The Signs You’re Carrying Far Too Much Debt

Two of the main focuses of my blog are Financial Literacy and Money. The following contributed post was written by Emma Morgan. It discusses The Signs You’re Carrying Far Too Much Debt.

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We live in a time of consumerism and most of us have a mindset of ‘I need it now’, which makes us impulsive when it comes to credit. The problem with credit, though, is that we can have whatever we want, and the consequences come later. While credit seems like a great idea in the moment, when you’ve got too much month at the end of your money and you can’t make your repayments, it becomes a big problem.

Debt is, for most people, a very unfortunate part of life. Buying a house, a car and even getting an education can put you into debt. While these are the debts you’d want to have, rather than because you couldn’t put the Manolo’s back at the store, it’s still not nice to have to deal with debt in that way. Having a house is a good thing, until you can’t make the mortgage repayments and you’re getting help from DoveBankruptcyLaw.com/chapter-13-bankruptcy to get you back on track. There are some signs, though, that can tell you whether you are carrying too much debt. It’s time to get your head out of the sand and start sorting out your finances, because they’re not going to sort themselves.

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1. The first sign you’re carrying too much debt is that this is where your money goes. You should have enough money to cover your mortgage, your bills and your savings before having a portion for disposable income. If your disposable income is covering the minimums on your loans and cards, there’s an issue. Working to pay debt is not living, and you need to start making some adjustments so that this is no longer the case for you.
2. The next sign is that you won’t ever pay off your debts early, because the money that you have can only cover the minimum payments. Get onto the creditors that you have and ask them to lower the repayment amounts for you. Creditors are not easy to deal with – in your head. In reality, if you have a good history, they’re usually more than happy to help you out. As long as they are getting paid, they will work with you and not against you.
3. Your health is important, but if the stress of debt is starting to manifest physically, you’re going to suffer. Your sleep, your happiness, the jumpy feeling you get when the doorbell goes? All of these things are not healthy, and they can be affected by debt.
4. Trying to get a consolidation loan to cover your debts is the move that most people make so that they can pay things off quickly. However, if you’re being turned down even for this, then you’ve got too much on your plate. The more debt you have, the harder it is to get credit.

It’s important to recognize when you are carrying too much debt as much as it is to know where to ask for help. Don’t suffer alone – get the debt help you need now to lessen the burden on your shoulders.

Seven Times You’ll Be Glad You Have An Emergency Fund

Two of the main focuses of my blog are Financial Literacy and Money. The following contributed post was written by Faye McDonald. It discusses the Seven Times You’ll Be Glad You Have An Emergency Fund.

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You can’t always predict what’s going to happen in life, but you can make your finances disaster-proof. The best way that you can do this is by having an emergency fund to back you up every step of the way. Ideally, you should already be managing your money each month and budgeting for savings, but you should also be paying into a separate savings account for emergency reasons. Obviously, you won’t be putting in the same amount each month because you need to be able to keep living the way that you want to live. However, there will be times you will be exceedingly grateful that you had an emergency fund to fall back on and below, you can find seven times in life you’ll be whispering thanks to yourself for your own forward thinking!


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Job Loss. It doesn’t matter how long you’ve been in your job, no one is safe from being made redundant or losing their job. Companies fold all the time due to tough economic times and you have to be prepared for this. Losing your job means that you will be behind financially, and your emergency fund can save you from that.

Divorce. There’s something horribly stressful about a broken marriage. Divorce is costly, and your emergency fund can back you up while you’re paying for lawyers.

Accident. Being in financial difficulty when you’ve had an accident is stress on top of stress. You can speak to Tenge Law Firm, LLC when you need to figure out if you are due compensation from your accident. There’s no need to get behind on bills if you don’t have to!

You Quit. Sometimes, you don’t lose your job due to the recession or the fact your company is folding. Personality clashes mean that you could find yourself out of work off your own volition and you decide to quit.

Disaster. You can’t control mother nature and she is a fearsome beast. An emergency fund can be there for you if you lose your home or are dealing with a flooded house after a disaster. You can incur costs when you go through a natural disaster, and your emergency fund can absorb those.

Supporting Spouses. If your other half is out of work suddenly, or takes ill, you are the main breadwinner. Your savings could keep you above water if your money isn’t enough to support the pair of you.

Widowed. If you find yourself in a situation where you are suddenly without a partner at all, and they have passed away, you will need to have your emergency fund supporting you through a funeral and the expenses incurred there.

You see, an emergency fund isn’t something that is an inconvenience. On the contrary, it will be there for you for when life becomes an inconvenience instead. Most of these situations happen to us in life, it’s important that you manage your own money and keep yourself safe at all times.

Should HBCUs teach their students financial literacy and about the business of higher education?

This piece was originally published on Dr. Matthew Lynch’s online publication The Edvocate back in May of 2015. It was entitled Thoughts on Why HBCUs could use more Alumni than Graduates, and Financial Literacy. I decided to republish this story after the new President of my alma mater, Johnson C. Smith University (JCSU), recently visited our Washington DC alumni chapter to discuss his vision for the university which is currently on probation due to financial distress.

A lack of alumni giving has long been a major issue for Historically Black Colleges and Universities (HBCUs). Something our new President Clarence Armbrister shared with us that I didn’t know, was that securing funding from Corporate America is difficult if alumni aren’t already giving significantly. Donors in fact inquire about alumni giving when deciding to give money themselves confounding the problem.

What’s at the heart of this conundrum? I think a major piece is that the concepts of wealth-building aren’t passed on in the ecosystems many HBCU students come from. When I say ‘ecosystems’ in this context, I’m referring to the environment the students have come from prior to matriculating into their particular schools – their home, their social circles, their church and the school system they’ve come from – in some instances where the goal is simply survival.

Coincidentally when you start studying money, a common theme you see is the importance of giving. Since many of these students are not receiving this information from wherever they come from, perhaps our HBCUs should consider planting these seeds in their student’s minds before they graduate – weaving it into their curricula somehow. After all, higher education is actually a business, and it isn’t free as someone somewhere has to pay for it.

In a previous post regarding the Tax Reform and Jobs Act, I discussed my alma mater being on probation, and challenged other HBCU alums to take some of the money they’ve received from their tax break and passing it on their alma maters – something which may have upset some readers. In this piece, I suggest that the HBCUs themselves should proactively arm their students with information which will not only empower them during their working lives, but also compel them to give support back to the places which gave them their start, allowing other kids to have similar opportunities.

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Being highly involved in the Washington DC Alumni Chapter for Johnson C. Smith University (JCSU), I’ve become keenly aware of the issues facing Historically Black Colleges and University (HBCUs). As an education advocate and writer, I’ve helped promote the “Quotes for Education” collaboration between Allstate and the Tom Joyner Foundation the last two years. In numerous interviews with Allstate’s Senior Vice-President and Florida A&M University alumnus Cheryl Harris, the importance of HBCU alumni giving back to their alma maters was stressed. In addition to the other pressures these institutions are facing, one of the more significant problems is the lack of alumni giving.

At an Executive Board meeting, our Chapter President Robert Ridley shared with us an idea he read stating that, “A graduate is someone who gets a degree from an institution and never looks back. An alumnus is someone who gives their time and money back to their alma mater.” This was an important distinction that I’d never heard before, not even when I was a student at JCSU. It’s an important concept that arguably should be introduced from day one at our HBCUs.

Why is it important for graduates to give back to their alma maters? The main reason is to give future generations a fighting chance to succeed. This is particularly important for Black America. Secondly, institutions of higher learning rely on state, federal and extramural funding from private donors. Many HBCU’s are “Land Grant” institutions and their funding has been decreased ironically under the Obama Administration, in addition to the tightening of the borrowing criteria for the “Parent Plus Loans” which many HBCU students and families heavily relied upon.  Thus donations from alumni have become more important.

As unofficially told by an insider, for the 2014 fiscal year, less than 14% of my class of 1999 gave anything back to JCSU, a staggeringly low number. When our school President Dr. Ronald Carter gave an overview of the current health of the University here in Washington, DC, he cited low alumni giving as one potential threat to the University’s future. A key piece of that evening was encouraging alumni to consider cutting back on certain luxuries to free up money to give back.

Why don’t HBCU Alums give more to their alma maters? Why would only 14% of my class give back to the University? One reason is that many students who’ve attended HBCUs feel as though they’ve given enough of their money to their alma mater when pursuing their educations, and don’t feel inclined to give anything else after graduating. Another reason is hard feelings towards one’s alma mater. Many graduates feel bitter about their experience for one reason or the other as well. I’ve heard this personally and read about it in other articles.

Another piece to this puzzle though is socioeconomic. Of the many curses to being born black in the United States, a key one is starting from lower rungs on the economic ladder than our counterparts of other ethnicities. If for example, your parents planned ahead and saved a college fund for you, your economic burden will likely be lessened or non-existent upon graduation as discussed by Georgette Miller, Esq. in Living Debt Free. You’ll have less debt and more disposable income (some to donate) after starting your career.

“They just weren’t thinking that way,” my father said in a discussion about my grandparents in a discussion about mortgages. I stumbled upon the basics of financial literacy by accident (from books like Rich Dad Poor Dad and The Millionaire Next Door), and wondered why my parents didn’t teach me more about the vital knowledge shared in these books. They didn’t know themselves and I think this is true for a lot of African American families in the United States.

Likewise, I hypothesize that many other college graduates from my community have a low level of financial literacy and that in part drives this lack of giving that we see from alumni towards their HBCUs. In other words, they know how to lavishly spend it, but not how to gradually save and grow it. If my hypothesis is true and many students are matriculating into our HBCUs with a low level of financial literacy, HBCU’s may do good to start educating their students on these topics from day one and also stressing that higher education is in fact a business. A good place to start would be Dave Ramsey’s Financial Peace University (FPU), or something similar.

I honestly didn’t seriously start giving to either of my alma maters until going through the FPU class taught at my church. In FPU, I learned that the greatest misunderstanding about money is that one of major keys to building and maintaining wealth is blessing others. Put another way, sustained financial health and giving are a function of one another, and in order for one to be able to give, one’s own financial house must first be in order.

Student loan debt can also help explain the lack of giving, but my suspicion is that there’s a percentage of graduates that once they get established, their finances aren’t situated so that they’re able to give back, or giving back just isn’t a priority. Coming from the African American community, there is truth to the myth that we as a community often collectively make poor financial decisions, particularly when ‘keeping up with the Joneses’, ‘signaling’, and trying to portray a certain image. For this reason, and because so many of us don’t get it at home, HBCUs once again may do good to expose their students to a financial literacy a curricula such as FPU which ultimately stresses sound financial decision making and ultimately charitable giving.

So why give back? Giving back to our alma maters, especially HBCUs is important if we want to see future generations grow and thrive. One of the keys to advancement of the African American community in the United States is financial stability as a group. Likewise the community itself has a responsibility to give its younger generations a fighting chance to participate in our new global economy. In the United States, economic power influences everything else. Regarding my own graduating class of 1999, we can do better than a 14% rate of participation in terms of giving back to our alma mater, as can graduates from other institutions.

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

What are your plans for your tax cut? Thought on what can be done with heavier paychecks and paying tax
Who will have the skills to benefit from Apple’s $350 investment?
Challenging stereotypes and misconceptions on household income and wealth building
We should’ve bought Facebook and Bitcoin stock: An investing story
Your net worth, your gross salary and what they mean
The difference between being cheap and frugal

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 the Big Words Blog Site Facebook page, Twitter at @BWArePowerful, and on Instagram at @anwaryusef76. While my main areas of focus are Education, STEM and Financial Literacy, there are other blogs/sites I endorse which can be found on that particular page of my site.

My personal experience with Dave Ramsey’s Debt Snowball revisited

“The rich rule over the poor, and the borrower is slave to the lender.” – Proverbs 22:7

One of the principles of my blog is the “Teaching of Wealth Building and Financial Literacy”. A key component of Financial Literacy is understanding debt – specifically what happens when you carry too much of it. I painfully learned what it’s like to carry exorbitant amounts of debt – a place I hope never to return to.

I got out of debt because some friends graciously shared Dave Ramsey’sFinancial Peace University” with me. While there are supporters of Financial Peace University and Dave’s “Debt Snowball”, I found that there are also detractors and critics. I wrote the following piece on the Examiner in early 2016 after someone else wrote an article about why she quit her Debt Snowball. I didn’t write this to rebut the author in a confrontational way or to discard her experience altogether, but instead to share an alternative perspective. By the way, to read about how to prolong your Debt Snowball, see my Mother’s Day 2017 blog post.

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Over the holiday season, an article appeared on my Twitter feed from another passionate Financial Literacy writer (there are many) titled; Why I Gave Up on Dave Ramsey’s Debt Snowball. Being a coordinator within the Financial Peace University ministry at the Alfred Street Baptist Church, and also in the final stages of my own Debt snowball, the article resonated with me and prompted the crafting of this piece. This piece won’t refute Jennifer Calonia’s experience, but will actually agree with some of her points and discuss my own experiences.

No one plans to go into crippling financial debt which usually occurs because of a lack of Financial Literacy; living above one’s means, or something else such as today’s soaring costs of higher education. Many people don’t understand what they’re doing and the long-term ramifications as was in my case. Roughly nine years were spent completing my Ph.D. and then the two and a half years of subsequent training – all on a taxable graduate stipend which ranged from $17,000-$22,000, and then a postdoctoral salary of $37,000. During that time, my expenses often exceeded my income for a number reasons. My old Saturn SL2 was bought with my father’s credit card. It was maintained using another credit card whose balance eventually ballooned to $8,500 (just paid off this month). An unhealthy relationship or two also contributed to the bonanza.

After starting my first real job in the Federal Government, my debt swelled at least two to three times due to wanting to learn to invest in real estate, and wanting to do too much too soon money-wise. It was a good idea but the trainings came at a steep price which in hindsight could’ve been obtained for less money. Those who gave those particular trainings dangerously encouraged us as students who didn’t have tens of thousands of dollars saved up, to use our credit cards, under the assumption that the costs of the classes would get paid off relatively easily once we some real estate deals were done (to be covered in depth in a later piece).

After accumulating my mound of debt, my life was blessed when two friends (from the same trainings) discovered and shared Dave Ramsey’s Financial Peace University (FPU). Just briefly, four of the key components of FPU – the cornerstones of Dave’s “Baby Steps” include:

• Saving an Emergency Fund – one month and then four to six months
• Learning how to budget
• Using cash instead of credit cards and debit cards
The Debt Snowball

The Debt Snowball is a strategy for eliminating debt. The individual lines up all of their debts smallest to largest, steadily paying them off one by one using the money from each paid off debt on the next one, steadily increasing the size of the payments on the larger ones until everything is paid off using “Gazelle Intensity” as Dave Ramsey calls it. Dave Ramsey uses the parable of the Gazelle who represents consumers who are preyed upon by the Cheetahs who represent credit card companies, banks and marketers.

Jennifer Calonia’s points are honestly all valid. My own Debt Snowball has taken two to three difficult years (and that’s without children), and it is easy to feel like quitting. Life continues to happen not just to you, but those around you – some of whom aren’t making good financial decisions and ultimately need your help – often unexpectedly. There is also the pull to do what others are doing – taking lavish vacations and acquiring luxury items for example. Finally, because you’re living on a fixed income when doing the debt snowball, some people may conclude that you’re “strapped” for cash which can be hurtful if you’re sensitive to the words of others.

These are all reasons why Ramsey discusses prayer when pursuing this effort (if that’s in your value system of course). From experience, when doing the Debt Snowball, one has to know that there are times when this financial plan can and must be altered temporarily – the holiday season for example. Furthermore, periodic rewards are realistically a good idea too (within reason). In other words, if you’re doing the Debt Snowball, you have to allow yourself some fun, or else you’ll stop it and never go back.

Much to my surprise, Dave Ramsey does have his detractors and critics as does every author/speaker/guru. There is for example a second method to paying down debts which involves paying down the highest interest rate obligations first. Some consider this more financially intelligent than the debt snowball which is powerful because of the ‘emotional’ effect of seeing the debts go away.

“We’re going to live like no one else, so later we can live like no one else,” Ramsey says frequently during frequently during FPU meaning that some sacrifices are initially involved, for greater gains and a comfortable life later on. Money is an emotional topic and as with most things, everyone has to make the best decisions for their own lives. Being on the cusp of completing my own debt snowball, it admittedly wasn’t easy, but if one can find a way to stick to it, it does work.

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

Chris Brown discusses true stewardship and financial peace
Your gross net worth, your gross salary and what they mean
The difference between being cheap and frugal
Mother’s Day 2017: One of my mother’s greatest gifts, getting engaged, and avoiding my own personal fiscal cliff
Father’s Day 2017: Reflections on some of Dad’s money and life lessons
We should’ve bought Facebook and Bitcoin stock: An investing and technology 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, or add the link to my RSS feed to your feedreader. Please visit my YouTube channel entitled, Big Discussions76. You can follow me on the Big Words Blog Site Facebook page, and Twitter at @BWArePowerful. Lastly, you can follow me on Instagram at @anwaryusef76. While my main areas of focus are Education, STEM and Financial Literacy, there are other blogs/sites I endorse which can be found on that particular page of my site.

Why SEO really is the key to a successful online business

Regardless of what your business is, or what your content is as a writer, it’s critical make your presence known and easy to find. The following guest post comes courtesy of Michael Kordvani. It discusses importance of Search Engine Optimization (SEO) for the success of online businesses. Michael Kordvani can be contacted at michaelkordvani@gmail.com.

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When it comes to search engine optimization (SEO), many are aware it’s something that’s supposed to help their online business but very few make time to learn anything about it or to even try. Many tell you they rely on word of mouth marketing or paid advertising that can take a chunk out of your business budget.

It’s a shame that SEO marketing is misunderstood and underused. SEO is a series of techniques designed to make your website easier for both search engines and your visitors to understand. Since search engines don’t see and understand your web pages the way a human can, SEO helps them ascertain what each page is about and why it’s useful to its users. Then it helps the search engines bring their users to you.

5 Ways SEO Helps Your Online Business Succeed

While there are many ways SEO can benefit your online business, here are five of the top ones.

More Clients: With so many websites available for any given product, service, or niche, getting clients can be a challenge. Using solid SEO techniques will improve your ranking in the search engines and make it easier to find. The easier your site is to find, the more potential customers you will receive. With the increased traffic, you will see more conversions.

Mobile Friendly: According to Hitwise, as much as 58% of all search engine queries are conducted on mobile devices and that number will continue to grow. How does SEO factor into that? An entirely new set of SEO techniques, like local search optimization, have been developed to help businesses get their products and services in front of the mobile audience. Choosing to ignore this particular trend is allowing your business to fall behind and out of the minds of today’s consumers.

Reputation Building: Reaching the first page of a search engine is quite an accomplishment and much more than something to brag about. Greater consumer trust is given to pages that are highly ranked. For many customers, if they can’t find a business on the first page of their Google search results, it’s not good enough. SEO boosts your website’s ranking in the search engines, gradually helping you move towards the top of users’ search results.

Brand Awareness: Another great benefit of SEO is that it lets your site appear on relevant pages of the search engines. As your ranking goes up, your site will appear more often at the top of user searches. That increases awareness among potential customers, more of them being aware of you means a higher conversion rate. Getting your SEO optimized content on social media channels too will also help increase your brand’s awareness and inspire consumer trust and loyalty.

Cost Effective: People are often afraid of investing in SEO because they don’t understand it. In educating yourself about the true power potential of SEO, you’ll see that such investment is much like investing in real estate. If you invest wisely in SEO, you get more from it. The remarkable thing is that a huge investment isn’t necessary and it’s very cost effective when compared to what you’d pay for PPC and social media marketing.

A Cryptocurrency App Case Study

The following guest post comes courtesy of Al Hill, Co-Founder of www.Tradingsim.com. It focuses on a case study for Cryptocurrency Apps – a topic related to my posts which discussed both Bitcoin and Blockchain Technology. While this post discusses Apps for financial transactions using Cryptocurrencies, it worth noting that the Big Words Blog Site is not involved in giving personal financial advice to readers and is not liable for any financial decisions made by readers. This post contains several infographics. Click on the images to enlarge them.

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Why do a case study on cryptocurrency apps? Well, it wasn’t up to me. There is just too much demand according to the number of searches from Google.

There are a lot of case studies on the web related to bitcoin and cryptocurrencies apps, so we wanted to do things slightly differently by defining a methodology to remove any inherit bias from the equation.

The study focused on 4 main factors on a normalized exponential scale of 1 to 100.

• Social Power
o Social power is a custom ranking metric we created by weighting the            numbers of followers across social networks: Facebook (45%), Twitter            (35%), and LinkedIn (20%)

• Total Number of Installs (provided only by the Google Play App Store)
• Total Number of Reviews
• Rating on the Google Play App Store (the IOS App Store only provides “4+”)

So, after inputting these data points into our algorithm, what did we come up with? An awesome top 10 list for you to explore!

The top graph depicts the overall rating based on our methodology. Now, if you are a true data geek like me, please have a look at the supporting numbers in the table below.

As you can see, the methodology did create some separation between the best in breed.

Blockchain is the clear technology leader providing a framework solving many business challenges, one of which is the cryptocurrency market, so the 100 rating was not a shocker.

Some of the other apps are news outlets or provide the ability to track the value of currencies, which won’t measure up in terms of value add against apps that allow you to buy cryptos or use them as a form of payment.

But what makes Coinbase so popular?

The real story with Coinbase is the large number of reviews for their app.

With the largest count of over 600k reviews, this was not by chance. Coinbase has a clear growth strategy focused on 4 pillars:

1. Create a simple retail exchange that allow consumers to invest in digital currency
2. Enable professional traders and institutions to trade digital currencies
3. Create an interface for people to make payments with digital currencies and developers to build applications that utilize this payment network
4. Simplify the development process and even invest in some partners that have awesome ideas

This approach creates evangelists that not only use Coinbase’s products, but also scream about them from the rooftops.

You of course will need to determine which app works best for your needs, but how people are sharing and using the application is likely a great measure.

To access the full case study, please visit: https://tradingsim.com/blog/crypto-apps-study/

Al Hill
Co-Founder, Tradingsim.com

The Best Apps for Crypto Investment

I am pleased to present my first guest post for the Big Words Blog Site. It comes courtesy of Michael Kordvani, the Head of Search Engine Optimization (SEO) of the App development agency Fueled, and it discusses the best Apps for ‘Cryptocurrency’ (Crypto) Investment – a topic related to two of my posts which discussed both Bitcoin and Blockchain Technology. While this post recommends the best Apps for financial transactions using cryptocurrencies, it is worth noting that the Big Words Blog Site is not involved in rendering personal financial advice to readers and is thus not liable for any financial decisions made by readers.

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There are now loads of different cryptocurrencies to invest in, but how do you keep track of all your investments, and the changes in the market?

No doubt you’ll want to use your smartphone to manage your crypto investments. While we’re not always in front of our PC, we’ve usually got our smartphone to hand, and when it comes to cryptocurrencies, things can change fast. Being able to access your investment data quickly, any time you like, wherever you are, is pretty much vital.

Blockchain development has been highly concentrated in the area of crypto investment apps, so you have plenty of choice when it comes to apps to use. Here’s our pick of some of the best apps for managing your crypto investments…

Coinbase

If you’re new to crypto investment, then Coinbase is a good choice as it’s very easy to use. Setting it up and then making sense of the information displayed is very simple. It’s very popular at the moment with more than 10 million customers using their system.

Gemini

Gemini is another popular choice, and currently benefits from slightly lower fees than Coinbase. This is an intuitive app with lots of reporting capabilities and some great graphs to help you make sense of all the information it presents.

Blockfolio

Blockfolio is particularly useful for anyone with a diverse portfolio. It’s a powerful tool that can seem complicated at first, but it’s well worth spending the time getting to grips with it if you’re dealing with a wide range of investments across several cryptocurrencies. Blockfolio tracks more than 800 different cryptocurrencies and sends push notifications to your smartphone when levels reach your predetermined threshold.

Investing.com Cryptocurrency

If you tend to trust apps from long established companies, then take a look at Investing.com Cryptocurrency. This company has been giving us investment advice for over 10 years now so it’s no surprise they’ve moved into the cryptocurrency market too. Through their app you can track 1300 different cryptocurrencies in real time, and you have the advantage of seeing historical data too. This app will also allow you to set alerts for when your goal price has been reached.

Bitcoin Wallet from BTC

This app from BTC is easy to use and is nicely designed to be simple yet efficient. It’s very secure and has reasonable transfer fees. It offers a good backup system, so you’ll never lose your data, and you can also transfer Bitcoin via QR reader. This app only deals with Bitcoin though, so if you’re investing in other altcoins, then you will probably want to look at our other recommended apps rather than this one.

Xapo Wallet

If security is top of your priority list when choosing a crypto investment app, then they don’t come much more secure than Xapo Wallet. The Wall Street Journal described their security as ‘the Fort Knox of cryptocurrency storage’. It gives you three layers of security and it’s also very easy to use with a smooth interface.

What are your plans for your tax cut? Thoughts on what can be done with heavier paychecks and paying less tax

Depending on your world view, this blog post may upset you, but it contains some ideas worth pondering. As they once told us at the Writer’s Center, if you’re not making someone uncomfortable, you’re not doing a good job of writing. This may also be my first blog post to incorporate all of the principles of my blog.

Our calendar year is marked by different seasons. Each year builds up to the excitement of the traditional ‘Holiday Season’ – Thanksgiving and Christmas. When the ball finally drops in Times Square, all of the excitement stops with the birth of new year. The holiday decorations and advertising goes away and ‘Tax’ season starts. It wasn’t until I became a working adult myself that I realized that Tax season was its own season, spanning through the Super Bowl, Black History Month, Valentine’s Day, March Madness; right up until Easter Sunday.

You start seeing advertisements on TV for franchises like ‘H&R Block’, and software like ‘Turbotax’. If you have one your tax preparer starts calling you for your annual appointment. You see people dressed up like the Statue of Liberty on street corners encouraging you to have your taxes done at franchises like Liberty Tax. If you’ve paid taxes, you start gathering your materials together to have your taxes done – your W-2 and other associated forms, your gift receipts, your mortgage interest deduction statement, etc.
Depending on your diligence, you either get them done early, or you procrastinate right up to the middle of April. It’s an exciting time, or a desperate one. Depending on how you’re living your life, the refund (if you get one) will propel you further ahead, or it will be gone as soon as you receive it.

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The 2018 tax season will be different than most in recent times in that many Americans will receive a tax cut, thanks to the recently passed ‘Tax Reform and Jobs Act’. Tremendous controversy surrounded the bill – specifically its beneficiaries. If you were 100% against the bill and are still convinced that it was written solely to help the wealthy, no discussion of the increased standard deductions or the adjusted tax brackets will sway how you feel. This is particularly true if you live in one of the high tax states like my native New York State, whose residents are losing the ability to write off some of their state taxes – taxes which are much higher than the other states.

I would highly encourage everyone to do their own research and not take what you hear on the major cable news networks as the gospel. For this post, I’ve done my own research and am citing projections from the Tax Policy Center of the Urban Institute and Brookings Institution which was last updated on December 22, 2017. The majority of the rancor and debate in the Main Stream Media (MSM) has centered around the wealthiest

Americans being the biggest beneficiaries of the law. That discussion leads us down the road of ‘Identity Politics’, ‘Fairness’, and varying perceptions of what’s right and wrong. It brings up President Barrack Obama’s position that, “Some Americans can afford to pay more taxes,” versus the other point of view which is that it’s wrong to excessively take money from those who have created it, or inherited it for unsustainable government spending.

My focus is on the potential benefits for individuals living on ‘Main Street’ and what they can do with a little more money in their pockets. I would encourage everyone else to do the same – ask yourselves what you can do to make your life and the lives around you better, as opposed to focusing on what others are getting. It’s tricky because its gets us into discussions about doing for self, and personal responsibility – difficult discussions, but important ones nonetheless.

The new law seems to have already encouraged companies like Apple to reinvest in the United States, but what are the effects of the Tax Reform and Jobs Act personally for people living on Main Street? First, how it affects your life will in large part depend on how you’re living your life in the here and now. Are you living ‘paycheck to paycheck’ or ‘hand to mouth’ as some would say? Are you living outside of your means? Are you riding a high level of debt? Do you have any emergency money? These questions will determine if you’re able to take any extra money you get back and build with it, or if it will get gobbled up right away.

According the Tax Policy Center’s report, one of the major changes in the bill is the increased Standard Deduction for single people and married couples – $6,500 to $13,000 for single people and $9,550 to $18,000 for married couples. For us on Main Street, this one change is going to either increase your refund, or decrease the amount of tax you owe – a win for most people. The tax brackets and associated percentages have also been adjusted. I was originally going to discuss the host of other changes and provisions, but I’ll just simply say that many of the other changes were made based upon the generous expansion of the Standard Deduction.

In addition to the changes in taxes at filing time which will be seen when filing in 2019 for the 2018 tax year, it appears there are going to be changes to Main Street’s paychecks in the near future. Kelly Phillips Erb of Forbes published an article on January 11, 2018 titled IRS Releases New 2018 Withholding Tables to Reflect Tax Law Changes. Based upon these changes which are to take effect in February, many Americans are going to get ‘raises’ due to changes in the amounts withheld. Many people are going to have extra money to spend.

This brings me back to the title of this blog post. What are your plans for your tax cut? As in my ‘Net Worth’ piece, this is a rhetorical question – one whose answers I wouldn’t recommend broadcasting. There are reasons for my asking this question. Do citizens on Main Street need some extra money at tax time and in their paychecks? The data in the next section suggest that they do.

* * *

About a month or so ago when the tax cut debate reached its crescendo, someone on Twitter shared an article entitled The shocking number of Americans who can’t cover a $400 expense, written by Ylan Q. Mui of the Washington Post. The article was published on May 25, 2016, and was based on a 2015 Report by the Federal Reserve which I’ve linked to this piece.

The article cited Figure 12 from the Federal Reserve’s report. Of the three groups surveyed, the group making less than $40,000 said they’d have the hardest time covering a $400 expense – overall less than 50%. The group making $40,000 to $100,000 had the second hardest time covering a $400 expense – overall 62%. As expected, the group making greater than $100,000 fared the best – overall 81% could cover a $400 emergency expense. That said it surprised me that someone making above $100,000 would have a hard time covering a $400 expense. By the way, the groups were broken down by race. Interestingly, black/non-Hispanics were the least likely of this $100,000 or greater group to be able to cover a $400 expense – 63% and Hispanics were close by at 67%.

The argument could be made that individuals making less than $40,000 just don’t make enough money to live off of, but what about those making above $40,000? The same is true for individuals making $100,000 or greater. This data suggests that either the United States has become too expensive a place in which to live, or that some people are mismanaging their finances. In both cases, it seems quite a few people could use the extra money. One could suggest that it’s unwise to not carry enough for a $400 emergency, but that’s dangerous because it gets us into discussions about personal accountability/responsibility, and self-reliance.

Rodney Brooks also of the Washington Post wrote an article entitled 71 percent of Americans aren’t saving enough for retirement. In the article he cited data from a national survey by Experion in collaboration with Get Rich Slowly stating that 71% of people surveyed said they didn’t have enough money to retire. Why would Americans not have enough retirement money? Mr. Brooks further cited data from the Consumer Financial Protection Bureau stating that among other things, the percentage of homeowners 65 and older with mortgage debt increased from 22% in 2001 to 30% in 2011. Among homeowners 75 and older, the rate more than doubled to 21.2% from 8.4%.

Furthermore, 49% of the people polled had credit card debt, and 46% had less savings than they expected to have five years earlier. Katie Ryan O’Connor, an editor from Get Rich Slowly, was cited in Mr. Brooks’ article stating that 71% of the people in the survey said they were not invested in the stock market, and 41% said that they had no plans to invest due to lack of funds. The data cited in these two articles suggest that some Americans could benefit from having some more money in their pockets. If you’re wary of investing money, a wise alternative may be to simply shove it under your mattress for an unforeseen emergency. Over the holiday season, a relative shared that simply getting, “rear-ended on the expressway,” causing a $500-dollar emergency would put many Americans in financial distress, so this seems to be real. By the way, a really good course for learning about the importance of emergency funds and the dangers of debt is Dave Ramsey’s Financial Peace University.

* * *

I’ve discussed a lack of money for $400 emergencies and retirement savings, but what else can one do with an increased standard deduction and a heavier paycheck? One alternative is to put something into the collection plate of charities, causes and institutions of your own personal interest that also need money. That can be anything, but I’m going someplace in particular with this.

Early on in President Trump’s first year, some Historically Black College and University (HBCU) Presidents bravely visited the White House, upsetting many alumni, students, and African Americans in general. Why did they go? The answer is simple. Their institutions, many of which are close to folding, needed money. Higher Education is a business – one which relies on funding from the Federal Government via grants and loan programs, in addition to gifts from private industry, and donations from generous and loyal alumni.

Three out of the four years I wrote for the Examiner, I interviewed Allstate’s Cheryl Harris about her company’s ‘Quotes for Education’ program in collaboration with Tom Joyner. What consistently came out of those interviews were discussions about anemic rates of giving by HBCU alumni – something that continues today. For my alma mater, Johnson C. Smith University (JCSU), we’ve experienced the same thing. In 2014, as the treasurer for our DC Alumni Chapter, I unofficially got wind that my class of 1999 had an 11% alumni giving rate. That is only 11% of the alumni from my class gave anything to the university that calendar year. It’s a strange phenomenon in that in 2018, HBCUs – those still open, are still very necessary in terms offering higher educations for students who can’t get them anywhere else.

Recently on December 6, 2017, Reginald Stuart of the online publication, Diverse Education, published an article entitled SACSCOC Places Johnson C. Smith University on Probation. The article discussed how the Southern Association of Colleges and Schools Commissions on Colleges (SACSCOC) placed my alma mater on a 12-month probation due to concerns about the long-term financial viability of the institution. The article stated that SACSCOC’s actions do not immediately impact the school’s accreditation, though a failure to correct the standards cited could lead to the university losing its accreditation and subsequently permanently shutting its doors. The article further stated that JCSU, in addition to Bennett College and St. Augustine’s University, are ‘tuition-dependent’, meaning that they enroll a high percentage of students who need federal financial aid to attend college.

Why would my alma mater and others like it have such low alumni giving rates? It’s a difficult discussion to have once again because it gets us back into personal responsibility. One explanation for the anemic HBCU alumni giving is indifference about the future crops of students. An alternative explanation is that perhaps many HBCU alumni simply don’t have enough money to give back to their alma maters. It thus again suggests that perhaps they could benefit from a tax cut like the one just passed. If you’re an HBCU alumni who will benefit from the Tax Reform and Jobs Act, regardless of how you feel about President Trump and the Republicans, a potential use for your new extra money in your paychecks could be a donation to your alma mater or an organization like the United Negro College Fund, which gives money to black students at both HBCUs and ‘Predominantly White Institutions’. But that’s up to you.

* * *

Clearly, there are a lot of people who can use extra money. How it’s used will depend on the individual. Will it be spent frivolously on a new pair of shoes and other depreciating items? Or will it be used for something long lasting like a down payment towards a house, retirement savings or donation to a charity? Consider the best way to use your gift from the Grand Old Party. Whose lives and community will it stabilize and enrich? Will it be your own? Or will it be someone else’s? Whose job is it to take care of you and your people? Is it yours or someone else’s? I touched upon this briefly towards the end of my blog post titled Challenging misconceptions and stereotypes in household income, wealth building, and privilege. And in closing, what are your plans for your tax cut? Again it’s a rhetorical question – one I wouldn’t necessarily broadcast. Instead, it’s something to think about.

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

Who will benefit from Apple’s $350 investment?
Challenging stereotypes and misconceptions in class, household income,  wealth, and privilege
We should’ve bought Facebook and Bitcoin stock: An investing story
Mother’s Day 2017: one of my mother’s greatest gifts, getting engaged, and avoiding my own personal fiscal cliff
Your gross salary, your net worth and what they mean
The difference between being cheap and frugal

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, or add the link to my RSS feed to your feedreader. Lastly follow me on the Big Words Blog Site Facebook page, Twitter at @BWArePowerful, and on Instagram at @anwaryusef76. While my main areas of focus are Education, STEM and Financial Literacy, there are other blogs/sites I endorse which can be found on that particular page of my site.

Who will have the skills to benefit from Apple’s $350 billion investment?

Two of the principles of my blog are “Creating Ecosystems of Success” and “Long-Term Thought”. While my scientific background is in the biomedical sciences Pharmacology and Toxicology, it’s imperative for me to keep my eyes on what’s happening in the other Science, Technology, Engineering and Mathematics (STEM)-fields. This allows me to use my platform to help guide others career-wise, and also for investment purposes (see my Facebook and Bitcoin post). In this post I want to discuss both STEM and careers, and the impacts of the new tax bill on the ‘Tech’ sector, as well as others.

My goal is to keep this post short. I actually have another post in the works regarding the new controversial ‘Tax Reform and Jobs Act’, but a recent development involving the company Apple prompted me to craft of this piece. I’ll start with a recent purchase involving one of the other ‘Four Horseman of Technology Stocks’, Amazon. Shortly after the holiday season, I ordered a copy of economist Dr. Thomas Sowell’s “Trickle Down” Theory and “Tax Cuts For The Rich”. I didn’t buy the book strictly because the Tax Cuts and Jobs Act was recently signed into law, but because I had an Amazon gift card and thought it would be an educational read. I’m also admittedly one of Dr. Sowell’s biggest fans as he embodies most of the principles of my blog. He empowers his readers with the economic laws and theories, and historical facts to interpret current events, government policies and political discussions with a more complete perspective, independent of your political affiliation or background.

The very short book discusses the famous ‘Trickle Down Theory’ which is a hotly debated topic among economists, media pundits, and politicians. Coincidentally, according to Dr. Sowell, it isn’t a formal economic law and never has been. Instead it is a term used to demonize any cutting of taxes which have historically sparked economic growth in our country, as opposed being a means of making the rich richer and ignoring the needs of those on ‘Main Street’ – the way tax cuts are typically depicted by their opposition. As expected, leading up to its passing, the Tax Reform and Jobs Act was accused of solely being a tax break for the wealthy by its opposition. Recently however, numerous sources are now reporting that it’s actually going to benefit people on Main Street as well. But what will the new law do for the national economy itself on a macro level? On January 17, 2018, Yahoo published an article titled Apple says it will invest $350 billion and hire 20,000 workers in the U.S. over the next five years.

While this is an opportunity for some to boast to the opposition that they had the bill all wrong, my focus is on who will benefit from Apple’s repatriation of its earnings, and its $350 billion investment in the United States. It seems to me that those who are trained in the technologies Apple is working on, and currently has in its pipeline, stand to benefit significantly in terms of career, earning potential, and upward mobility. Those skills may involve things like writing applications for ‘Blockchain Technology’, and/or ‘Quantum’ computers among others. Those who are not trained in those areas will only benefit from the products Apple produces, for the most part, solely as consumers.

As a STEM professional and advocate myself, this is a very appropriate time to discuss some data I recently found published by US News & World Report in 2016 titled Report: Black Students Underrepresented in High-Paying STEM Majors. The article cited data from a Georgetown University Study titled African Americans: Colleges Majors and Earnings, which discussed how black students tend to cluster in fields like social work leading to lower paying careers. The data in the Georgetown study showed that 20% of degree holders in human services and community organizing were black, and earned a median salary of about $40,000 per year. By contrast, only 7% of degree holders who received STEM-related bachelor’s degrees, and earned a median annual salary of $84,000 or more, were black – a very low number considering that blacks are only 12% of the total population in the United States.

This low percentage of participation in STEM, in addition to Apple’s repatriation of earnings, and its investment back into the United States, underscores the importance of having the necessary skill sets at critical times to take advantage of environmental changes imposed by laws like the Tax Reform and Jobs Act. Malcolm Gladwell covered this phenomenon extensively in Outliers. Right now in the United States there is considerable debate about discrepancies in wages based upon race and sex. The question has to be asked though, do those discrepancies exist due to discrimination, or is it majors chosen leading to the acquisition of skill sets for which there is high or low demand from the economy at that particular time? Are we essentially running up against the ‘Law of Supply and Demand’ as we often do? After all, the economy typically dictates what’s needed at a given time, and how much individuals in the workforce should be compensated.

How many more companies will return to the U.S. to repatriate their earnings, invest in research and development here in the U.S., and subsequently hire U.S. workers? Right now it’s unknown. But if other technology giants like Apple return, clearly some groups of people will benefit more than others. The question is will the beneficiaries strictly be based upon to race, sex and class, or will the skill sets possessed by certain well positioned individuals have something do with it? And who will possess those necessary skills once there is an increased demand for them?

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

A look at STEM: What is Pharmacology?
A look at STEM: What is Toxicology?
A look at STEM: What is ADME/Drug Metabolism?
A look at STEM: Blockchain Technology, a new way of conducting business and record keeping
• Challenging misconceptions and stereotypes in class, household income, wealth and privilege
Your net worth, your gross salary and what they mean

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. Lastly follow me on the Big Words Blog Site Facebook page, on  Twitter at @BWArePowerful, and on Instagram at @anwaryusef76. While my main areas of focus are Education, STEM and Financial Literacy, there are other blogs/sites I endorse which can be found on that particular page of my site.

Challenging misconceptions and stereotypes in class, household income, wealth and privilege

“It seems to me that in general white people are content to eat soup and sandwiches if it means buying a house. They don’t care as much about of having the latest fashions, and driving the fanciest cars!”

First of all, I hope the opening quote didn’t offend you. It was a part of an actual discussion with my father – one of many, and you’ll see its relevance later on. The first principle of my blog is “Creating Ecosystems of Success” which in short means showing others how to be successful, keeping in mind that what’s considered successful varies from person to person. The second piece I published on the Examiner titled, Challenging misconceptions and stereotypes in academic achievement, revisited one of my earliest lessons about academic success. In short, my father pointed out that academic success was merely a function of priorities and time invested, not the inherent ability or genetics of a particular race – something which helped me become a stronger student later on.

With two other principles of my blog being “The Teaching of Financial Literacy/Wealth Building”, and “Long-term thought”, I’ve crafted a similar piece discussing how our ideas and misconceptions shape our financial lives, and how we see the financial lives and privileges of other ethnic groups/races. Relatively recent data shows that while black families still have half the average median income/net worth of white families, Asian families seem to have caught up to those same white families and have even surpassed them. As a black man myself, I’ve wondered if Black-Americans should look around at all of the other ethnic groups in the United States, as opposed to solely focusing on White-Americans, in terms of financial success and all that comes with it.

* * *

“All of that state and federal money is going to those white folks. The black folks aren’t getting anything.” I’ve heard these and similar discussions frequently growing up during holiday dinners, and even today from my elders in my mother’s generation when discussing current events in my home city of Buffalo, N.Y. For some, Buffalo is a segregated, “non-progressive” city as described in the story of my blog, and it forever shaped the outlook of my mother and her peers.

Actually, many discussions with my father, who is from Harlem, were also peppered with broad brush discussions of “white people”, “them”, or “they” in unflattering ways – usually about the oppression of black people, and white people having unfair competitive advantages in life. The opening quote of this post was from a discussion he and I had about spending habits and race. Are my parents, grandparents, aunts, and uncles racists? No, I don’t think they think black people are superior to other races, but they did experience segregation and Jim Crow causing a residual level pain, a distrust of white people, and arguably some bigotry of their own. Yes, even if only to a small degree, I do think black people can also be bigoted.

In hindsight, we never discussed how or what Arabs, Asians, and Hispanics were doing – only white people. We knew that most of the stores in our neighborhoods were owned by other ethnic groups, but we mostly talked about the, “white folks.” It was a singular focus which compared black and white, mostly talking about black people being disadvantaged and powerless. It seldom, if ever, came up that there were multiple classes of black people – some which were winning in life, had been doing so for a long time, and had some privilege of their own.

There were, in fact, affluent and privileged black people, though my family didn’t affiliate with them much. It wasn’t until I went off to college that I started to see that there were alternate realities. Lawrence Otis Graham’s Our Kind of People: Inside America’s Black Upper-class periodically pops up in my writings. Highly criticized for celebrating America’s black upper-class, it was an important work for me personally because it let those of us who didn’t grow up in that class know that it existed – something as a black person you encounter and must reconcile in cities like Washington, DC, where I now reside. Some of these people were born into the upper class through generational wealth and inheritances, while others climbed there through digging in, sacrificing, and doing some things that other ethnic groups had done – things that were considered in some circles to be “white.” The children of these black families had privileges I didn’t have.

* * *

“The person who wrote this, are they white?” my godson asked me.

As described in my post titled, We should have bought Facebook and Bitcoin Stock, a mentor gave me a copy of the book How to Turn $100 into $1,000,000: Earn, Invest and Save. I started giving copies of the book to the younger people in my circle so that they could have a head start on some of the important concepts I only started learning in my late twenties – “Compounding Interest” for example, covered in Chapter 8. One of the lucky recipients was my godson.

I had just read a passage to him from the end of the book. The subsection was titled, “You made a million dollars? Great. Now Zip it”. The section warned against, “playing the high roller to impress people,” which could, “make you look like a fool” and, “invite theft.” I didn’t anticipate his question, but it was very telling about my godson’s world view – a teachable moment which I’ll return to with him in the future.

After asking him about his question, he told me that the passage I read to him sounded like a, “white way of thinking.” I first told him that it seemed that at 14 years of age, he’d started recognizing that there were differences in the value systems of different ethnic and racial groups – in this instance black people vs. white people. In terms of values, our people are known for frivolously spending their resources, flaunting their wares (many only depreciating) – signaling to one another as described by Dr. Boyce Watkins. I then cautioned my godson that not all white people are wealthy and that some were in fact poor. There were also some black people who were wealthy from things other than athletics and entertainment.

What was my godson growing up seeing in Prince Georges County, Md., the wealthiest black county in the United States? I’ll just say that earlier that day, I watched as many of the people at his house gushed over his blue and white Air Jordans – the ones with the shiny colored toes. They were enamored with name brand sneakers, clothing, and other symbols of money and perceived power – again many which only depreciate in value. I’ll stop there. In short, the values he was experiencing daily didn’t dictate keeping any material prosperity he would achieve quiet as it was a white way of thinking.

* * *

I first thought about Asian-American wealth last year when someone on Twitter shared an infographic stating that Asian-American wealth has steadily grown, while their voter participation had stagnated. The point of the tweet was that while Black-America has been one of the more vocal groups during elections, and in civil rights/social justice arenas, we haven’t significantly closed the wealth gap with White-America (as a group). The implication of the tweet was that black people as a group were focusing on the wrong things.

I found some interesting data in a report by the Pew Research Center titled On Views of Race and Inequality, Blacks and Whites are Worlds Apart. While the report mostly compared black people and white people, it also included some data on Asians and Hispanics. I’ll start with the figure titled “Whites are more likely than blacks to have a college degree”. It showed that 36% more white U.S. adults ages 25 and up had college degrees versus 23% of blacks in 2015. Interestingly 53% of Asians-Americans had college degrees – a greater number than whites.

A subsequent figure titled “Racial gaps in household income persist” showed that in 2015, blacks and Hispanics had median adjusted average household incomes of roughly $43,000. Whites had a median adjusted household income of $71,000, and surprisingly Asian-Americans had a median adjusted household income of $77,900. According to the report, Asian income has been on par or exceeded White income since 1987. Asian-Americans weren’t tracked in the report prior to 1987 so it’s not clear where exactly they started as a group. The gap between blacks and whites has steadily widened since the 1970s.

The figure titled “Blacks are twice as likely as whites to be poor, despite the narrowing of the poverty gap” showed that in 2014 the percentages of blacks and Hispanics in poverty was double that of whites and Asians. The next figure showed that whites have 13-times more wealth (net worth) than blacks in terms of household – $144,200 versus $11,200 for blacks. No data were presented on Asian-Americans. The figure titled “Homeownership is more common among whites than any other racial group” showed that whites led in homeownership, followed by Asians and then Hispanics and then blacks. Further data showed that blacks led in unemployment, versus the other three groups. Lastly blacks led in non-marital births, children under 18 living in single-parent households, and finally declining rates of marriage.

There was an interesting 2014 article from CNBC, written by Hailey Lee titled, How Asian- Americans are transforming the face of U.S. wealth. The article cited data from the Federal Reserve showing that Asian-American wealth had changed dramatically since 1989, growing to 70% of that of whites – $91,440 vs. $134,088. A subsection of the article titled “What came first: Wealth or education?” discussed whether or not the increased attainment of education could account for this gain in wealth.

The article stated that, “In 2013, 73% of Asians aged 35-39 held a degree beyond high school. That percentage was 54% for whites, 36% percent for blacks, and 23% for Hispanics. The disparities grow when looking at individuals with at least a four-year college degree: 65 % (Asian), 42 % (white), 26 % (black), and 16 % (Hispanic).”

In the section titled, “The wealth effect”, the article further stated that, “When Charles Emmons narrowed the data set to examine Asians younger than 62, both levels of median income and median wealth surpassed whites. This implies that younger Asians tend to be financially stronger than older Asians. And older Asians compared to their white counterparts, are weaker financially.”

“There’s a huge population of hardworking, educated Chinese who look to the U.S. for real estate investment,” said Elizabeth Schwartz in the Washington Post’s article titled Wealthy Chinese buyers are a growing force in U.S. real estate markets. “But they come to this market (New York City) not with money to just throw around, but rather to make informed, well-reasoned investment choices.” I looked up this article because I’d heard in recent years that there were lots of foreign investors buying up U.S. real estate in the aftermath of the great recession. One of the most prominent groups being Chinese Nationals whose average home price in 2015 was $831,800 compared with $499,600 for all other international buyers according to the Rosen Consulting Group.

* * *

So, what does all this data mean? First, as Black-Americans our measuring stick is often White- America, but the data out there suggest that the time has come to start looking around and tracking other ethnic groups, and inquiring about how they’ve gotten to where they are in such relatively short periods of time. In my hometown of Buffalo, N.Y for example, on the eastside where I grew up, none of the stores are owned by the black people who live there. The owners are from the Middle East, and they’re able to effectively run their businesses and coordinate with one another – all while growing steadily wealthier.

I didn’t know that Asian-Americans had made such strides in income/wealth. With all of the talk about white wealth and privilege, I thought whites would have been the leaders in these areas. As described in my Challenging Stereotypes and misconceptions post, Asians are perceived as an extremely hardworking group. Malcolm Gladwell dedicated a whole chapter to their work ethic in Outliers. Their attainment of college degrees in comparison to other ethnic groups is noteworthy, but it’s also important to consider what their degrees are in – probably the STEM fields.

They also seem to be very entrepreneurial, and I’m not speaking exclusively about their restaurants. Again, if you look in many black communities you also see an abundance of beauty supply and nail shops. Lastly their spending habits and marital rates are probably also important factors.

In closing, stereotypes and misconceptions are very dangerous in that they can enforce false narratives and world views. Those false narratives and views can lead whole groups of people in the wrong direction over long periods of time, setting them back for generations. Lastly, they can create false targets and goals to emulate and pursue – hence the power of political groups and the media.

Thank you for taking time out to read this blog post. If you’ve enjoyed this post, you might also enjoy:

Challenging misconceptions and stereotypes in academic achievement
Your net worth, gross salary, and what they mean
We should’ve bought Facebook and Bitcoin stock: An investing story
The differences between being cheap and frugal
Mother’s day 2017: One of my mother’s greatest gifts, getting engaged, and avoiding my own personal fiscal cliff
Father’s day 2017: Reflections on some of dad’s money and life lessons

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, or add the link to my RSS feed to your feedreader. Please visit my YouTube channel entitled, Big Discussions76. Lastly, follow me on Twitter at @BWArePowerful, on Instagram at @anwaryusef76, and at the Big Words Blog Site Facebook page. While my main areas of focus are Education, STEM and Financial Literacy, there are other blogs/sites I endorse which can be found on that particular page of my site.