a casting extra.

AD:  Okay that’s all I’ve got.  Thank you for talking about your new single and your budding career.  As you pump out more material, perhaps we can do some future update pieces.

MI:  Okay, cool.

Thank you for taking the time to read this interview.  If you want to hear more of Michael I-Zayah’s music, look him up as described above.  If you liked this interview, please share it and or leave a comment. Interested in making like Michael I-Zayah and taking off in the music industry yourself? Well, it’s time to start gaining some exposure. Upload your music onto Soundcloud and get involved with real soundcloud promotion. This can help to increase the plays on your tracks and get the ball rolling towards recognition and success!

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Simone Griffin of HomeFree-USA discusses homeownership and the African American community part two

This article is a continuation of my interview with Simone Griffin of HomeFree-USA regarding homeownership and the African American community.  In part one, Simone discussed the inception of her organization HomeFree-USA, and why homeownership is critical to the African American community in the United States.  In part two, we discuss some of the historic and recent impediments to black homeownership, some of the things our youth can start learning at an early age regarding Financial Literacy, and finally the effect of the Housing Market Boom/Crash on African American wealth.

Anwar Dunbar:  You touched upon this earlier when you discussed disparities in income, but what are the other main impediments holding African Americans back as a group in terms of homeownership?

Simone Griffin:  There are a couple of different things.  Number one, lenders aren’t as open to lending to people with lower credit scores.  Because they’re over-correcting after the housing crisis, they prefer to lend to people with a 750 credit score or higher.  Many black people don’t have that, but it doesn’t mean that we can’t pay our mortgages.  They simply may not have learned the importance of credit and how to manage it.  And it has nothing to do with your education status – they don’t teach personal finance in college, and are just beginning to do so in high schools.

AD:  No, they don’t.

SG:  If your family doesn’t know anything about credit and you don’t learn about it in school, then how could you be prepared with a 750 or greater score?

AD:  Yes, that’s a very good point.

SG:  A big difference between us and non-Hispanic whites is that between the Great Depression and the 1960s when America was building its wealth, black people were locked out due “Redlining” and other discriminatory tactics.  The Fair Housing and Fair Credit Laws were enacted in the late 1960s and early 1970s, which made it illegal to discriminate against people of color.  The problem was, when we tried to buy homes we were expected to make a 20% down payment, and many black people simply didn’t have that type of money. So when home appreciation soared during the 1970s and 1980s, many moderate income black people were unable to buy, which further crippled their ability to build wealth.  Many are still trying to catch up, and it’s 2017!

Meanwhile there are other ethnic groups who have money saved and may be able to give their kids a leg up.  Their kids may have student loan debt, but they can help them pay down their debt faster, or with a down payment on a house.  Mostly though, we’re starting over with every generation.  There are still many first generation college students in our communities – and college is a big indicator of how much more money you’ll make throughout your career.  So we’re still playing catch up to a degree.  This is why HomeFree-USA is so important, because you need that type of knowledge and access to get ahead.

Likewise, we’re positioned to tell the mortgage industry, ‘You say you want diversity, and want to lend to all kinds of people, but your 750 credit score requirement is locking black people out – black people who really could qualify.’  We’re not suggesting they throw a mortgage product out there and tell everyone they’re eligible. We never did that.  There were so many people we met with during the housing boom and said, ‘You should not be buying right now.’  But there were certain things they could do to improve their position, and we’re here to guide them through the corrections.

What’s important is a level of education to the borrower and to the lender.  The lender needs to understand what the borrowers are dealing with right now – what black people are dealing with.  We may have excess student loans, but if you look at non-traditional sources of credit, you will see that these borrowers are typically paying their rent on time for example, something that’s rarely reported to the credit bureau.  Cell phone and utility bills are also not always reported.

Many African Americans are unbanked or under-banked and we’re not used to working with the traditional lenders.  But that doesn’t mean that we’re not paying our bills, and these are the kinds of things that we’re communicating to the lenders.

AD:  I help teach the Dave Ramsey Financial Peace University Ministry at the Alfred Street Baptist Church.  As I’ve gone through as a student and a group leader, I think about the things that I was taught home (and not taught).  My mother says that she taught us about mortgages, but I don’t remember getting any of that – or I was just too caught up in the distractions of being a young adult.  Is there an age that’s too early for our kids to start learning this stuff?  Ideally how early should our kids be getting these things?

SG: I think you can start early, but age appropriately.  The sooner someone can start working and making their own money, that’s a big thing.  But in the interim just teach kids about giving, saving and spending, and allow them to hold their own money.  Kids for example, may know that money comes out of an ATM but they don’t understand what goes into making the money.  They may ask, ‘Can we get this?’, and you might reply, ‘No it’s not in the budget,’ allowing you to go into an understanding of what the budget is.

My friend has a nine-year old son who is in love with Pokémon cards and always asks her to buy them so he can trade them in school.  The problem is, he has no concept of how much the cards cost.  I suggested she give him an allotment of money every month for the cards, and once he spends it, it’s gone and that’s it. When it’s his money, as opposed to asking her to spend her money, it will change the level of focus he has on the purchase and care of the cards.

AD:  Earlier you talked about African Americans not having access to homeownership when other groups did from post the Depression era to the 1960s.  How did the 2008 Housing Market Crash affect African American homeownership since we were already playing catch up and were just getting into the game?

SG:  It obliterated our wealth.  One big mistake African Americans made is that we looked at our houses as investments.  We would buy a house, but not put any money into savings or other investment vehicles.  In the 1960s, 70s and 80s, our parents and grandparents had pensions, but most companies have replaced those with 401k plans, which they may not contribute to.  We now have to be conscientious about our entire financial life, including retirement.

When the housing crisis hit, it wasn’t all our fault.  Some people were truly led astray, and there were certainly many people who shouldn’t have been approved for such large mortgages.  I lived in Atlanta during the crisis, and the city was hit brutally by the crisis.  I met so many older people whose houses were paid off, and somebody at their church convinced them to get a Reverse Mortgage, which needlessly got them back into debt.  They didn’t even know what they were signing.  There were so many scams going on in Georgia at that time, including one where people thought they were signing up for one mortgage payment, only to find that there was a carbon copy of the real mortgage document underneath the original one, which required them to pay a far higher monthly payment.

Buyers were often blamed and told they bought too much house.  No, some of these people did their best to buy affordably, but were led astray – another reason why HomeFree-USA is so important.  If you’re working with us, we teach you the questions to ask your loan officer, realtor, inspector and appraiser.

During the housing boom loan officers were saying, ‘Oh, I can get you qualified for a $400,000 house even though you only make $40,000.’   Couple that with an agent who says, ‘I see you’re qualified for $400,000. Let me show you a house that’s worth $450,000 and we can negotiate down to $400, 000,’ and it ends up finally being around $425,000.  You say to yourself, ‘It’s fine because my loan officer says I can pay $500 every month.  So, today your payments may be an affordable $500 a month, which makes you feel comfortable in using your credit cards to pay for your new furniture. But five years later you receive a letter stating that you owe $20,000, due within 30 days. After the 30 days and $20,000, your new mortgage payment will be $5,000 per month. This actually happened to several people.  The homebuyers were either completely unaware of the balloon loan, or were told by their loan officer that they could simply refinance.  But the housing market crashed and they now owed more than their house was worth, meaning they were stuck.

This is why I avoid thinking of a home as an investment.  It can go down in value, especially at the beginning of your mortgage before you’ve built any equity.  We go financially awry when we make our house our only real investment without understanding that you have to diversify your portfolio.

This interview will continue in part three of Simone Griffin of HomeFree-USA discusses Homeownership and the African American Community.  To read some more of Simone’s financial writings, visit her blog at www.moneymagnet.homefreeusa.org.  She can also be contacted directly at moneymagnet@homefreeusa.org.

Thank you for taking the time to read this interview. If you enjoyed it, you might also enjoy:

Simone Griffin of HomeFree-USA discusses homeownership and the African American community part one
Simone Griffin of HomeFree-USA discusses homeownership and the African American community part three
Your net worth, your gross salary and what they mean
The difference between being cheap and frugal
We should bought Facebook and Bitcoin stock: An investing story
Challenging misconceptions and stereotypes in class, household income, wealth and privilege

If you’ve found value here and think it would benefit others, please share it and or leave a comment.  To receive all of the most up to date content from the Big Words Blog Site, subscribe using the subscription box in the right hand column in this post and throughout the site.  Please visit my YouTube channel entitled, Big Discussions76. Lastly follow me on Twitter at @BWArePowerful, on Instagram at @anwaryusef76 and a the Big Words Blog Site Facebook page.  While my main areas of focus are Education, STEM and Financial Literacy, there are other blogs/site I endorse which be found on that particular page of my site.

Your Net Worth, Your Gross Salary, and What They Mean

“The interesting thing about one’s net worth is that it can’t be negotiated with one’s employer.”

Note.  The subject matter of this blog post is not new.  It has been known for years by those who learned about it in their families, or who have discovered it on their own.  It’s simply a discussion from my personal perspective which I think is worth visiting.  The pictures displayed throughout this post are from the eastside of my hometown of Buffalo, NY.  My first money lessons started there – a lot of what not to do, and they capture the essence of some of the money challenges facing my brothers and sisters in my hometown and across the country.

Money Lessons From Your Family

Life is literally a lottery and regardless of your color or nationality, one of its immutable truths is that you can’t control the family you were born into.  You can’t control the parents you are born to, which likewise dictate the privileges and advantages you have access to.  We often think of privilege in terms of black and white (White Privilege), but there are also black families that have privileges over other black families.  The family you are born into in large part guides your start in life, the information, and the values that will dictate your early life choices – good or bad, though they don’t necessarily shape all that comes afterwards – a good thing for some.

Neither of my parents talked about what a Net Worth was when I was growing up.  As described in the Big Words Blog Site Story, my mother and her siblings were first generation college students – descendants of parents who were a part of the Great Migration.  My father’s situation was similar.  They were children of the Civil Rights Era, and thus the big goal for them was earning college degrees and then securing stable jobs on equal footing with their white peers.  That for them was winning and it was also a surpassing of their elders.  For those of us born from their generation (Generation X), going to college was also expected, but what would be the next level for us?  What was winning for our generation?

One’s Gross Income Vs. Their Net Worth

These days I have a lot of discussions with via text messaging with my brother Amahl, and three close friends from Hutch-Tech High School in Buffalo, NY: the twins Alim and Raheem Gaines and our other buddy, Hestin Brown.  All week long we discuss topics including sports, politics, and some of the silly stuff we see in the media, on Black Twitter and on Facebook.  We discuss social issues as well, particularly as they relate to the black community.  We’re a “Black Male’s Support Group”, or even our own little “Think Tank”.  Recently in a group dialogue that started out with a controversy regarding Tyrese Gibson’s spouse and whether she was actually black, something else much more important came up, the concept of one’s net worth.

Alim cited something he heard about listing what black men in the United States earn in terms of average gross income.  I responded wondering what the breakdown was for black women and Alim on cue cited the 2010 study by Mariko Chang describing Black and Hispanic women having average net worths of only $100 and $120.  I quickly pointed out that there was a difference between one’s gross income and their net worth.  My brother, the eldest in our group, asked what a net worth was.  For perspective, we’re all just above the age of 40.  Alim and I both knew the answer and gave it.  I shared that I was first introduced to the term in my late 20s, but didn’t completely grasp it until my mid-30s – very, very late in the game.  I pondered the fact that my brother still hadn’t grasped it yet – not a knock on him by any means, just our life’s circumstance.  I then wondered how our own life decisions would have been different had we known this important concept in our teens.

What Is Your Net Worth?

Just briefly, your net worth is the numerical difference between what you own and what you owe – your savings and your assets minus your debts and obligations (liabilities).  Your savings are self-explanatory – the amount of liquid cash you have available and can access quickly.  Assets can be anything from securities such as stocks, gold or silver, real estate investments, equity in your home, or profitable businesses.  If you’re an employee, a major contributor to your net worth is your retirement savings – that’s if you’ve been disciplined enough (and able) to steadily set money aside, which is something that the experts at Horan Wealth Estate Planning can help you with.  Debts/liabilities are self-explanatory as well.  Common forms of debt are: credit cards, car notes, mortgages, home equity lines of credit, loans against your retirement savings, etc.

I only started learning about what a net worth was in my late 20s, out of curiosity and chance.  Books like the Rich Dad Poor Dad talked about it, in addition to the Millionaire Next Door.  In Dave Ramsey’s Financial Peace University (FPU), the term is not explicitly addressed, but FPU’s ‘Baby Steps’ ultimately lead to a steadily increasing net worth.

A Metric Of Your Wealth

Okay, so what’s the big deal about this somewhat abstract and nebulous term that only few understand?  The answer is that your net worth is a metric of your wealth which is very, very different than your gross salary.  This is a critical distinction because a high gross salary doesn’t necessarily translate into a high net worth.  A person or a couple can have high gross salaries and still have a negative net worth(s).

In Black America we’re often enamored and impressed with individuals who make six figures.  Similar to one’s occupation, making six figures by itself can be deceptive.  You would assume that a medical doctor, a lawyer, or a news anchor would be very comfortable, but not necessarily – the same is true for someone who makes six figures.  Imagine if a person has a gross salary of $100,000 and their expenses are $95,000.  They’re still essentially broke right?  Beyond a certain point, your gross income is what Malcolm Gladwell in his book, Outliers, calls an ‘Entrance Criteria’ – an attribute that allows you entry into a club, though it isn’t a predictor of greatness.  ‘Excellence Criteria’ is what separates the great from the average and the underachievers.  These are the things that allow one to become wealthy in this case.

Contrary to the images we’re bombarded with in the media, the excellence criteria for building your net worth don’t necessarily involve a lavish and high consumption lifestyle, but instead being frugal and careful with one’s money.  Dr. Thomas Stanley wrote extensively about this in his Millionaire Next Door series.  This means that many people are chasing after the wrong things in life and not knowing it until it’s too late.

Increasing Or Decreasing Your Net Worth

What are some keys to growing your Net Worth?  Some of them include:

  • Budgeting one’s money and controlling costs – learning to run a surplus vs. a deficit;
  • Saving money gradually in an emergency fund, retirement and then potentially for investments and;
  • Carrying the least amount of debt possible.

What are some keys to keeping and maintaining a low/negative net worth?  Some of them include:

  • Spending more than you earn – spending everything you earn;
  • Not saving anything and;
  • Carrying large amounts of debt – particularly on the things that lose value or don’t justify borrowing the money – cars, sneakers, and degrees which don’t lead to well-paying jobs.

In his Rich Dad Poor Dad series, Robert Kiyosaki actually defines wealth as the amount of time one can go without working while still being able to cover expenses.

But what are the greater implications of growing your net worth and wealth?  They can position you to do things like build businesses.  They can be used to donate to charities, and to give other students, for example, the chance to go to school to better themselves – something sorely needed in Black America.  This is the importance of organizations like the United Negro College Fund for example.  They can be used to fund political candidates and campaigns, and have a true seat at the table when national and local policy decisions are made.  At the end of the day, politics is all about money right?

In Black America right now discussions, like the ones my buddies and I have, are actually taking place about the differences between having a high net worth and having a high salary – again two things which don’t necessarily correlate.  One gentleman on Twitter, a Nigerian I think, who regularly beats the net worth drum often rebutting people who think they’ve made it because they’ve attained a high gross salary and have luxury items like Mercedes Benzes and BMWs.  While these are prestigious toys, they gradually lose value and deceptively don’t translate into wealth.

Can You Negotiate Your Net Worth With Your Employer?

The interesting thing about one’s net worth is that it can’t be negotiated with one’s employer – it’s something that must be decided and acted upon by the individual once they understand it – like choosing to eat healthy or choosing to continue to eat an unhealthy diet.  It can’t be legislated or forced upon groups of people, nor should it be.  It’s a personal choice just like practicing a religion or choosing a spouse.  Speaking of which, I’ve read that judges actually consider a couple’s net worth during divorces and usually just split everything down the middle – a source of tension particularly when one of the spouses hasn’t earned the assets being split.

“Tasha and Ron are living large.  She’s a School Administrator and he’s a Fireman,” my mother said about couple in their 40s who are friends of the family.  She was looking at their professions and what she thought their salaries were and concluded that they were winning financially.

“Actually you don’t know that, Mom,” I said in reply.  “People can look like they’re making it on the outside, but without knowing their savings, their bills and their debts are, you don’t really know how they’re doing.”  My response echoed Robert Kiyosaki’s books where he stated that an individual’s financial success is actually dictated by their income statement and balance sheet – two things you can’t see by looking at someone – but things banks weight highly when qualifying individuals for mortgages or business loans.

What prevents individuals from growing their net worths?  Several things actually.  One is ignorance.  If no one ever tells you about it and you don’t stumble upon the information, you’ll never know.  Secondly, personal choices prevent one from doing it.  It takes discipline and drive, and many individuals lack those.  As a man, if you’ve recklessly had a bunch of kids and are bogged down with child support payments, you’ll probably never get there.

If you’re a single mother also with many kids, you’ll also have a hard time getting there as well.  It’s not impossible, just exponentially more difficult.  In one of his videos, Dr. Boyce Watkins stated that the average cost of a child is $250,000 up until it turns 18 years of age.  The other piece is that in some instances, particularly in Black America, only a handful of people in a given family get educated and earn a decent salary.  Those individuals are often looked upon to take care of everyone else – a potential, “Siphoning off of the wealth,” as Dr. Michael Eric Dyson said, partially joking, at the 2015 Congressional Black Caucus Annual Legislative Conference.  That day he was leading a Wealth-Building panel.

Who Can Become A High Net Worth Individual?

Growing a high net worth doesn’t necessarily involve going to get a Ph.D., an M.D., a Pharm D., or a J.D.  You actually don’t necessarily need a college degree to do it.  It simply requires a steady stream of income, understanding debt, and priorities.  This is what Dave Ramsey meant when he said, “Money is 20% knowledge and 80% behavior.” 

This is also one of the key principles in Robert Kiyosaki’s Cashflow game where players must choose their profession before playing.  One would think in the game that it would be easier to get out of the “Rat Race” by being one of the higher income professionals like the doctor, lawyer, or the airline pilot, but it’s actually easier as the web designer or the janitor.  While they generate less gross income, they also carry less debt and have fewer bills.  Their cost per child is also less than the higher income professionals.

Understanding what a net worth is and then making the decisions to grow it is a paradigm shift and a powerful one.  As with most things, we all have lives and everyone’s situations are unique.  We all have relatives and friends who may not necessarily understand the decisions and temporary sacrifices being made, and thus it’s important to know your own motivations – you have to know your ‘why’.

Concluding Thoughts

Again, a net worth is not a salary that you make every year.  It’s a result of spending habits and specific money choices.  How often should it be calculated?  One of my mentors told me that it should be calculated quarterly.  If you haven’t been paying attention to it, your initial assessment may not look pretty, but it gives you a place to start from – kind of like a doctor’s checkup.

So what’s your net worth?  Don’t answer that.  From experience, just like your gross income, it’s best if you keep it to yourself and only share it with a trusted few if anyone at all.  Money does different things to different people, and when people think you have it, it can do strange things to your relationships – your relatives and friends.

Thank you for taking the time to read this post. If you enjoyed this post, you might also enjoy:

The difference between being cheap and frugal
We should’ve bought Facebook and Bitcoin stock: An investing story
Challenging misconceptions and stereotypes in class, household income, wealth and privilege
What are your plans for your tax cut? Thoughts on what can be done with heavier paychecks and paying less tax
Who will have the skills to benefit from Apple’s $350 billion investment?
Mother’s Day 2017: One of my mother’s greatest gifts, getting engaged, and avoiding my own personal fiscal cliff

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