African-Americans spend over $32 million annually on automobiles and over $27 billion annually on clothes and shoes. I recently read a Washington Post article written in February 2011 that stated 1 out of 4 African Americans indicated they owned stocks, bonds or mutual funds. Wow! Attention all Brothers! This needs to change!

According to an October 2017 article in the Washington Post, 1 in 7 white families are millionaires compared to 1 in 50 black families. During the past two decades, white families have significantly increased their wealth by investing in financial assets such as stocks, bonds, and retirement accounts. Their non-financial assets such as automobiles and real estate have also increased, but not as significantly as their financial assets.

So what should a good brother like you do? I recommend we all teach ourselves to become investors in stock and other similar assets. Why? There are many reasons but for the sake of brevity I will give you seven.

1. Investing in financial assets, (like stocks and retirement accounts) is one of the easiest ways to become a part owner in a business that you do not have to manage.
2. Purchasing a stock that pays a dividend, (or money periodically paid directly to the stock holder) is a great way to build passive income, (or money you earn with little or no effort).
3. The stock market “return on investments” (meaning the amount you gain compared to what you had to invest) has averaged about 10% since the 1920’s, (which is must better than what you will get from a Bank savings account).
4. Becoming a financial investor (a person that uses money to accumulate more money) is easier than ever because of the numerous online tools and other technology.
5. Investing in stock does not require a college degree, formal training, or a credit check (but some type of low cost investor training is highly recommended).
6. Becoming an investor can change the way you manage and allocate your money.
7. Investing can be fun if you put in the work and do the research!

According to Investopedia.com, if you had invested $100 in Amazon in 1997 during their initial public offering, your investment would be worth over $49,000 by October, 2017. Obviously this is not the case with all stocks but I believe your chances of getting a return on a $100 dollar investment is much better with stock than betting $100 on the lottery. Is there risk involved? Yes, absolutely. There is both a significant amount of risk and a strong possibility of losing money. But there is also a significant amount of risk in just about everything else we do in life.

So, I am praying for more brothers to start the process of learning to become savvy investors. If you are interested, I recommend you start by reading an article called “Getting Started in Stocks” on Investopedia.com. Do not purchase anything just yet! You should never purchase financial assets without getting more information from a financial seminar or workshop, or by seeking help from a financial professional or a financial mentor.

So what are you going to do with the next $100 dollars you have to spare? Should you buy the latest best-selling Nike shoes, or should you buy stock in Nike first, (and then buy the shoes later when they go on sale)? I think you should invest, because you are blessed! Finally brothers, please carefully consider the following Bible verse:

Proverbs 21:5 The plans of the diligent lead surely to plenty, But those of everyone who is hasty, surely to poverty.

About the author: Kelvin L. Solco is a motivational and inspirational speaker with over 22 years of management and executive leadership experience. He has a bachelor’s degree from an HBCU and a Master’s degree in Business Administration from a Christian University. Kelvin enjoys teaching leadership, career planning, aviation education, financial literacy and basic stock market investing in Churches, social organizations, schools, and small groups. Kelvin can also be booked to speak to groups in large or small events. For more information see his LinkedIn profile or contact him a KSolco@joinvictory.org. Kelvin is not a certified financial planner.