How to Build the Next Black Multi-Millionaires

Building on the Net/Max Fire Plus Strategy

(Florida) I still remember being told by other Black millennials that being “rich” was a pipe dream. After years of being indoctrinated with watching people flaunt money on luxury cars, large Mansions, and expensive fashion; it was easy to see how illogical my ideas of a normal happy life seemed.

Additionally, I air-quote rich because no one can seems to articulate the amount that defines being rich. As such that finish line keeps moving with inflation and consumerism.

The Depreciation of the Black Dollar

Turns out, you could make over $75,000 USD per year and be ultra wealthy retiring overseas. Or for the same amount, you can be a plebe in South California. The stratification of wealth and access is relative and wildly inconsistent. What’s worst is that the marker always seems to move once you get the next promotion.

A lot of us, first generation kids (first gen) grew up in South Floridian households that barely made over $40,000 of annual income. Most of that was reserved to a lucky few from dual income family. All of which translated to struggle life through the 80s and 90s.

Unfortunately, Black boys were relegated to athletics and rapping on the search of financial independence. While Black girls who often fared better scholastically, were pushed to focus on themselves vs depending on their counterparts.

Definitely a recipe for a natural disaster in the Black community.

In the end, Black women are the most educated subgroup while being the most indebted to said education and luxury. On the other hand, Black men are emotionally and psychologically stunted. Don’t believe me, tune into Club House on any given day.

For a lot of young black boys, those were the only role models

A legacy that you can still see today, in the amount of Black men that are either 1. Unemployable due to education, skill or discipline; 2. Unemployed due to industry shortfalls and a shrinking labor economy, or 3. Underemployed based on degree and debt attainment with no career or life direction.

If you think giving a Black men who have been poisoned mentally a 9-to-5 earning $48,000+ would cut it; let’s say you aren’t from the streets. This is a result of decades of neglect and trauma. Most Black Boys and Black men want what the media prescribed; social acceptance, the Alpha narrative when it comes to sex and plenty of it, and to be financial super wealth as a mark of open rebellion of their own past.

We aren’t allow to merely exist. Not without the trapping of wealth but always juxtapose to abject poverty. This entire pre-narrative is a perfect example why it’s not even easy for a Black Financial literacy blogger to just write.

Like many, what I had was a healthy dose of struggle

You ever been so bored that all that was left to do was to clean. Ever been so hungry that the next best thing was to fall asleep, so you can make it to school early enough for reduced or free breakfast. Weekends were filled with watching TV versus youth sports since they were either too expensive, or we couldn’t afford the insurance.

Summers and other Breaks were more the same. Most boys were hoping to come of legal working age so we can start to provide for ourselves. From that environment, I can understand why most blacks don’t think being wealthy is achievable. During those times, we were functionally unhealthy physically or mentally.

30 years later and several miles removed, my wife and I are setting off on the path to prove that the Impossible is merely Improbable. And if it’s improbable, it really means that there is a chance.

Already Millennial Millionaires

Suffice to say I was struggling back then. However, after with some education, a ton of street smarts (resourcefulness), and a whole lot of faith, I was fortunate to rewrite my past. As of April 2021, my wife and I became Half Millionaires with about $415,000 in investments that include 401ks, IRAs, Health Savings Accounts, and a new after-tax brokerage account through the M1 finance app.

If we stopped now and didn’t invest further, in 20 years we would be millionaires and set for retirement due to compounding interest, average market rate of return and Dividend Reinvestment aka DRIP.

As of 2021	5-Years	10-Years	20-Years	30-years
Starting Contributions of $400,000 @ 8.3% Historical Avg. Rate of Return	$596K	$888K	$1.97M	$4.37M
Starting Contributions of $400,000 @8.3% Historical Avg. Rate of Return with avg. $72,000 Annual Contributions	$1.04M	$1.99M	$5.5M	$13.3M
*Total Generated Interest	$277K	$866K	$3.66M	$10.76M

How did we do it?

There are multiple approaches to wealth but it typically boil down to increasing your income, decreasing your expenses, or basically luck like inheritances, lotteries, or special skills.

For most black people, inheritances are not in the pictures. The 2017 study was published in the Federal Reserve Bank of St. Louis Review highlighted the stark contrasts in black and white wealth. “Among college-educated black families, about 13 percent get an inheritance of more than $10,000, as opposed to about 41 percent of white.” For college-educated families that amount was a staggering $150,000+ for white family inheritances, versus under $40,000 for black family inheritances.

Special skills and life windfalls by virtual of being sand picked from the beach are too much of a long shot for them to be viable. This is why we see so many jumping at the chance to go viral or creating onlyfans accounts. Nothing stops a persons ingenuity if their will is stronger than their morality. So what’s left?

Black Financial Order of Operations

As an alternative, I devised the Net Max Financial Plan which uses a financial order of operations for black and brown millennials to make the most of what’s already in arms reach. The goal is for a family to bring in north of $82,000 aka the magic number, and work to invest as much as $60,000 annually. In the end, no matter how we crack it, it will help bring much needed stability to the black family and by proxy communities of color.

Why is this approach different?

Because it takes account the lived experiences of being Black without the luck factor. It basically states that most people can use steps to automatically pivot their lineage upward through the class structure.

What do I mean by class?

Class as a function of true happiness and thinking ahead vs merely spending on the fleeting moment of today out of fear. The goal is to establish a wealth mindset that centers people away from fear and non acceptance. Yeah, it’s really deep but simply it makes people rich.

How You Start Financially is Not How It Ends

Wealth building is the process of generating enduring financial security for your family.

For People of color, it’s a long road up the hill with a few boulder avalanches to contend with. America has made it lawful at times to purposely excluded Blacks from building wealth.

As a result, the median wealth of Black Americans will slated to fall to zero by 2053. Unfortunately, none of this is made easier with an absence of real Black wealth in representational media. 

Since I’m not a big fan of those odds, my wife and I have been working against them.

If someone says that it’s impossible, or that they can’t do it, Believe them. Do not waste one second trying to convince them otherwise. They are entitled 100% to their opinion and their way of life.

Level up by creating emotional, psychological, and even physical distance between you and them.

Why? For some reason, people’s cycles have the pesky side effect of syncing up. I bet ladies understood that reference. You are the sum of the average people around you. By reading this article, you are molding your own mind to be above average.

Based on the FIRE Calculator below, my wife and I will be able to retire with $5 Million Net worth but to be super conservative, I’m saying $3 Million. In 2.5 Years, we should hit the $1 Million mark.

Yearly Financial Independence and Retire Early (FIRE) Table

	Years Elapsed	Anticipated Annual Income	Estimated Annual Savings	Ending Net Worth
2020	0	N/A	N/A	$450,000
2021	1	$162,350	$119,850	$606,848
2022	2	$163,974	$121,474	$774,639
2023	3	$165,613	$123,113	$954,034
2024	4	$167,269	$124,769	$1,145,733
2025	5	$168,942	$126,442	$1,350,476
2026	6	$170,631	$128,131	$1,569,047
2027	7	$172,338	$129,838	$1,802,275
2028	8	$174,061	$131,561	$2,051,042
2029	9	$175,802	$133,302	$2,316,278
2030	10	$177,560	$135,060	$2,598,968
2031	11	$179,335	$136,835	$2,900,158
2032	12	$181,129	$138,629	$3,220,952
2033	13	$182,940	$140,440	$3,562,522
2034	14	$184,769	$142,269	$3,926,108
2035	15	$186,617	$144,117	$4,313,023
2036	16	$188,483	$145,983	$4,724,656
2037	17	$190,368	$147,868	$5,162,480
2038	18	$192,272	$149,772	$5,628,054

Seeing the Bright Light at the End of the Tunnel

For any give game, there are always rules and if there are rules; there are opportunities to win. What I didn’t say is that it would be easy or a piece of cake.

Generational wealth requires sacrifice. There is no way around that. Someone in your lineage had to make choices that would benefit the group over that one person’s wishes.

Additionally, that doesn’t mean that you can and will not have fun along the way. It’s merely up to you to use the difference between your income and your expenses.

That difference is an opportunity ratio.

You can pay off debts barring you don’t just replace them, invest barring you don’t through your money in high risk ventures, and you can multiply the life and future outcomes.

My wife and I know it’s hard. We know that your situation might be harder or even more difficult to see through the end. Just sharing that it can be done, might be what you need to see.

There were about Five cardinal rules as it relates to personal finances that I applied after I made my mistakes. Here’s hoping you make new mistakes and teach others.

So what’s next for us after retiring? Teaching others and Building communities.

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Jump Start Your Journey with a wealth of opportunities

1. Investing $1,500+ per month in M1 Finance Brokerage focused on Growth and Dividend Income that generates at least $2,500 in passive income in 2022. Check out the portfolio in real time. If you like the platform and want to start investing, I have the $20 for $20 referral if you need it – https://m1.finance/SYdqDJ2SyADC.
2. Shooting for a sustained investment rate with the push for $1,000,000 net worth. To help monitor your savings, cash flow, net worth, investments, retirement and more FREE with Personal Capital! Sign up with my link & get $20 Amazon gift card. *Terms apply. https://pcap.rocks/lawrencegonz
3. Build out Financial Literacy Workshops – Setting new goals and pushing the community forward.
4. Choose to constructively pay down credit card debts in 2021, rental mortgage by 2024, student loans by 2025, 2nd rental mortgage by 2027, and future main home by 2030.

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