Pay Yourself First


Pay Yourself First

The National Association of Real Estate Brokers (NAREB) recently released its 2024 State of Housing in Black America Report, shedding light on a troubling yet unsurprising reality: the gap between Black and White homeownership has widened since 1970. This disparity is not just a statistic—it represents a significant loss of wealth within Black communities, including here in the Greater Chicagoland area.

The reasons behind this decline are numerous and complex, but regardless of the causes, one truth remains—we must take actionable steps to improve our financial standing and build generational wealth within our communities.

In recent years, the term "generational wealth" has become a buzzword, frequently mentioned but rarely understood in depth. Many recognize that wealth is tied to money, but few grasp the fundamental processes required to transform income into lasting financial security for future generations.

Like any long journey, the path to generational wealth begins with a single step. One of the most crucial principles to embrace is simple yet powerful: stop buying what you want and begging for what you need. In other words, "pay yourself first."

Consider these questions when evaluating your spending habits:

•    Do we really need to subscribe to every streaming service?

•    Do we really need to buy designer brands?

•    Do we really need expensive, high-maintenance beauty treatments?

•    Do we really need to eat out multiple times a week?

If these questions prompt you to examine your spending habits, then you are already on the right path. The money saved from small but consistent changes can be redirected toward investments, property ownership, savings, and wealth-building opportunities for future generations.

As the old saying goes, "Watch your pennies, and your dollars will take care of themselves." The time to start is now—build habits today that will lay the foundation for a financially secure tomorrow. Pay yourself first!!!

Bye for now,

Bren



QUIZ:What is the name of the plan that businesses use to pass their assets on to the next generation?


Answer to last week’s quiz: If you are working and  you become disabled, long term disability insurance provides you with income protection during your working years.   Long-term care insurance pays for your care when you are no longer able to care for yourself.

Get a more detailed answer to last week’s QUIZ question or for any financial questions that you may have, please call me: 773-817-0601 or 773-819-1700

Disclaimer: The illustrations presented in this column are not, nor are they intended to be, legal, financial, or any other licensed professional advice, you should contact the licensed professional of your choice for advice on your individual situation.


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