The racial wealth gap is a big problem and usually, the conversations around it can sound incredibly intimidating. On the hand, they should.
The Brookings Institute reported that Black families are worth about $17,150 compared to the $171,000 a typical white family has.
On the other hand, there step to take to gain control of your financial well-being, and eventually help move the needle (if not even marginally) to close racial wealth gap. And what better time to lay financial goals than the top of the year. Here are some New Year’s Resolutions you can set to help put your mindset in the right place to build wealth.
Resolve to open a high-yield savings account
As CNBC points out, many of the top high-yield savings accounts are currently offering APYs of 3% or more, including LendingClub High-Yield Savings and UFB Best Savings. Starting one now and continuing to contribute throughout the rest of the year can allow you to enjoy the start of a great nest egg for emergency expenses.
Resolve to pay off your credit cards
95% of Americans have a credit card and cardholders carry an average balance of $5,221, per Experian. If this is you, consolidating your debt via a balance transfer credit card, can offer up no interest for up to 21 months.
Also, putting your balances on Autopay directly via the credit cards’ apps or a financial planning app like Rocket Money can mindlessly help pay down harmful debt, and instantly boost your credit.
Resolve to boost your credit this year
Speaking of credit, many of us are aiming to break into the 700 or 800 clubs this year, and with good reason. On average, a higher credit score can save consumers thousands of dollars each year on various purchases.
You can upstart this process by simply checking your credit report and scores more often. There are many resources that allow you to check your credit score for free, including Credit Journey (no Chase account required), and Discover’s Credit Scorecard (only available to Discover cardholders) or CreditWise from Capital One (no Capital One account required).
