5 Steps to Building Black Wealth, According to a ‘Millionaire Mentor’ – Business Insider
- Cedric Nash founded the Black Wealth Summit conference to share investing principles with Black Americans.
- He believes closing the racial wealth gap starts with investing — in the market, real estate, and businesses.
- He shared a path to building Black wealth that starts with “wealth literacy.”
Cedric Nash’s enthusiasm for helping African Americans close the racial wealth gap is evident when he speaks on the topic. “Personal finance has always been a passion of mine,” he says.
That passion led Nash to found the Black Wealth Summit and serve as its president and CEO. The conference is “unapologetically dedicated to advancing the prosperity of Black people,” where participants can learn about investing from sessions led by Black financial professionals.
Nash tells Insider he founded a consulting company that grew to 300 employees and $90 million in annual revenue. Along the way, he learned his own money lessons as he invested in real estate, securities, and other businesses. He has distilled his investing principles into a set of steps he calls “Millionaire Money Moves,” which he shares on social media and will be included in a forthcoming book.
Nash spoke to Insider about his money moves and overcoming systemic racism, and shared a five-step path to building Black wealth.
1. Understand wealth
The first step, according to Nash, is to understand wealth: why it’s important, how to get it, how to increase it, and what makes it decrease. Understanding the path to financial security is crucial. “If you can get control of your finances,” Nash says, “you can choose how you live your life.”
That includes redirecting spending from the trappings of wealth, such as expensive cars or luxury brands, to less visible wealth-building vehicles, such as investment accounts. Nash understands the need for validation of success within the African American community. He sees the desire for displays of wealth — which may help people feel respected — as an after-effect of slavery.
“We get that attention and that feeling of real success. It’s not enough to have it and nobody knows it,” he says.
He explains the transition in mindset as: “I’m going to start investing these profits, I’m not going to live these profits.” It’s the difference between looking wealthy and being wealthy. Nash notes that you can’t have both at the same time, and spending to look wealthy gets in the way of using money to make more money.
He says he thinks African Americans don’t need financial literacy, which he defines as learning about compound interest, how to balance a checkbook, etc. He wants his community to gain “wealth literacy”: an understanding of how to accumulate assets …….