Talking Building Black Generational Wealth with Kiersten and Julien Sanders of Rich and Regular

I spend a lot of time thinking about building generational wealth in Black and Brown communities. But, a recent Twitter exchange with Julien and Kiersten about this topic made me angry so I thought it was a good conversation to have on Michelle is Money Hungry. We specifically talk about how the generational wealth conversation comes up in African-American homes vs. Immigrant households of color.

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Listen to the Show

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Show Notes:

• Cashing Out goes “live” on June 14, 2022

• How did they get into the personal finance space? Julien spearheaded the interest.

• Julien spent a lot of years on the outside looking in at the online content creation space.

• In 2017 they started their blog and it grew from there. They focus on telling stories about money.

• Professional experience and personal experiences sharing these concepts influence their platform.

• Digital content creation is their full-time business.

• I ask what has it been like building out their brand?

• Timing played a key part in the success of Rich and Regular

• Disclaimer-this topic is so huge that we won’t be able to do it justice in the time that we have.

What Was the Conversation Like About Money In Your Homes?

• African-American-Kiersten
  • Came from a home that had plenty
  • Could have what she wanted within reason.

• 1st Generation family is originally from Jamaica-Julien
  • Understanding the value of the dollar and hardwork
  • Having multiple jobs-it’s not a joke but a badge of honor!
  • Tithing and the Church

• African-American-Michelle
  • Tension around money
  • But I lived a financially confusing life because of access to great recourses
  • Some financial struggle
  • Where we lived was a big deal

• Apply for the scholarship!

• GenX jokes happen at this point about taking care of ourselves while our parents worked.

• I ask Julien what was the perception of African-American money. I love his answer about living in New York City in Brooklyn and the “otherness” of money.

• 1980’s Brooklyn impacted Julien’s world view about money in a way that I hadn’t considered.

• We briefly talk about the Bronx and I share my experience of the Bronx.

What is the Current Conversation About Building Black Wealth?

• Are African-Americans and folks in the Diaspora approaching it differently?

• Kiersten notes that they are seeing an uptick in the urgency around financial planning and moves.
  • Opening themselves up to aggressive action and high risks
  • High earners not paying enough attention to planning
  • A lot of Black people are becoming skeptical on the workplace (traditional 9-5) as a way to make money

• We share our observations about the messaging around wealth building in African-American vs. Immigrant families

• I share my thoughts on this difference in wealth building and generational wealth.
  • I point out that education factors heavily in African-American conversations about wealth

• A conversation about “joy” in work is part of the problem in work American work messaging

• My first gen friends were told “Become a doctor”

• I share how I went to college sight unseen

• Career messaging at my college was the same.

• We awkwardly work through what we’ve seen our friends pushed into professionally

• Julien shares that behind closed doors that the conversation is that African-Americans might not do what they will do.

• I talk about how African American businesses are in the health care space

• Work from home-we’re working harder than before.

• I get excited about the impact of technology on sharing knowledge about issues that impact our finances.
  • Wage transparency
  • FIRE
  • Technology helps to validate or beliefs about what has been impacting our finances.

Reframing Financial Conversations

• Technology creates the opportunity to help accelerate access and equity

• Kiersten breaks down the different types of diversity and equity process that could make impactful financial changes
  • Best in Class-Following the best practices in the DEI space

1. Sharing and informing everyone can help us circumvent slow moving institutions.

What Are the Actions We Should Take to Build Wealth

• Believe the data
  • Kiersten shares the examples of cigarettes being harmful spearheading policy changes

• The likelihood of having a significant income disruption is high (Kiersten accidentally said low)

• Constantly plan for a potential disruption-create a safety net
  • Save your money-ER Funds
  • Don’t assume you’ll always be employed
  • Maybe picking up a side-hustle

• I share a potential podcast episode

• Converting income to income generating assets

• Financial modeling may come from anywhere

• Income generating activities
  • Investing
  • Start a business or businesses
  • Real estate investing

• Income is the key component

• What kind of income could potentially transform someone’s life.

• Industries where you could work may depend on where you live
  • Boat storage-this is a new one for me

• How much money do people need to be earning minimum?
  • Kiersten recommends growing a large margin above what you owe. Baseline expenses and add 40-50%
  • Where financial policy fails people in the US and where we have to pick up the slack.
  • It doesn’t have to be linear. Smaller income streams such as writing ebooks.

Kiersten and Julien Share How They’re Building Generational Wealth

• Starting to pay their little

• Custodial IRA

• College 529 plan opened up

• A focus on intellectual property

• I wonder what the work conversation will be like for their son

Cashing Out Win the Wealth Game By Walking Away

• For Black professionals

• Internalized messages

• Managing their careers

• “No one is going to have your back like you’ll have your own back”

• What to do when someone expresses frustration about what’s not working

• I share why I was so angry when I quit my job

• Julien recommends channeling your frustration
  • Embrace the creator economy if possible-Not just the person in front of the camera

• I share my last year at work story

• I refuse to let Julien and Kiersten go and ask how much should people invest.
  • Impulsive investing

• Damnit, I had one last question. I asked about cryptocurrency. The amount that they could have had if they’d invested in 2014 is kind of shocking. Disclaimer* We all agreed that crypto is a highly unstable asset class. Proceed with caution.

Michelle’s End of Show Comments

• I wish I had talked about financial apartheid and the impact on African-American wealth

• African-American women are the most educated community in the US

• I wish we talked more about how other people impact our money

• Take these actions
  • Ask how much you will earn-what’s the return on investment?

• Leverage the internet if possible-long term process

• Your actions will be a long-term approach

• Learn about Crypto

• Connect people with the opportunity to earn more

• This weird competition between different communities in the Diaspora is unnecessary

• We’re all in this together

Resources:

Julien and Kiersten are the couple behind the award-winning blog and forthcoming book, Cashing Out: Win the Wealth Game By Walking Away under Portfolio Books, an imprint of Penguin Random House.  They are also producers of the award-winning video series, Money on the Table and hosts of the rich & REGULAR podcast.  Based in Atlanta, Georgia, their mission is to inspire better conversations about money.  

The couple has used frugal living, real estate, stock market investing and their online business to build wealth and ultimately achieve financial independence. They’ve paid off $200,000 in five years and their story has been featured in The NY Times, Forbes, CBS This Morning, Marketwatch and the Oprah Winfrey Network. When they’re not sharing stories about their experiences with money, they are parents to their son Beau, traveling the world or searching for their next great meal.

• Money on the Table Video Series

• Rich and Regular Website

• Cashing Out Win the Wealth Game By Walking Away

• Check out my course “Make Money with Ebooks“

• Not a Financial Unicorn-Michelle’s upcoming book

• Coinbase Affiliate