Black women, the odds are against us. Statistically, we have a harder time finding work and on average, we receive less pay for the same work. Thankfully, you don’t have to be a financial expert to save a few extra dollars and prevent financial stress. Here are eight ways you can save your money:
1. Say No to Fast Food
How much could you save: (approx. $200/month)
Need your coffee in the morning? Don’t buy it from a corporation. Instead, head to a local coffee shop and get some fresh coffee beans. Not only will you be saving money, but if you make it right, your home-brewed coffee will taste even better than the chain-store version. Choosing not to eat out regularly doesn’t mean you have to become a shut-in though. Instead of eating out with your friends, invite them over for a home-cooked meal.
2. Avoid Getting Into Debt
How Much You Could Save: A of money (depending on where you go to college)
For black women in college, it’s extremely important to avoid getting into debt as much as possible. A study from the American Association of University Women (AAUW) revealed that black women borrow the highest rate of loans during university and have the toughest time paying them back. If you must get a loan, make sure you’re aware of the repayment plans offered, the interest rate, and ensure that you have a good payment plan. If you already have debt but the interest rate is low, you can focus on saving money gradually first rather than focusing entirely on your debt. But otherwise, it’s important to pay off your debt as soon as possible.
3. Start Saving For Retirement Now
How Much You Could Save: Up to $1 000 000 (with compound interest)
Don’t wait until you’re 28 to start saving for retirement. Thanks to compound interest, saving just five dollars a day or $100 per month can add up to million save consistently until the age of retirement.