Four Ways You Can Reinvest In Black Communities Today

The instruction by Maggie Anderson, author of Our Black Year: One Family's Quest To Buy Black In America's Racially Divided Economy

1 Move to Make: Actually Invest.

Buy a life insurance plan from a Black agent and open a bank account/investment fund with a Black bank.

•Why It’s Important:

The power of investing and compound interest is well known. Let’s use this example from the U.S. Securities and Exchange Commission: If you saved $1 a day for a year and put that money in a savings account or investment that earns 5 percent a year, you would have $1,577.50 in 30 years.

•Positive Result:

Your family will be more financially secure. Plus, all the interest and fees accrued by the bank are reinvested into your community through business and home loans, and the increased access to local sound financial services.

2 Move to Make: Find Black Businesses That You’ll Use Frequently.

From grocery stores to accountants, patronize African-Americans offering services you regularly use.

•Why It’s Important:

Identifying companies that offer practical services will help bolster your commitment to using them, which creates more jobs in African-American communities.

•Positive Result:

According to a study published in Our Black Year, up to 1 million jobs could be created if Black households spent just $1 of every $10 on Black-owned businesses.

3 Move to Make: Stay at a Black-owned Hotel.

No excuses. Thanks to the National Association of Black Hotel Owners, Operators, and Developers, you can find Black-owned hotels in more than 30 states and one district nationwide.

•Why It’s Important:

U.S. companies spent more than $289 billion on just business travel in 2015, according to the Washington, D.C.-based Global Business Travelers Association: add personal trips, and the figure is even more astounding.

•Positive Result:

As Black-owned hotels thrive, owners and operators create more jobs and additional opportunities for ownership via mentorship.

4 Move to Make: Consider Entrepreneurship.

Interested in starting a business? Determine whether you want to own a smaller shop and be a “lifestyle entrepreneur” or a “high-growth entrepreneur” looking to build a middle-market firm.

•Why It’s Important:

Experts contend that midmarket firms bolster larger economies by creating hundreds to thousands of jobs, and small businesses help microeconomies by generating local employment. The Black community needs both.

•Positive Result:

Typically, lifestyle entrepreneurs grow their companies at 2 percent annually, and high-growth entrepreneurs grow at about 10 percent annually.

 

Source: EBONY

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