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5 Things Rich People Understand That Black People Don’t
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Feb 6, 2025
#money #blackexcellence #investing Investing your first $1K: https://www.youtube.com/watch?v=mqDuVYV26zg Become A Millionaire In This One (Almost) Guaranteed Way: https://www.youtube.com/watch?v=Nd_3I8sCCKc&t=584s Get your (financial) life together! If you're broke, maybe you haven't grasped ore or all of these five lessons from rich people. Subscribe to our channel so you don't miss any future videos! Check out the books we love and recommend in our Black Excellence Book Club: https://www.blackexcellence.com/store/ Some links are affiliate links, which means we earn a very tiny commission if you make a purchase. __________________________________________________________ Sharing interesting and noteworthy stories in Black culture. All content provided by Black Excellence Media, LLC is for entertainment purposes only. None of the information or advice provided is to replace professional advice.
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I already see you running to the
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comments right now to angry type are you
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saying there are no rich black people
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have you ever heard of Oprah Michael
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Jordan the Carters obviously when I say
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five things rich people understand that
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black people don't of course I'm not
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saying if you're black you're not rich
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if you watch my video about why black
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people are 13 times poorer then you
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understand I'm talking about us as a
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whole our community is not rich our
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community is very very behind
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financially a new year is upon us and my
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wish for you and for myself too is to be
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financially better every year than the
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year before and I'm making this video
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because in the next 4 years it looks
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like there won't be any reparations
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coming anytime soon we have to start
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taking care of ourselves and our
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financial well-being here's Five Lessons
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From the rich let's start with probably
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the most important thing that rich
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people understand that a lot of people
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in our community don't understand that
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is compound interests the magic trick
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rich people swear by actually they live
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by and search for every day of their
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lives is the ability for your money to
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make more money without you doing any
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work and then for that money to make
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even more money it's like putting your
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dollars on steroids except it's 100%
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legal here's how it works if you invest
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$110,000 at a 7% annual return in 10
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years you will have almost doubled your
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money to
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$1,672 that's doubling your money for
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not doing anything but if you leave that
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same money in your savings account at a
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0.1% interest you'll have earned earned
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in a decade enough to buy probably a
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large fries in McDonald's that's even a
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maybe and then there's a lot of people
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in our community they don't even trust
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the banks and still leave money under
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their mattress which gives you 0% and
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actually you're losing money due to
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inflation because your money is actually
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losing its purchasing power every single
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year the problem is only 34% of
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African-American households have any
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investments in retirement accounts
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compared to 60% of white households
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according to CNBC
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why the lack of education and investing
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and a fear of losing money but here's
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the thing doing nothing is a guaranteed
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way to lose we need to stop thinking
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that investing is for rich people you
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can start investing with as little as
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$10 but in order to take full advantage
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of compounding you need to start as
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early as possible starting at let's say
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25 and having 30 to 40 years to let your
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money make more money is so much more
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powerful compared to starting at 40 or
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50 and only having 10 to 20 years to
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grow money one of the richest people in
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the world Warren Buffett talks about
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this all the time all the time most of
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his money came from compounding and he
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started at such a young age and I'm just
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going to go ahead and say it it seems
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like to me and I understand I completely
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understand that so many of us in our
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community have a short mindset and
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hopefully I'm saying that right we think
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about the next year the next 6 months so
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every time I tell one of my friends
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about compound interest if I tell them
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well well you'll be rich in 30 years or
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you'll have this amount of money in 10
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years I don't know why it just doesn't
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make sense to them but that time is
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going to go by so quick watching your
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money grow especially after you get it
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to $100,000 you got to imagine you're
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making 10% on your money when you get to
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$100,000 so that's an extra $10,000 a
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year I think what Einstein called like
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the ninth wonder of the world maybe
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we'll put that quote up here what even
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boggled the mind of Einstein compound
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interest is something Community needs to
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learn as soon as possible now let's talk
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about keeping money in the community did
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you know that in the Jewish and Asian
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communities a dollar circulates for up
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to 30 days in Black communities the same
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dollar vanishes within six hours why you
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might ask because too often we're
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shopping at big box stores or on
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non-black owned businesses instead of
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supporting our own now I'm not saying
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you need to overhaul your entire
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spending overnight but imagine if we all
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made a conscious effort to buy black
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more often blackowned businesses would
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grow create jobs and funnel that money
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right back into our own neighborhoods
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apps like we buy black and official
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Black Wall Street make it easier to find
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black owned businesses you know another
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way to keep money in our own communities
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is investing with each other or joining
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investing clubs and number three
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avoiding the Trap of buying brand names
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I got to admit I've fallen for this trap
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and I don't know where it came from but
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somewhere growing up you just start
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falling in love with brand names and the
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effect that it has on other people I get
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it I understand I'm sure you've done it
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and I've done it we'll all stand in line
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for hours to buy the latest Jordans but
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we'll act like investing $200 in stocks
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is a scam I know we're not the only ones
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who love buying brand names but we might
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be the ones least qualified to be
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spending hundreds or thousands of
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dollars to get the brand names the truth
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is rich people don't care about looking
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Rich they care about being rich take
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Warren Buffett he's worth over a $100
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billion but he still drives a modest car
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I'm not saying that I would do that and
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eats at McDonald's obviously not the
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best diet in the world but the man is
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over 90 and still sharp in 2019 Nelson's
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reported that African-Americans spent
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over $1.6 trillion annually and a
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significant chunk of that was on luxury
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goods but guess what those Brands they
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don't give two craps about us and
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they're spending literally probably $5
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on the shirt that you're spending $2
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$300 on and of course those Brands
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obviously don't reinvest in our
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communities you think Louis Vuitton is
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building schools in the hood they're
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building more stores to sell you on
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overpriced bags and to be honest I don't
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even care if you buy any of this stuff I
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like luxury stuff but the thing that I
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wish I would have knew earlier on is
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just invest in Louis Vuitton first and
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then let them pay you and then use their
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money to go out and buy your Louis
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Vuitton or whatever luxury good you want
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after keeping money in the black
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community for at least a day or two I
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mean God dang 6 hours what the heck and
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number four understanding assets versus
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liabilities I was just teaching my
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99-year-old nephew this last week and he
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honestly understood this in less than 10
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minutes so let me break down this
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fundamental lesson the difference
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between assets and liabilities an asset
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puts money in your pocket a liability
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takes money out it's that simple but
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here's the problem many of us treat
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liabilities like assets for example
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we'll brag about owning a car but as
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soon as you drive it off the lot it
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loses value faster than ice cream melts
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in the sun meanwhile we hesitate to
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invest in our own businesses it's one
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thing to take a calculated risk and
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something else can completely to avoid
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it all together without even doing the
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research according to the Federal
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Reserve the median net worth of black
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households is
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$224,000 compared to
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88,000 for white households much of this
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disparity comes down to asset ownership
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rich people invest in things that grow
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in value real estate stocks and
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businesses while too many of us spend
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money on things that just don't make any
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money it's finally time to rethink what
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we as a community value instead of
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financing a new iPhone every year
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imagine putting that same ,000 into a
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Roth IRA I'll leave a link below where I
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talk about Roth IAS and number five
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giving back finally rich people
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understand the power of giving back
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again I know what you're thinking how
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can I give back when I barely have
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enough for myself but giving back
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doesn't have to mean writing million
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dooll checks like Oprah or Robert F
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Smith it can mean mentoring a young
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person volunteering your time or even
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just sharing what you've learned
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preferably in this video philanthropy
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creates a ripple effect when we invest
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in our communities we build
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opportunities for everyone look at
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historical black colleges and
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universities despite being underfunded
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they produce 40% of black engineers and
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50% of black doctors imagine what they
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could do with more support and giving
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back isn't just about charity it's about
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Legacy rich people give because they
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know it keeps their influence alive long
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after they're gone I mean really think
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about it would you rather be remembered
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for driving a luxury car or for
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uplifting an entire generation so there
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you have it five things rich people
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understand that we all need to embrace
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compound interest keeping money in the
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community avoiding brand name traps
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understanding assets and liabilities and
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last but not least giving back the truth
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is Building Wealth isn't about having
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money it's about having the right
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mindset we don't have to wait for
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someone else to save us and remember
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it's not about being perfect it's about
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making progress make sure to follow me
8:59
at directed by Jared on Instagram none
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of you guys are following me and make
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sure to like And subscribe leave a
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comment let me know what you think and
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I'm going to give a little bonus and
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really piss off some people that made it
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all the way to the end of this video at
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the present moment Bitcoin is almost at
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$100,000 and I couldn't stress enough
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that our
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community as a form of investing needs
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to stay away from this at all costs
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everyone I know at the moment is rushing
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back into Bitcoin but I will say this
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until I'm bleue in the face
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Bitcoin is not a form of investing
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because you cannot assess the value of
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what it will be in the future you have
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no idea if it's going to go from
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$100,000 to a million or back down to
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$10 no one knows I don't care what
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anybody says so as a community as a form
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of investing I want everybody to stay
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away from this if you want to gamble
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with some money that you have on the
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side and you don't mind losing go ahead
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and put it into Bitcoin I don't care if
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Trump's in office I don't care who's in
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office at the end of the day if you
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cannot assess like for instance for a
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house I know that in a neighborhood
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where houses are
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$500,000 if you sell me that house for
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$200,000 there's a good chance that I'm
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going to make money if this house is in
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decent shape cuz I can iness how much
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this house that I'm buying is worth
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compared doing the comps on the houses
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that are surrounding it that is
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investing okay if you're going to use
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that house to flip or do something and
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you can get it at a really good price
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and assess the value that is investing
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if you cannot assess how much Bitcoin
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should be worth you are gambling and
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that gamble can pay off just like going
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to Vegas and putting it on red or black
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you can put 500,000 in there you could
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say I made money and but you cannot call
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that investing cuz you can not assess
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the value of that bet so as a community
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I would love if black people as a form
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of investing or growing their money or
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with money that they need in the future
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stay away from Bitcoin or any of these
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coins that everybody's rushing back into
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instead invest in ETFs I've made videos
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about that maybe I'll leave a link below
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and then with spare money that you're
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like you know I have extra $2,000 or
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something and I have a net worth of
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$100,000 $200,000 I'm going to throw it
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in Bitcoin see if Jared's wrong maybe
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it'll grow into
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$10,000 in the future or if I lose it I
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don't care but leave your comments below
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I'll see you guys soon thanks again