YOU MADE IT!
But it does not mean they made it, too. It certainly does not mean you have to start carrying people on your newly "I-made-it raft" immediately. Yep, it is a raft until you learn to navigate and build it stronger into a yacht. And that takes time. I am not here to rain on your parade but to celebrate your success, help you better prepare for other financial milestones, and better manage the current milestone. Why? Because ready or not, more financial milestones will happen, and I want you to be more prepared than not.
Financial milestones are essential to our journey toward financial stability and for building and sustaining generational wealth. Whether it's buying a home, saving for your child's education, planning for retirement, or saving three to twelve months in your emergency fund, these milestones can shape your financial future. However, for Black families in America and worldwide, navigating these financial milestones can come with unique challenges. Historical disparities, systemic inequalities, and social factors can make achieving financial goals more complex. This post is geared toward preparing for common but major milestones we experience financially and offers tips on how to navigate them better.
Build Strong Foundations: Financial Education and Money Management
Before diving into specific financial milestones, starting with a strong foundation is crucial. Financial education is the first step toward making informed decisions. Many resources, workshops, and online courses are available to help Black individuals and families build their financial literacy. Local community organizations and non-profits often offer free or low-cost financial literacy programs, which can be a great starting point.
Although free is a good start, free information and education are not always enough. Let's start with the difference between financial literacy and financial capability. Financial literacy can be simply explained as "learning how to read," while financial capability can be boiled down to "confidently using what you know to make wiser and better financial decisions." In other words, financial capability is your self-efficacy to turn your financial literacy into action and results.
One way to do this is by investing in a financial coach or advisor. It is an investment that will hold you accountable, teach you new and better ways to manage your money, refresh your knowledge of personal finance, and give you other tools and help you create tailored systems to grow and manage your money and wealth.
Level up on navigating major financial milestones. Everything can't or shouldn't be free. As you achieve some milestones, it is better to pay for a service that will better prepare you for the financial milestones you are about to receive.
Homeownership: Overcoming Barriers
Homeownership is often considered a significant financial milestone. However, Black families have historically faced barriers in the housing market.
The debate between renting and owning a home is as old as time. There is no right or wrong choice because it is a personal decision to rent or own a home. When we all lay our heads on the pillow, we don't think of ownership; we thank God for having a roof over our heads and drift off to sleep. So don't rush into renting for a longer time than needed or rush to buy a home immediately after coming into some money. It is a personal decision, and here is how to navigate this milestone:
 Ask yourself why you want to rent or why you want to buy. Research and understand various mortgage options and down payment assistance programs. On the other side of the paper, write down and calculate renting costs, disadvantages, and advantages; do the same for buying a home.
 When you decide it is time, check your credit score to see if you are ready to buy a home. You can't work on your credit the year you want to buy; it takes time, and starting before you are ready is a smarter way to prepare for this milestone.
Have conversations with Black homeowners and Black realtors. Ask questions they, as Black people, can understand more deeply, help you demystify, bring clarity, and share tips with you. Take all that information, let it simmer, and decide what works for you.
Navigating major financial milestones takes work. Coming into money brings a euphoria that tricks you into thinking you've made it. If homeownership is your chosen path to building generational wealth, then go for it armed with knowledge (financial literacy) and confidence to act on that knowledge (financial capability).
Coming Into More Money (Assets)Â
Unfortunately, in more Black families than White, many come from homes where money or any kind of asset is scarce, insufficient, and extremely hard to obtain. This is not about laziness or lack of formal education; the truth most people (usually non-Black folks) forget to choose not to acknowledge is that there are dire hoops and systems intentionally put in place for Black individuals and families, making it very difficult to navigate and experience. Hence, when a Black individual or family comes in more money than their parents or anyone in the family has ever seen or could imagine, it can be debilitating if they are not prepared to handle that much money or if they don't seek advice and help in managing their new influx of cash.
Preparing for more money or salary increase milestones is one of the gifts you can give yourself. You don't have to wait to have more money to learn how to be better with your money. Start managing the "little" you have properly and create systems that can be repeated when more cash flow comes in. Some tips in this regard are having a lifestyle of budgeting, saving, and debt management. The keyword here is lifestyle. Get help learning how to tell your money what to do, where to go, and how to grow. Referring to the above point, invest in yourself and pay for help from a financial coach who will help you establish these lifestyles. DIY culture is strong and admirable, but it does not always yield better results, save you time or money, or give you the correct ways to follow.
Navigating major financial milestones as a Black individual or family may require extra effort and resources due to historical disparities and systemic inequalities. However, with the proper knowledge and strategies, overcoming these challenges and securing a brighter financial future is possible. Remember that financial education, careful planning, and seeking and paying for support from knowledgeable professionals can make all the difference. By taking proactive steps and remaining persistent, you can achieve your financial goals and build a legacy of financial stability for generations to come.
Decide to change the narrative for your future self and the generations that follow. You are welcome to work with me as your Financial Coach or research someone of your choice. As a Financial Coach, I approach this topic with empathy and acknowledge the diversity and complexity of financial situations across different Black and immigrant beliefs and communities. Like I tell my clients, I learned by fire, so you don't have to. Reach out, and let's work on a tailored financial plan focusing on budgeting, saving, and debt management.
It's small step with nothing to lose - Schedule a complimentary clarity call today
Be gentle with yourself,
Celestina
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