In society today, achieving financial freedom is a dream shared by so many. Who doesn't want to have the freedom of choice that money brings? Unfortunately, the reality remains that systematic inequalities enable the persistent racial wealth gap, disproportionately impacting minority communities. In this article, we will embark on a journey to explore the root causes and challenges faced by communities of colour in their quest for financial independence.

We will draw insights from our panellists from the US Atlanta Leadership Summit 2023 as they share their setbacks and strategies for overcoming them, emphasising the importance of knowledge, entrepreneurship, and mentorship in wealth creation.

Let’s start with the systemic barriers in place. There is a lack of access to financial knowledge. Some of us may think, “ ‘Hey, I have the same educational opportunities that my counterparts who don't look like me,’... but I think when we talk about really building our generational wealth, it's not about what's happening around us right now that's affecting us, it's about hey did your parents have the education?

Did they have the educational opportunities that they passed along to you about money? Probably not in a lot of instances, because they didn't, weren't afforded those opportunities that happen formally in institutions, universities, and others may have the luxury of benefiting from.” Marguerite Pressley Davis.

“May 17, 1792, is when the New York Stock Exchange started, then it wasn't until June 19th 1865, when the last slaves were officially told that they were free…that was 73 years. We weren't even able to get to the game right then (1865). It wasn't until 1949 when the first black stock Brokers were even on the scene….So think about it, 157 years occurred before African Americans were even allowed to be part of the gang that's like if you played Monopoly that's like letting the person that's playing with you go around the board 157 times getting whatever property that they want to get doing all these sorts of things and finally you show up and say hey it's time for me to roll my first time yeah you're well behind and for Generations.” Panellist Steven Reddick.

Understanding these historical disadvantages is crucial in recognising the ongoing racial wealth gap and the urgent need to address systemic issues that perpetuate it. But what can you do?

Tip 1: Empowering Financial Decision-Making

It’s important to gain financial confidence and competence. You can do this through the vast educational platforms out there, like Finance Savvy CEO. Doing this will enhance your business's profitability and longevity, in turn adding to your generational wealth.

Tip 2: Intentional Entrepreneurship and Profitable Business Building

Anyone can be an entrepreneur, but the difference between those who succeed and fail is intention. You have to go beyond merely starting a business and focus on building a profitable venture. Many black entrepreneurs start a business, hoping to keep it and pass it down, but that is not how you build wealth. Start a business with selling in mind.

With each business sold, the more profitable you will become. By strategically growing businesses and generating higher profits, individuals can overcome setbacks and lay a foundation for generational wealth.

Tip 3: Leveraging Mentorship and Taking Action

Though knowledge is power, it comes down to taking action. You can find anything online, but find someone who can guide you and support you on this journey. Put yourself in the room with someone you admire, making great financial strides before you are “ready”, and shoot your shot. Chances are, you will find someone willing to mentor you to greatness.

In the end, following these three tips can set you on a path to success when it comes to overcoming barriers to building generational wealth. It is all about having the right intentions and making sound decisions.