In order to accumulate wealth, income typically has to figure into a viable equation. Income is what people earn from labor, dividends, interest and rents or royalties generated from property ownership. If income is derived from such investment vehicles, recipients have reached a level of understanding that would cause them not to end up broke and downtrodden once their employment years have ceased. Wealth building is a gradual process that occurs from saving, investing and sacrificing daily, monthly and annually.

Stand your ground and declare an embargo on going to shopping centers and shopping on line. Refrain from succumbing to false advertising of lower prices being offered on merchandise on Black Friday, when in fact prices on merchandise are increased. Some suggestions have been included to help you save and avoid being a promiscuous spender.

1.ENERGY CONSERVATION: Americans constitute 5% of world population, but consume 24% of world energy according to BP Statistical Review of World Energy 2007. Start in your place of domicile by turning off lights and electrical gadgets when not in use. Turn down heating and cooling systems when your home is not occupied due to work days or vacations. If you are gone for some forty to fifty percent of a typical day and your heating and cooling plant are not operative during that period you are likely to see a significant savings in utility cost. These savings reflect money that could be placed in your savings account at end of each month. Teach all family members to turn off energy consuming items when not in use because money saved in utility expenditures is more money you and your family has available for saving , investing and wealth building and asset protection.

2.VEHICLES:Transportation cost (insurance, petroleum, maintenance, payments) is by far second largest cost item in a typical family budget. Automobile manufactures count on individuals keeping a vehicle for some 3.5 years before they dispose of same Considering exorbitant cost of vehicles with financing being in the 7 to 8 year range unless one makes a substantial down payment trading in a 3 to 4 year time frame could result in one creating an abundance of debt from trading up for new vehicles. When acquiring a vehicle, think in terms of owning that vehicle for ten years or 200,000 miles. However, of utmost importance is retiring that debt obligation in three years or less. A vehicle is the most non appreciable item in a typical house hold budget and each time you make a payment that vehicle depreciates in value. Save money to pay cash for your vehicle and create a viable relationship with an honest, competent, courteous and reliable mechanic is essential.

3.SAVINGS & INVESTING: Utilizing ten percent of your gross income for saving and investing is ideal to avoid impoverishment.  By all means it must be consistent and start early because it is a great benefactor when accumulating wealth. The more you save the better you can be prepared for unanticipated expenses that may come your way to disrupt your life styles. Fifty percent of all marriages end up in divorce and a substantial percentage of marriages are broken because of money or lack of money to meet debt obligations. One of the basic principles aspiring individuals should crystalize before marriage is consider current income, expenses assets or debt  If Mr. or Ms. RFM (right for me) is really clicking each of you will survive more abundantly when positive cash flow is a way of life.

4. GIFT GIVING: Throughout the year occasions arise that require expenditures for a gift and this is more renowned at Christmas than any other time of year. If you are engrossed with a group of co-workers friends or associates to exchange gifts, establish a limit for amount to be paid for that gift. Whatever you do during this period don’t create debt that will be with you for years to come or spend money you don’t have.   In purchasing gifts, place an amount by that recipients name even though you may not know what item will be. Once you have established amount for each person stay within that budget limit you have established in advance. Don’t spend money you don’t have or spend money to get a discount or a bonus. Don’t wait until the last minute and rush to buy something because Christmas is just one day and the item is likely to be substantially discounted immediately after Christmas. As always, lay–a-ways can be a good mode of payment where permissible.

5. MARKETING: Business enterprises spend in excess of $275 billion each year attempting to influence consumers to buy products they don’t need or want, but to improve that business bottom line. Black advertisers partake very sparsely in this revenue stream and Black and Brown people expend in excess of $2 trillion dollars due significantly to advertising. The best option for intelligent consumers is to turn off advertising commercials due to lack of common good that item being promoted can be to you and your family. If you don’t have the item as a planned purchase, ignore the advertisement.  Alcoholic beverages, vehicles, tobacco products, beverages, jewelry, and apparel items are heavily advertised to minority groups but each has little or no appreciable value. 

6. AS CONSUMERS OF GOVERNMENT SERVICES: Black and Brown people must become aggressively involved in voting and becoming apprised relative to what duties government and elected officials and their associates perform. Government exists to assist individuals that help politicians get elected to serve their constituents. They have political privileges and benefits regarding employment, contracts, sitting on boards and commissions and serving as department heads to establish and interpret policies and procedures.

Typically these policies and procedures fail to embrace your views and concerns if you are void of capital or positive cash flow. Appointees to a parole board could determine if your son or grandson is released on parole or remains incarcerated for a crime he may or may not have committed. Federal Reserve Board members can change interest rates that result in you paying a higher interest rate on home and automobile loans and credit card debt. Local planning and zoning boards could vote to permit a strip joint within a 500 foot radius of your home, resulting in pandemonium at all hours of evening that prevent you from sitting on your porch and ultimately driving down property values

7.ESTABLISH SMALL BUSINESS ENTERPRISES:Owner operated business enterprises typically generate more income to proprietors than jobs working for others. Don’t be reluctant to establish and build your own business and establish your customer base. Clinton Mosley owner and operator of A Good A/C Company has been in heating and air condition business better than 20 years, Does no marketing, and has an abundance of business. Michael Kanu, owner and operator of Michelle’s Home Style Buffet, has two well established eating facilities that serve delicious meals and has been in business for some ten years, and continue to grow. Ted Preston Smith owner/operator of Uniquely Yours Florist for better than 25 years in Louisville Kentucky. Recently retired from his floral business. Each of these business enterprises provided and continues to offer prompt courteous and reliable service at reasonable prices.to their customers in very competitive industries.

Each took entrepreneurial risk, invested their own capital and make employment opportunities available for a vast number of individuals. Each is a visionary in a competitive market that gives more service than expected to customers and are embraced by their markets.

Individuals financially depleted at end of their careers can excel and survive, but it must be on their own terms and accord. Economically misguided individuals are good citizens and outstanding Americans. However to become renowned and transcend from consumers to producer’s they must commence to make economic sacrifices to bolster their lives and families over extended periods of time. Considering political climate in country at this juncture, governmental assistance is not on the drawing board, and if so, it’s not likely to reach fruition due to political gridlock. Now is time to do for self and work on your economic salvation. Reportedly, the poor will always be with us, but you can determine who that person will be, and put forth a gallant effort it’s not you or any of your family members.

By F. Eugene Mayo      
The author is a Real Estate Agent and Broker in Texas.