Truly Rich, An Insider's Guide to Building Financial and Emotional Wealth

02/27/2022

Do you have a green thumb? Are you getting excited about planting your garden this season? Here are three money-saving gardening tips that will help you keep a little more “green” in your wallet!

1. Start with seeds whenever you can! A packet of seeds that costs $1 - $3 goes much further than buying individual seedling plants at $3 - $5 per plant. This is especially true if you have a large garden!

2. Mulch to reduce watering. If you have a large garden and/or live in a dry climate, mulching can really save you money on your water bill. If you want to save money on the purchase of mulch, just use grass clippings from your mower! (Just make sure they are free from herbicides!)

3. Leverage your kitchen. You can compost with food scraps, nourish plants with coffee grounds, and repel pests naturally with citrus peels! When you boil or steam veggies or eggs, you can pour the cooled water over your plants to fertilize them.

02/25/2022

Are you dreaming of summer vacation? Or maybe you still have a chance to head off to somewhere lovely for spring break! Whatever your situation, it’s a good idea to have a vacation budget in place before you go. Here are some tips for effectively managing finances around your family vacation: (Credit to Abby Hayes and doughroller.net for some of these ideas!)

1. How much can you set aside in your monthly budget for your family vacation? Multiply that amount by the number of months between now and when you can take your vacation, and you’ve got your maximum vacation budget. If you are budgeting for multiple vacations, just divide the maximum amount accordingly.

2. Find a budget-friendly place to go. You can simply Google “best vacations under $2500” (or any dollar amount) and some great ideas will pop up. You can take it a step further and add the location you’re interested in to your keyword search.

3. Start big, but funnel down to small, with expense planning. Obviously, you will have your travel costs, accommodations, and potential transportation (if you’re renting a vehicle, etc.). Once you’ve identified those major expenses, turn to smaller expenses that will add up, including meals, entertainment, souvenirs, and so on. Here it’s also a good idea to throw in some planned miscellaneous expenses, as they will most certainly crop up.

4. When you’re on vacation, consider how you want to track your expenses. One option is to carry cash, maybe separated into envelopes by category, which is the surest way to not overspend. Along those lines, you might use a variety of payment methods, but use your budgeting app on a smartphone to track each of them daily and keep close tabs on what you’re actually spending. A third option is to use your credit card, but be careful to not let your credit limit decide for you what you’ll spend on vacation! Stick to your budget even when you’re whipping out the plastic.

It’s been a long, long two years of having to stay close to home, so I hope you will plan a great vacation for this year…I think we can all agree that we deserve some fun, relaxing time away!

02/24/2022

02/23/2022

According to the U.S. Census Bureau, there are only around 124,000 Black-owned businesses with more than one employee, which is only 2% of the nation’s closely-held businesses.

Entrepreneurs tend to be white and come from higher-income families. This is because capital is needed to start a business. For many entrepreneurs, capital is created through homeownership and family assets (which has a significant gap for black people).

A business that starts out well-funded is more likely to be successful and also more likely to receive additional capital. As a result, black entrepreneurs, on average, launch their businesses with $35,000 in startup capital and loans, versus an average of $107,000 for white entrepreneurs.

Additionally, capital for starting a business is often not obtained through traditional lending but through private funding and access to a robust network of wealth. As a result, access to capital is a major barrier to black entrepreneurship, which creates a conundrum, as black business owners are 20% less likely to fund their startups with bank business loans.

02/22/2022

How can Everyday People develop the habit of seeking expert advice?

The first step is to figure out what you need help with because there are many types of financial advice.

You may need the advice of an accountant or a tax preparer to help with lowering income taxes, reviewing property taxes, and making sure all available tax deductions are taken.

You might need an estate planning lawyer to ensure you are creating generational wealth for your family and your financial plan is not derailed at your death.

You may need an insurance broker to protect you from unexpected events as you build your wealth.

You may just want investment advice to get started investing or to help with your existing portfolio.

You may need all of these experts.

If you do not know what you need, I suggest starting with a financial planner whose job is to help create a personalized plan to manage your budget and achieve your financial goals.

A financial planner can then help you determine the additional expert advice you need and connect you to other appropriate experts.

The next step is to find the right person.

Here’s what I mean –>> nicoleperkins.com

02/21/2022

Here are few eye-opening data points about retirement savings:

— The majority of Americans aren’t saving enough for retirement, but minorities, in particular, are at greater risk for instability during retirement.

—On average, people of color in the U.S. have less saved for retirement than white people.

—More than half of black and Latinx households have no retirement savings, while only a third of white households lack savings.

—Racial pay gaps lend to black and Latinx workers having lower lifetime earnings and saving less.

—Black and Latinx workers are less likely to work for employers who offer retirement plans.

For these reasons, black people and people of color should pay particularly close attention to the following Critical Habits I share in Truly Rich: The importance of planning for retirement (Habit #6), and the importance of discussing money with family, trusted others, and experts (Habit 5, 7, and 9).

More investing tips —>> nicoleperkins.com

02/21/2022

Warren Buffet said, “Price is what you pay; value is what you get.”

I especially like this quote because it emphasizes the difference between cost and value. When you’re faced with a purchase decision, it’s always wisest to focus heavily on the value, even if it means spending a little (and sometimes a lot) more.

The reverse is also true, though. You may purchase something very inexpensively that will soon appreciate in value, such as stock or mutual funds.

02/17/2022

At the end of 2020, the homeownership rate for blacks was at 44%, versus 74% for whites. This is caused by many factors, including the disparity in income, lack of financial resources, and financial institution lending practices.

Lenders deny mortgages for black applicants at a rate 80% higher than that of white applicants. Additionally, by looking at data from the 2019 American Housing Survey (AHS), high-income black homeowners receive higher interest rates than low-income white homeowners. This is critical because the patterns of homeownership by age, race, and ethnicity are similar to wealth patterns.

02/15/2022

The way to get ahead is to start investing as early as humanly possible.

The earlier you can begin, the better off you will be.

The first step is learning more about investing.

With so many different options and access to investing available, investing for beginners can be easy and straightforward.

Once you understand the basics, the simplest way to start is to determine how much of your cash flow to invest and just do it.

More investing tips —>> nicoleperkins.com