GROW: Building Wealth in the Face of Financial Challenges

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Issue #76 - March 18, 2025

Welcome to G.R.O.W. (Guidance Redefines Our Way)!

What's up, GROW family! Tax season is in full swing, and I'm betting many of you feel that familiar mix of dread and confusion with filing. I remember my first time doing taxes as a young government employee. I was so confident until I realized I had no idea what half those forms meant. Talk about a humbling experience!

Speaking of humbling financial moments, years ago I was talking to a family member about how credit scores work, and halfway through my explanation, I realized I was mixing up some details myself. It was a reminder that financial literacy isn't something we're born with—it's something we have to learn and refresh continuously.

That conversation got me thinking about how many of us grew up without solid financial education, especially in our community. My parents were hardworking people who provided, but conversations about investing, compound interest, or retirement planning? Those weren't happening at our dinner table. I had to pick up those lessons the hard way, through trial and error (mostly error, if I'm being honest).

Financial literacy isn't just about balancing a checkbook anymore (though that's still important). It's about understanding how money can work for you instead of you always working for money. It's about building generational wealth instead of just getting by paycheck to paycheck.

That's why this week's newsletter is all about financial empowerment. Whether you're mentoring these young men about their first bank accounts, trying to improve your credit score, or thinking about starting that side hustle you've been dreaming about, the ideas we're sharing today can help you take those next steps toward financial freedom.

Let's go!

Growth Spotlight: Wealth Wisdom: Financial Strategies Across Generations

Let's talk money moves—not just for today but for building something beyond our lifetimes.

I recently saw an interview with Dr. William Spriggs, a professor of economics at Howard University and former Assistant Secretary for Policy at the Department of Labor. He discussed a few things that shifted my thoughts about building wealth in our community.

"Most financial advice assumes everyone starts from the same place," Dr. Spriggs stated. "But the reality is that different communities have different starting points, obstacles, and opportunities. Wealth building isn't one-size-fits-all."

This resonated with me big time. So many financial gurus out there talk about investing in terms that assume you've already got your basic financial house in order. But what if you're still working on clearing debt or establishing good credit?

Dr. Spriggs emphasized that wealth building is generational work—a relay race, not a sprint. "Each generation should aim to create more opportunities for the next," he explained. "That might mean focusing on education and skill-building in one generation so the next can focus on asset acquisition."

Here's the strategic approach he recommends:

First Generation Focus: Financial Stability

• Prioritize emergency savings (3-6 months of expenses)

• Eliminate high-interest debt

• Invest in skills and education

• Establish good credit

Second Generation Focus: Asset Building

• Home ownership

• Retirement accounts

• Business ownership

• Insurance protection

Third Generation Focus: Wealth Expansion

• Investment diversification

• Real estate beyond primary residence

• Advanced tax strategies

• Estate planning

This framework recognizes that wealth building is a journey that often spans generations. Instead of feeling discouraged that you can't do everything at once, focus on your current stage and do that well.

Dr. Spriggs shared a story about his own family's wealth journey. His grandparents were sharecroppers who prioritized education for their children above all else. His parents became the first in their family to own a home and establish retirement savings. Now, his generation is building businesses and investment portfolios.

"Each generation built upon the foundation laid by the previous one," he noted. "That's how sustainable wealth gets created."

I've been thinking about my journey through this lens. My parents emphasized education and hard work, which allowed me to achieve financial stability. Now I'm working on building assets and creating opportunities that could benefit the next generation.

Research supports this generational approach, too. A study from the Urban Institute found that children whose parents are homeowners are 59% more likely to become homeowners themselves. It's not just about the potential inheritance—it's about the knowledge, habits, and possibilities that get passed down.

With tax season upon us, this is a perfect time to think about where you are in your wealth-building journey and what your next steps should be. Here are three practical moves based on where you might be:

1. Building Stability Use your tax refund to establish or boost your emergency fund. Dr. Spriggs recommends keeping this money in a high-yield savings account separate from your checking account to reduce the temptation to spend it.

2. Growing Assets Consider directing your refund toward a Roth IRA contribution. "The beauty of Roth accounts is that you're paying taxes now so you don't have to later," Dr. Spriggs explains. "This can be especially valuable if you believe your retirement tax rate will be higher."

3. Expanding Wealth Look into tax-advantaged investment opportunities. "Many people don't realize that tools like Health Savings Accounts (HSAs) offer triple tax advantages," notes Dr. Spriggs. "You contribute pre-tax dollars, the growth is tax-free, and withdrawals for qualified medical expenses are tax-free."

The bottom line? Building wealth is about playing the long game and recognizing that your financial journey is unique. Instead of comparing yourself to others, focus on progressing from your starting point.

As Dr. Spriggs puts it, "Financial empowerment isn't just about having money—it's about having options." We want to create those options for ourselves and pass them down to the next generation.

Professional Growth Gateway: Personal Finance Essentials

Let's keep it real—managing personal finances can feel overwhelming, especially if you didn't grow up around people who knew how to navigate the system. As someone who had to figure out a lot of this independently, I want to break down the fundamentals that nobody taught me but everybody needs to know.

Credit: The Double-Edged Sword

Your credit score impacts everything from the interest rates you'll pay to whether you can rent an apartment. Here's what I wish I'd known earlier:

• Credit Score Components: Your FICO score (the most common credit score) is determined by:

  • Payment history (35%) - Are you paying bills on time?

  • Credit utilization (30%) - How much of your available credit are you using?

  • Length of credit history (15%) - How long have you had credit?

  • New credit (10%) - Have you recently applied for many new accounts?

  • Credit mix (10%) - Do you have different types of credit (credit cards, loans, etc.)?

• The 30% Rule: Keep your credit card balances below 30% of your limit. Going above this threshold can hurt your score, even if you pay in full each month.

• Credit Myths: Checking your credit doesn't hurt your score—that's a soft inquiry. And closing old credit cards can harm your score by reducing your available credit and shortening your credit history.

I learned this one the hard way. I once closed old credit cards thinking I was being financially responsible. My score dropped 40 points! It took months to recover from that well-intentioned mistake.

Taxes: More Than Just April Anxiety

According to experts, tax planning should be a year-round consideration, not just a springtime scramble. Some essentials to understand:

• Tax-Advantaged Accounts: Maximize contributions to accounts like 401(k)s, IRAs, and HSAs. These can reduce your taxable income and help you build wealth faster.

• Deductions vs. Credits: Deductions reduce your taxable income, while credits reduce your tax bill dollar-for-dollar. Credits are generally more valuable.

• Record-Keeping: Keep organized records of potential deductions throughout the year. This includes charitable donations, business expenses, medical and educational expenses.

Insurance: Protection, Not Just Expense

Insurance is about managing risk, not just complying with laws or lender requirements.

• Life Insurance: If anyone depends on your income, you need life insurance. Term life is generally more affordable than whole life and provides straightforward coverage.

• Disability Insurance: Your ability to earn income is your most valuable asset. Disability insurance protects that asset if you become unable to work.

• Liability Coverage: Consider an umbrella policy in addition to auto and homeowner's insurance. For a few hundred dollars a year, you can get $1 million or more in additional liability coverage.

I never thought much about insurance until a colleague at the Bureau suffered a career-ending injury during training. His disability insurance was the difference between financial disaster and being able to support his family while he retrained for a new career.

Investing: Building Wealth Beyond Savings

Investing can seem intimidating, but the basics are more straightforward than most people think.

• Start Early: The power of compound interest is real. Even small investments can grow significantly over time.

• Diversification: Don't put all your eggs in one basket. Spread your investments across different asset classes (stocks, bonds, real estate) and within those classes.

• Fee Awareness: High fees can significantly reduce your returns over time. Pay attention to expense ratios in mutual funds and ETFs.

• Automation: Set up automatic contributions to investment accounts. This removes the emotion from investing and enforces discipline.

I started investing consistently in my early 30s, and my only regret is not starting sooner. When I look at the growth charts showing what I could have had if I'd begun in my 20s, it's a sobering reminder of the power of time in the market.

Debt Management: Not All Debt Is Created Equal

Understanding how to use debt strategically is a key part of financial literacy.

• Good Debt vs. Bad Debt: "Good" debt generally helps you build wealth or increase your earning potential (like mortgage or student loans). "Bad" debt typically funds consumption or depreciating assets (like credit card debt for everyday expenses).

• Debt Snowball vs. Avalanche: The snowball method (paying off smallest debts first) provides psychological wins. The avalanche method (focusing on highest interest rates first) saves the most money mathematically.

• Refinancing Opportunities: Regularly review your debts to see if refinancing could save you money, significantly when interest rates drop.

I used to think all debt was bad until someone explained how leveraging "good" debt helped him build a real estate portfolio. Now I understand that debt, like most financial tools, is neither inherently good nor bad—how you use it matters.

The most important thing I've learned about personal finance is that it's never too late to improve your financial literacy. Each small step you take builds knowledge and confidence for the next one.

What's your most significant financial challenge right now? For personalized recommendations, email [email protected]. I'm always collecting topics for future newsletters!

Success Spotlight: Teri Ijeoma

This week, I want to spotlight Teri Ijeoma, whose financial journey really embodies what's possible when you combine education with action. Her story is different because it's not about inheriting wealth or having insider connections—it's about someone who created her own financial freedom through determination and strategic thinking.

Teri's background might surprise you. She wasn't a finance major or Wall Street broker. She started her career as an elementary school assistant principal in inner-city Dallas, making around $50,000 a year. While she loved education, the stress of the job was taking a toll, and she dreamed of having the freedom to travel and live life on her own terms.

Instead of just complaining or accepting her situation, Teri got strategic. She started learning about the stock market, initially with the modest goal of making an extra $300 per day—enough to replace her teaching income. She studied trading patterns in her spare time, often waking up before dawn to analyze the markets before heading to school.

What makes Teri's journey remarkable is her methodical approach. She didn't quit her job immediately or risk everything on risky trades. Instead, she built her skills steadily while maintaining her full-time position. It took about five years before she felt confident enough to leave education and pursue trading full-time.

The turning point came when she took a leap of faith and decided to travel while trading. Within a year, she was consistently profitable enough to sustain her new lifestyle. But Teri didn't stop there—this is where her story gets really interesting.

Recognizing that so many others lacked access to practical financial education, she created her "Trade and Travel" course. What began as a small workshop with just a handful of students has exploded into a multimillion-dollar education business that's helped thousands learn the fundamentals of stock trading.

What I respect most about Teri's approach is her honesty about trading. She doesn't promote get-rich-quick schemes or promise overnight success. Instead, she emphasizes:

• Risk Management: Teri teaches that protecting your capital is the first priority. You should never risk more than 1-2% of your portfolio on any single trade.

• Continuous Education: She stresses that markets evolve constantly, requiring traders to stay humble and keep learning.

• Technical Analysis: Rather than trading on hunches or hot tips, she teaches a structured approach based on chart patterns and indicators.

• Mindset Development: Teri is transparent about how emotional discipline is often more important than technical knowledge regarding consistent profitability.

One story that really stuck with me was how Teri helped one of her students—a single mother working two jobs—develop enough trading skills to quit one of her positions and spend more time with her children. That's not just financial education—that's life transformation.

Teri's journey reminds us that financial freedom isn't just about having money—it's about having options. She often says, "My goal isn't to make everyone a full-time trader. My goal is to give people another tool in their financial toolkit so they can create the life they want."

Her success also challenges the narrative that trading and investing are just for certain types of people. By making this knowledge accessible, she's helping to democratize a wealth-building avenue that has historically excluded many communities.

So here's my challenge to you this week (and to myself): Take one step toward building a new financial skill. Maybe it's learning about a type of investment you've been curious about, setting up that brokerage account you've been putting off, or even reading a book about personal finance. The journey to financial freedom starts with a single step.

Community Corner: AFGM Economic Literacy Initiative - The Proposal

Family, I'm about to share something that's been keeping me up at night (in the best way possible). As we prepare for our S.H.I.E.L.D.S. program launch, I can't stop thinking about a critical gap we must address for our young men: financial knowledge.

The Problem Is Real

Let me paint the picture: 78% of Americans live paycheck to paycheck. The average Black family has just $17,600 in net worth compared to $171,000 for white families. And when we surveyed our mentees, 83% couldn't explain the difference between a credit and debit card.

These aren't just statistics—they're roadblocks to the futures our young men deserve.

A couple of years ago a mentee told me, "Mr. Morgan, I want to build wealth, but nobody in my family knows how to teach me." That conversation broke my heart and lit a fire under me simultaneously.

Introducing the Economic Literacy Initiative

I'm proposing a comprehensive financial education program that doesn't just teach our mentees about money—it transforms their relationship with it. This isn't another "how to balance a checkbook" workshop. It is about building generational wealth mindsets and practical skills from the ground up.

Here's what makes this initiative different:

1. Real-World Application No more theoretical lessons that don't translate to life. Our mentees will:

• Open actual savings accounts with initial deposits provided by sponsor partners

• Participate in investment simulations with real-time market data

• Create and launch micro-businesses with mentor guidance

• Complete "financial fitness challenges" that build habits while earning incentives

2. Mentor-Matched Learning Each young man will be paired with a mentor who has financial expertise matching their interests:

• Entrepreneurship tracks led by business owners

• Investment tracks guided by financial professionals

• Real estate fundamentals taught by property investors

• Credit-building strategies from banking professionals

3. Family Integration We know financial habits start at home. Our program includes:

• Monthly family financial workshops

• Parent/guardian resource kits

• Household budgeting tools

• Intergenerational wealth-building strategies

4. Multi-Year Progression Financial literacy isn't a one-and-done lesson. Our curriculum builds over time:

• Year 1: Foundations (Banking, Budgeting, Saving, Credit Basics)

• Year 2: Growth (Investing Fundamentals, Income Expansion, Tax Strategy)

• Year 3: Legacy (Business Planning, Real Estate Introduction, Generational Wealth)

Here's My Vision

Imagine this: Three years from now, every young man in our program has a functional savings account, an essential investment portfolio, practical experience earning money ethically, and the confidence to make sound financial decisions.

Imagine them teaching their siblings and friends what they've learned, creating ripple effects throughout their communities.

Imagine breaking cycles of financial insecurity that have held our communities back for generations.

This isn't just possible—it's necessary. And with your help, we can make it happen.

We Need Your Help - Right Now

This initiative requires partners who understand that financial literacy isn't just nice to have—it's essential for true empowerment. Here's how you can be part of this transformation:

Financial Professionals: We need 15 volunteers to lead workshops and provide one-on-one mentoring. Just 2-4 hours of your time monthly can change a young man's financial trajectory forever.

Business Owners: Commit to hosting 2-3 mentees for job shadowing experiences or providing "entrepreneurship fellowships" where they can learn the ins and outs of running a business.

Funding Partners: To launch this program properly, we must raise $75,000. This covers educational materials, seed funding for mentee savings accounts, entrepreneurship startup grants, and financial incentives for completed milestones.

Resource Providers: Donate financial education books, simulation software, or workshop space to support our activities.

Take Action Now

This isn't one of those "maybe someday" proposals. I want to launch the first phase of this initiative this summer. I need commitments by April 30th.

To get involved immediately:

1. Email me directly at [email protected] with subject line "ELI PARTNER"

2. Call our dedicated hotline at (703) 383-3534

I will meet potential partners every Tuesday and Thursday evening this month for 30 minutes between 7 pm - 9 pm, Book a slot here: https://calendly.com/afgm/meetingmichael

Look, I don't usually make direct appeals like this, but I'm passionate about this initiative because I've seen what happens when our young men lack financial knowledge and the transformation when they gain it.

Will you help us build this financial legacy for our community?

Let's not just talk about change—fund, build, and sustain it together.

Michael's Hot Take: Trade Wars — Where Everybody Loses But Pretends They're Winning

So I see we're bringing back one of America's favorite pastimes: slapping tariffs on everything that moves across our borders. Because obviously, the best way to strengthen our economy is to make everyone pay more for basic stuff. Genius, right?

In case you missed it, we've just hit the world with a 25% tariff on all steel and aluminum imports. You know, those materials are in almost everything we use daily. As expected, Canada and the EU immediately slapped us back with tariffs worth billions. It's like watching kids in a playground: "You hit me, so I'm hitting you back harder!" Except these kids are running entire economies.

Let me break this down in real terms. When the government brags about "charging other countries tariffs," it's really saying, "We're making American companies pay extra taxes on imported goods, which they'll then pass on to you, the American consumer." But hey, that doesn't make for a great campaign slogan.

The reasoning behind all this? Tariffs will magically boost US manufacturing, protect jobs, and balance trade, maybe in some economic fantasy world. In the real world, when we tried steel tariffs in 2018, prices increased for American businesses and consumers. Shocking, I know.

My favorite part of this whole circus is watching officials say these tariffs are "worth it" even if they lead to an economic downturn. Translation: "We know this might tank the economy, but we're doing it anyway!" That's like your doctor saying, "This medicine might kill you, but at least your cough will go away!"

And then there's the presidential threat to slap a 200% tariff on European alcohol if they don't drop their whiskey tariff. Because nothing says "skilled negotiation" like threatening to make champagne cost three times as much, I can hear the crying of wedding planners nationwide.

Meanwhile, the stock market is taking a hit, manufacturers are scrambling to adjust, and consumers are about to pay more for everything from cars to canned goods. But don't worry—we're "winning" the trade war.

You know what's wild about all this? These tariffs aren't some radical new idea. They're the economic equivalent of bloodletting – an old treatment that sounds logical on the surface but usually leaves the patient worse off than before. History shows that trade wars typically hurt everyone involved, especially everyday folks who suddenly find their grocery and hardware bills climbing.

When I was growing up, my father worked for the Cleveland Water Department. He used to say, "Michael, nothing is free." These tariffs are proving his point. We're about to pay for this in ways most people haven't considered.

But hey, what do I know? I'm just a guy who thinks that making necessities more expensive during an already challenging economic time might not be the masterstroke some folks are claiming it is. Maybe I'm just not seeing the genius in making Americans pay more for stuff while other countries retaliate by making it harder to sell American goods abroad.

In the meantime, I'll watch politicians on both sides claim victory while regular folks foot the bill—just another day in the economic theater of the absurd.

This is just my two cents—which, thanks to inflation and tariffs, aren't worth what they used to be.

Closing Thoughts

Tax season might have us all wondering where our money's going, but it also gives us a perfect opportunity to think bigger about our financial futures.

The concepts and strategies discussed today aren't about getting rich quick or playing the market like a casino. They're about building sustainable financial health to lift individuals and entire communities.

I've been reflecting on how financial literacy is about freedom—the freedom to make choices based on what you value rather than what you can afford, the freedom to weather unexpected storms without catastrophe, and ultimately, the freedom to help others along their journey.

Economic empowerment has been a cornerstone of community advancement throughout history. When we understand how money works and how to make it work for us, we gain power not just for ourselves but for generations to come.

As you go through this week, I encourage you to take one small step toward greater financial literacy. Maybe it's downloading a budgeting app, reading an article about investing, or having an honest conversation about money with someone you trust. Remember, financial empowerment isn't about where you start but the direction you're moving.

Until next Tuesday, be safe and be thankful.

Michael

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