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  #1  
Old October 8th, 2005, 10:37 AM
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kimsuccess kimsuccess is offline
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Angry Where is our African American Economic plan!?

I am posting here because I am fed up and I can't take it anymore!

Where is our African American Economic Plan? Where should it come from? Will any large group step up to the plate?

First I want to say a large group because these are supposed to be the "educated, people of means" in our community. I am not one to ask the masses because they spend their time trying to live day to day, scraping to get essentials and working 26 hours a day. I am talking to the people that have time to meet/hold conferences, take cruises, give speeches in addition to living and working in their daily lives. People like to say those on the lower economic rung wastes money on frivious stuff and I contend it is more of the middle and top rung that waste the most money.

For example, if I have 100 families that are making $150,000 or more and 100 families making $50,000 or less? Who has the most money to throw away? 15 million vs 5 million Who has the time and resources to set our people on a course of wealth and economic freedom? The $15million group or the $5million group! Also, I choose groups because YES an individual can make a change but a group effort is much more effective!

So here are a few groups:
The National Black MBA Association, is there a plan here? These are the top business minds of our community. They have the book knowledge of the components of the business and economic world. Many are working in corporate america so there is some experience.

The National Council of Negro Women have been meeting for 52 years. Would it come from a group of women that are the foundation of our society and families and include expertise from all walks of life. If a group this size just made a change, created a plan, would that not impact our communuty?

The National Black Child Development Insititute, would they create a plan that our children can learn to handle money which is the life blood of this country. They have been meeting for 35 years.

I don't know, maybe it is just me! We have these groups and hundreds more in place already that would be the best to get an economic, health, education plan for Black people started. Think of our nurses groups, physician groups, teachers groups, psychologist groups, journalist groups (starting a TV network) and others. My minister, pastor or community leader does not have the experitse in their fields like these professionals do. They can gather the people together but these groups have to create and implement the plans.

It may not be on their group agenda, but a group has to step up somewhere with the expertise and take us to the next level! Yes, I can accomplish this as an individual, but who is going to trust ME to tell them how to handle their money compared to a bankers group or financial planners group.

Thanks for listening! I am just fed up and I can't take it anymore!!!!
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  #2  
Old October 9th, 2005, 06:26 PM
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Quote:
Where is our African American Economic Plan? Where should it come from? Will any large group step up to the plate?
Hello Kimssuccess,

Economics is an interesting phenomenon. An economic plan is not something that we can easily do. We often speak about Black Economic Indicators, such as our spending power -- approximately $700 billion -- the percentage of African Americans who own homes, college educated, employed, unemployed, professionals, blue-collar workers, home values in our neighborhoods, entrepreneurs, assets of churches, organizational budgets of NAACP, Natonal Urban League, PUSH, 100 Black Men and Women, revenue and expenditures of Black Churches, value of non-retirement assets invested, etc. What a list! And there is more.

The sum of these activities-- and their impact -- constitutes our economic reality, The Black Economy. Typically, only Governments have enough power and control (and the ability to print money) to devise and execute an economic plan. No Black organization can significantly impact economic outcomes alone.

What we can do -- as individuals and organizations -- is make decisions that influence many of the indicators. We can invest; we can buy homes; we can choose to spend with Black-owned businesses. When we do these things as individuals and organizations, we have an impact on the Black economy. Even when an organization makes a decision, it is the actions of individuals -- to recycle dollars, to save with Black banks, to attend Black theater and restaruants, etc. -- that cause a measurable economic outcome. Organizations can influence individuals, and our activities constitute our economic impact.

iZania is trying to impact our economic reality by encouraging our members to advertise among ourselves, buy from member businesses, and network with other members to help influence our spending decisions, offer advice and share ideas about topics of economic interest -- starting a business, managing our finanices, investing, locating a business, developing professional skills, etc. When we do these things and transform them into economic transactions among ourselves, we begin to impact our Black economic reality.

Our contributions will be small -- at first. But we should continue to encourage others. You are correct to be fed up. Each one of us who can't take it anymore, should begin by sharing our economic actions in this post - What Black Businesses Do you patronize?.

Let us know how you are stepping up.

Amandla!
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Last edited by phillel : October 9th, 2005 at 07:29 PM.
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  #3  
Old October 9th, 2005, 11:30 PM
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kimsuccess kimsuccess is offline
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Thumbs up Re: Where is our African American Economic plan!?

Thank you for sharing the picture of our overall economic outlook.

Everything is connected and every decision has an effect. Buying from black businesses create jobs, which can lead to home ownership and investments, on to better community schools from the property taxes of those homes. This is a simplistic picture but effective.

Creating more wealth in our community starts with each of us becoming more financially educated and learning different ways to use money.

One action from one individual leads to overall economic changes....

Have a great day!
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  #4  
Old October 13th, 2005, 11:42 PM
thank30 thank30 is offline
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Wink Re: Where is our African American Economic plan!?

I too am frustrated with the lack of economic planning among African Americans. However, exists some simple, yet difficult steps that each individual can take that may facilitate African American economic plan. For example, through self assessment, I realize that my perception and behavior with respect to money and economics must consist of change. Eliminating credit card, school, car notes and other debt is the first step of becoming financially independent. We live in a society that promotes buying and consuming that is often above our financial ability. Our local, state, and federal government often maintains high deficits. There was a time when people saved up and payed cashed for items. Not anymore, credit card companies entice people to use debt.

In addition, I have realized that getting my family (wife, son, in-laws, sister, etc.) to a point of being debt free is a sufficient way contributing to an African American plan on a smaller scale. However, it begins with my behavior toward money, budgeting and spending. Improving the aforementioned will significantly increase the success of black business, if African Americans focus on being debt free. For example, instead of spending $375 every month for 4 years car note (WOW $18,000 not including interest), some of this money could have been budgeted to support a black business. This a simple concept, but difficult to stay on track. Just my thoughts.

Peace,

thank30
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  #5  
Old October 16th, 2005, 07:55 AM
reginald reginald is offline
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Default Re: Where is our African American Economic plan!?

I applaud your thinking, I am a loan officer and have worked with many black families to refianance thier homes. A lot of whom were given higher mortgage rates than thier scores would warrant.This in part was due unfair lending practices by even some of our larger lending banks

One of my suggestions that I offer my clients, is to establish a goal of when you retire to have no mortgage. This can be accomplished in several different ways. I ask them how many more years before you retire? Usually it is between 5-20 years.
Then I use a computer generated amoratization chart to input thier mortgage information,original loan,balance,monthly payment,etc. Even without refianancing I can show them how much additionally they would have to pay per month to pay off thier mortgage before they retire. In many cases it is approximately 10-15% more per month.
If they chose to refinance I can usually lower thier monthly payment based on the equity in thier home.
Two many times I have seen where individuals and famlies have reached retirement age, but are forced continue to work to pay off the last 3-5 years of thier mortgage.

Another method I suggest, is to make 13 mortgage payments per year. Again
this can be accomplished in using different methods:

Take your mortgage payment divide it by 12 and pay an additional 1/12 with your monthly payment.

This will generally reduce a 30 year mortgage to 22 years. Saving 8 years of mortgage payments.

Another way is to use your yearly tax return to make a 13th payment.

These methods may require you to re-orient your monthlly budget, but the results will be well worth the effort.

By making 13 payments per year you would save 8 years on your total mortgage.

mortgage 30 years x 12 monthly payments = 360 payments - 8 years(8x12=96) savings = mortgage payoff in 22 years


FOR EXAMPLE


mortgage : 30 year mortgage x 12 months = 360 mortgage payments

typical loan; $100,000 @ 6.0% for 30 years(360 payments)= $599.55 p/mo excluding taxes and insurance.

$599.55 x 360 payments = $215,838.00 to pay off a $100,000 loan



Utilizing the same mortgage @ 22 years by making 13 mortgage payments per year.

mortgage: 30 year mortgage - 8 years (by paying 13 mortgage payments per year)

8 years x 12 monthly payments = 96 saved payments

96 payments x $599.55 = $57,556.80 savings

Total loan payoff @ 30 years $215,836.00
minus 8 years savings $ 57,556.80

total loan payoff @ 22 years $158,279,20


Results : paying $158,379.20 vs 215,836.00 for $100,000.00 home

Yours In Sucess,

Reginald
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  #6  
Old October 18th, 2005, 11:35 AM
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Thumbs up Re: Where is our African American Economic plan!?

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One of my suggestions that I offer my clients, is to establish a goal of when you retire to have no mortgage.
Reginald,
This is good planning advice. Sometimes we look for GRAND PLANS when what we need is some practical advice. Thanks for sharing.

Amandla!
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Old October 19th, 2005, 12:50 PM
reginald reginald is offline
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Default Re: Where is our African American Economic plan!?

Thank you for your comment.

I have a favor to ask of you. As site moderator would you please repost my comments as a new thread under Personal Finance/Creating Black Wealth and under Entrepreneur's Corner, with the title " Mortgage Refinancing 101" to get the broadest viewing by our fellow members.

Just think if 100 familes were to save $600.00 per month by retiring thier mortgage. Thier would be $60,0000.00 per month returned to our Black Communites.
Now imagine 1,000 familes or 10,000 familes with no mortgage payment.
The money recirulated in our communites would only help magnify our own self-determination.

Thanking you in advance,

Reginald

Last edited by reginald : October 19th, 2005 at 04:23 PM.
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  #8  
Old January 1st, 2006, 07:54 PM
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Default Re: Where is our African American Economic plan!?

Kim,

I know that this is an old post.

Looking forward the National Black Business Trade Association is attempting to do its part.

Will you help?

Lee Green, Chairman
National Black Business Trade Association
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