Stock holdings play an important role in the economic well-being of households. Stock funds, IRA and Keogh accounts as well as 401(k) and savings accounts were responsible for 28 percent of whites’ net worth, compared with 19 percent for blacks and 15 percent for Hispanics.
No matter what your race sex or creed, it is important to build your financial literacy by FREE websites like this one or with my more advanced website (aka BIO Forum) for less than 50 cents per day.
According to a recent Pew study, the housing boom of the early to mid-2000’s boosted the wealth of Hispanics in particular, who were disproportionately employed in the thriving construction industry. After reaching a median wealth of $18,359 in 2005, the wealth of Hispanics – who derived nearly two-thirds of their net worth from home equity – declined by 66 percent by 2009. Among blacks, who now have the highest unemployment rate at 16.2 percent, their household wealth fell 53 percent from $12,124 to $5,677.
In contrast, the median household wealth of whites dipped a modest 16 percent from $134,992 to $113,149, cushioned in part by a stock market recovery that began in mid-2009.
No matter what age or race or sex or creed you are, you NEED to save at least 3 dollars per day and spend 2 hours a week to improve your financial literacy so you can build financial independence for your family and start a tradition.
A 50 year old who was able to save 3 dollars a day since they were 18 years old and could compound that at 10% annually which almost all my subscribers achieve, would have over a quarter of a million dollars saved. If they continued for another 15 years until 65, they would have $1,146,870 which is remarkable for saving only 3 dollars per day, which any person can do and then invest that money in selected blue chip investments. Obviously, if you could save 6 dollars per day instead of 3 dollars that number would double to a half million dollars and almost 2.3 million dollars respectively.
It’s not what you make, but what you save and invest.
Here are some other census stats which should “scare you into saving”
About 35 percent of black households and 31 percent of Hispanic households had zero or negative net worth in 2009, compared with 15 percent of white households. In 2005, the comparable shares were 29 percent for blacks, 23 percent for Hispanics and 11 percent for whites.
Across all race and ethnic groups, the wealth gap between rich and poor widened. The share of wealth held by the top 10 percent of U.S. households increased from 49 percent in 2005 to 56 percent in 2009. The threshold for entry into the wealthiest top 10 percent, however, dipped lower: from $646,327 in 2005 to $598,435.
The simple act of saving and investing 3 dollars per day will put you in the top 10 percent by the time you are in your 50’s.
Folks, I understand various reasons why most people BELIEVE they can not achieve great wealth. But EVERY person could put a goal of saving 3 dollars per day and having the discipline to NEVER touch it to start a family tradition for your family.
I started out with nothing but a dream and parents who told me I was in control of my own destiny.
Many immigrants have come here without knowing the language or having any connections or specialized education and have reached financial freedom by saving more than they spend and then investing their savings.
This “system” is great because it is not “prejudiced” or Biased”. It works for everyone who practices it. It even worked for a “loud mouthed” guy like me with no previous financial education. Don’t give up your dream of financial independence. I know its possible because it happened to me.