It's that time again. Anxiously waiting for W-2s, 1099, 1098s and countless other tax forms. Every year I anticipate a substantial refund mainly because I count my daughter as a dependent, and am paying for my education myself. And just like last year and the year before I do the same thing with the refund: pay down debt, make special purchases and save. This year though, I've had an epiphany. Although I do not frivolously or excessively spend my tax return on nothingness, there is one smart decision I have neglected to follow through with: investing.
I've always been curious about investing. I've played with the idea in my mind and even spent a few mindless minutes pretending to read the ticker at the bottom of the screen when channel surfing. But my curiousity became fear when unrecognizable words like returns, yields, earnings and dividends. It seemed like unchartered territory. Worse, I didn't know whom to ask. No one ever spoke to me about investing, portfolios or the differences between stocks and bonds. The most money management I had growing up with was a class on how to write a check properly in the 7th grade. Good start? Absolutely. But beyond where to sign my name on a check is methods to make my money stretch for my lifetime--and my daughter's.
I read a recent an issue of Black Enterprise Magazine that stunned me. They hit me with statistics like how the black-white wealth gap quadrupuled in 2007. Meaning, the median wealth for a black family was $5,000 while it was $100,000 for white families. Now, you can take the statistic as trumped up, tainted, trash or what have you. The real issue for me personally is education. Because no one taught me, does that mean I repeat the same cycle and not teach my daughter? If I choose to do so. However, taking the time to educate myself only makes me a better steward over the child God blessed me with. So I'll start small. Subscribing to Black Enterprise magazine, creating an account with sharebuilder.com, taking advantage of the information presented on Yahoo! Finance, reading books on investing for beginners and seeking out others who are currently walking the path of financial wealth I hope to build.
The only way to build generational wealth is to start with my generation. As the old adage says, "Ignorance is bliss. But knowledge is power."
So, this tax time, I'm investing. No excuses, just choices...right? The first step is doing proper research. Give me your input! Has anyone had any experience with investing? Suggestions? Recommendations? I'd love to hear them!
"Do not despise these small beginnings, for the Lord rejoices to see the work begin." Zechariah 4:10
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