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Becoming A Wealthy Black Woman

Today, only 42% of black people are homeowners compared to 73% of whites. When it comes to wealth, the net worth of homeowners consistently outpaces renters. Building wealth as a woman presents unique challenges due to the historical barriers that still leave us, on average, behind men. It can be even more challenging for Black women.

By Anna Paul, CFP®, Investment Adviser, Certified Financial Planner, and Money Coach at Snowball Wealth.


Here are ways to build wealth as a Black woman:

Change your mindset and become knowledgeable about money.


It’s easy to assume that being wealthy is some esoteric goal that only a few will ever reach, but that’s not true. One of the first steps to getting wealthy is to change your relationship with money. In order to change your relationship to money, you have to change the way you think about it.”


 

Keep debt and expenses low.


“High expenses and debt prohibit wealth. The more money you have to pay out each month for interest and basic living, the less you have to invest in assets that make more money. For this reason, I normally advise my clients to figure out what they need to live on and minimize how much is absolutely needed. This may seem restrictive, but it is quite the opposite. Low expenses and low debt mean freedom. As income rises, you have more money available to invest or use for your pleasure. If your expenses and personal debt are high, your income goes to covering the basics and repaying debt rather than enjoying life and investing.”



 

Invest in the stock market.


“Budgeting and being wise with money are the first steps to building wealth. However, history has shown that one of the greatest accelerators of wealth building is investing in the stock market. The power of compound interest can work for anyone and a key part of building wealth is investing. Saving money in an account making less than 1% isn’t going to lead you to great wealth. Stocks have some of the highest returns of any other asset class and high returns are essential to wealth. If you are uncomfortable investing, educate yourself and start with your retirement savings. If you work for a company, the odds are that you have access to a 401k, 403b, or another retirement plan.”



 

Anna Paul, CFP® currently serves as Money Coach at Snowball Wealth. Before joining Snowball Wealth, she worked as a financial planner as well as a financial education project manager delivering financial education sessions to Fortune 500 companies. She specializes in helping individuals identify financial goals and take actionable steps towards achieving them. When she isn’t giving financial education presentations, she can be found hiking, couponing, or trying new recipes.


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