Black Americans make up 13.6% of the total population. However, as of 2023, only 1.9% of all CFP professionals were certified Black.
These CFPs and other Black financial professionals want to share their knowledge in order to close the racial wealth divide and help more people of color save, plan, and invest. According to the St. Louis Federal Reserve in 2022, Black families had 25c for every $1 of white households in the second quarter.
We spoke to CFPs and other Black financial professionals about money management tips in the face of possible recessions, long-term job security and investing strategies for next year.
The responses have been edited to be more concise and clear. Below are the questions to learn more about each financial professional.
Are there smart money strategies you can make to avoid a recession?
Mandi Woodruff–Santos, co-host of Brown Ambition (and founder of MandiMoney Makers), says: “Focus only on what you can control. Not what you cannot.” It is impossible to control the economy, or whether your company cuts jobs. This can feel overwhelming. Instead, think about the things that will help your bounce back in the event of the worst.
“Ensure you have an emergency fund. There are tens of thousands already out of work in tech, and it’s not easy. This means that you may face stiff competition and a longer wait to get your next job. ”
Michelle Singletary (columnist at “The Color of Money”): A recession can cause job losses. To get through a job loss, you need to have cash on hand. You don’t have to fear losing your job, so now is the right time to get rid of all consumer debt. People who thought that their jobs were in danger during the pandemic did not lose their livelihood. You can weather a financial storm better if you don’t have a lot of debt. ”
Rianka R. Dosainvil, co-CEO at 2050 Wealth Partners: “With so many uncertainties around the economy and possible recession and continued layoffs. Right now, cash reigns supreme.”
The positive side to the Federal Reserve raising interest rate is that savers get rewarded for saving. The average high-yield savings account has a rate of 3.0%.
Are you concerned about job cuts?
Melissa Jean-Baptiste, co-founder of Millennial in Debt: “Create a virtual brag box. This will allow you to quantify the hard work that you have done and can be used as a differentiator if you are looking for a job in a new field.
“For side hustlers, make sure that there is minimal overhead so you don’t spend too much to start making money.
You should look at industries that are “recessionproof” if you want to ensure long-term job security. Although no job is perfect, there are some industries that can maintain high levels of productivity and profits even in difficult economic times. These industries are essential to society, regardless of the economic situation. Think of the roles that are available in sectors such as security, education, and health care. ”
Chelsea Ransom-Cooper, managing partner and director at Zenith Wealth Partners, said that “The best way to remain competitive in the job market” is to seek out additional opportunities to improve your skills through certifications. Even if your job is finished, you should be able to find a new opportunity quickly.
Chris Browning, creator and host of Popcorn Finance: “I think side gigs are great. My podcast started as a side venture — but it can be slow and hard to scale up to the point that one side job could replace your full-time income. Therefore, I believe in making the most out of your 9-to-5.
“Continually finding new ways to improve and expand my resume was one of the best things I did when trying to get promoted or find a new job. Join local organizations and take advantage of the training and workshops available. Connect with other departments to learn from them. LinkedIn is a great way to stay connected with people in your field. LinkedIn is a great way to keep in touch with others in your field. It’s a great way for you to be involved in your community and get noticed for potential opportunities that may not have been available. ”
What is your investment strategy in 2023?
Kevin L. Matthews II, bestselling author and founder at BuildingBread: “My investment strategy has remained the same over the last few years. I invest for the long-term, mostly in index funds. My age and my risk tolerance mean that around 85% of my funds are in stocks, compared to 15% in bonds and cash. ”
Ayesha Selden, certified financial planner, investor and author: “Keep your short-term and long-term goals in the forefront of investing. Avoid risky assets such as stocks and crypto if you only have a short-term goal, like buying a home or second home. If you are looking for long-term goals such as retirement planning or college planning for your children, I would be looking for opportunities in the market. I love to invest in distressed assets and would consider companies with significant stock losses. ”
Dominique Broadway, founder of Financial Education company Finances Demystified: “My investment strategy in 2023 is to buy stock in my favourite companies every month as many companies have the lowest prices ever.” I plan to trade three to four times per week. I also plan to expand my real estate portfolio in the coming year.
It’s a great idea to compare the short-term and long term benefits of different financial goals. This will allow you to decide what should be pursued now and what can wait.
Ransom-Cooper says: “My investment strategy is keep buying, and prioritize investing tax-advantaged account like a Roth IRA. It’s important to be focused on your time horizon when there’s market volatility. It is more important to invest in the market for a longer time than trying time the market. ”
Learn more about the influencers
Broadway is a financial literacy pioneer who aims to make wealth accessible for everyone. Her high-demand classes and easily accessible social media profiles have earned her the reputation of a personal finance expert who makes complicated financial topics trendy and understandable.
She is an award-winning speaker, personal finance expert, and founder of Finances Demystified, a financial education company. Her passion lies in working with entrepreneurs, young professionals, and all ages.
Browning is the host and creator of “Popcorn Finance”, an award-winning podcast that discusses finance in less than a minute. Browning has been featured on Forbes, The New York Times, The Los Angeles Times, and PBS. He also covers personal finance on NBCLX weekly.
Dorsainvil, a millennial CFP who has won numerous awards, is also co-founder/coCEO of 2050 Wealth Partners. She empowers entrepreneurs and wealth builders of the first generation to take control of their money and follow their dreams.
Jean-Baptiste is a first-generation Haitian American who paid off $102,000 of student loans using a teacher’s income. She is the creator of “Millennial in Debt”, a web series that teaches millennials how to build wealth, and achieve financial freedom.
Matthews is a best-selling author and the founder of BuildingBread. This education company helps first-time investors to confidently enter stock markets.
Ransom-Cooper, Zenith Wealth Partners’ managing partner and director for financial planning, is a certified financial advisor. She believes financial planners can help close the gap between racial and gender wealth. Therefore, she emphasizes forward-thinking strategies and simplified strategies to make financial planning accessible to everyone.
Selden is a certified financial advisor, licensed securities broker and author. She also invests. After completing her undergraduate degree in marketing and economics, Selden began a career as a financial planner. Her current role is that of a private wealth advisor, with clients in over a dozen different states. Although her office and staff is located in Philadelphia, Ayesha spends most time in Los Angeles.
Singletary is a Washington Post personal finance columnist. She is the author of “The Color of Money”, a personal finance column published twice a week in multiple newspapers throughout the country. She is also the author four books about personal finance, including “What to do with your money when crisis hits: A Survival Guide.”
Woodruff–Santos is a career coach, inclusive wealth-building advocate and co-host on the popular podcast “ Brownambition” Her personal finance and career advice have been featured on The Dr. Phil Show as well as CNBC, CNN, The New York Times, CNBC and CNN.