Will This Really Help You Make Money?

This started off as another “honey do” from my wife who wanted us to attend the Atlanta Millionaire’s Summit. First thing I did was call the number listed on their website and got a weird message stating something to the effect that “the number could not be accessed now, please call back.” Next thing I did was scrutinize the web site a bit more. It seemed to me that the material they were “teaching” is available for free at any public library. I also took pause that they made it seem like anyone could be a millionaire. Another problem I had was there were no real specifics on what I would learn for $75.00…A Choo! I mean $50.00 (they had cut the price in half). Needless to say, we didn’t go.

I must admit, I’m always skeptical when someone charges me a fee to tell me how rich their “secrets” will make me. Now, I’m not saying this event isn’t what it was billed to be, but before attending this or any other like it I would keep the following in mind:

1. Get your personal finances in order—first. That means no debt, money saved for a rainy day, and expendable cash (money you don’t mind loosing)—most businesses fail within the first three years. Generally speaking, you need enough money to feed you business and your family during that time.

2. Don’t do it for the money. Marsha Sinetar says, “do what you love and the money will follow.” True, if you like something it won’t seem like work and you’ll do it more often.

3. Realize that not everyone is meant to be a millionaire.

4. Beware of multi-level marketing, “get rich quick” schemes, or “new” and “novel” approaches to making money. They’re out there, but always ask; if they’re making money, why would they tell me?

5. Understand that this summit and others like it are sales events. Their main purpose is to get you to buy something, if nothing more than the ticket. If they impart useful information in the process, you’ve come out ahead.

6. Before attending this or any other sales event, put a limit on how much you will spend—no matter how good whatever it is sounds.

7. Be leery if you’re asked to make a commitment on the spot or before leaving the event.

Well, those are just my thoughts. Having said this, did any of you attend this event or another like it? If so, please tell me what you thought.

The Right Kind Of Education?

The civil rights organization Operation Hope just released the results of a study, the third of its kind, about African American students and their personal finances. The results are intriguing.

According to the article, Third Study Shows African American Students Consume More, Save Less:

When contrasted with the financial literacy of whites with the same incomes, the
highest income African Americans (those with family incomes above $80,000) had
financial literacy scores that were just 71.9 percent of whites. In contrast,
the lowest income African Americans had financial literacy scores that were 95.6
percent that of whites in the same income group. The report also revealed that
African American students are better spenders than savers.

In contrast to young white adults, African American high school seniors of
the same age are more likely to use credit and debit cards, are less likely to
have a bank account, and are less likely to work part-time or summers while they
are still in high school. This orientation toward consumption and away from
saving may help explain higher relative scores of African Americans on spending
rather than saving questions.

Several things jumped out at me. While high income African Americans had only 72 percent of the financial literacy of their white counterparts, low income African Americans had 95 percent of the financial literacy, or should I say illiteracy, as their lower income white counterparts. And, many of the African American "high-schoolers" did not work. The conclusions one can draw from this are many: (a) African Americans with good incomes who know a little something about managing their money need to know more, (b) knowing how to use your money means you're probably going to have more of it because you're going to keep more of it in YOUR pocket, (c) not knowing how to use your money will keep you poor--regardless of race, and (d) by not making our children earn what they want, we (African Americans) are not preparing our kids for the real world or the responsibilities of handling money. We are setting them up to be poor.

All of us want our kids to have the best education possible. Perhaps we should teach our children that character is "who we are" on the inside that shows outwardly in our decisions and actions--you don't wear it on your back. Next, we need to teach them the difference between needs and wants. And clearly, as this study by Operation Hope shows, it is important for us as black parents to learn all we can about personal finance and then teach those skills to our kids. Remember, many of us created our own financial crisis by buying way more house, car, clothes, hair, jewelry, holiday gifts, etc. than we need.

A final note - "Don't spend money you don't have trying to impress people who don't feed you."