Planning for A Reason, A Season, and A Lifetime

For African Americans in particular, it’s the world’s greatest gift. Very often you could be entitled to a severance package determined by the years of service to the company. But not so fast--immediately Uncle Sam is entitled to his share. So maybe you will get two thirds of what you originally anticipated. Now, do you create a budget with the thought in mind that jobs are scarce and you might need to analyze your financial future? Or, do you run and buy that car you have been dreaming about? What about the new living room set, or the washing machine? I got it. You’ve been working since you graduated high school and you need a vacation. Finally, you have the resources to go on your dream vacation. Just a thought, but you might need that severance money in a few months when you’re still unemployed.

If we budget ourselves accordingly, this scenario could apply to you. It’s so amazing how we can save $100 per month for a whole year towards a vacation but we can’t save $100 a month for emergencies. Imagine if you received that same severance package and you saved three months emergency cash? In addition, once the severance assets are depleted you will collect unemployment. That plan just gave you six months to look for a new employer. How? Rather than running out and spending the money as soon as you got it, by setting some aside for bills your lifestyle will not be affected.

How many times have you had extra money but chose not to think ahead about future bills and paid the price later? Suffering a disability or loss of job can be devastating when you don’t have an emergency plan in place for such unexpected situations. Some people have even lost their homes to foreclosure because of the lack of proper planning and saving money. Do you want to be in a position like that?

When I make statements like that, I always hear people say, "I can’t afford to save money. It’s just not possible." People even say what I promote is unrealistic in urban communities. Unfortunately, the reality is most African Americans are living from paycheck to paycheck. And if they aren’t, then they are approximately two months away from being evicted.

But let’s look at how we spend money. I find it amazing that women can’t set aside money for emergencies but they don’t miss a hair appointment every week. An average doobie costs at least $10. That’s forty dollars a month. We get our nails done twice a month and if we throw in a pedicure, we just spent another fifty dollars. A design and tip refills add another thirty dollars a month. We work hard all week and each of us needs a break so girl’s night out once a month is mandatory. I’ll give you that you’re getting into the party for free. But even the best looking ladies must pay for the first drink not to look like she is waiting for a man to pay for her enjoyment. The outfit you purchased for the happening party cost approximately $65 dollars and you bought that on sale.

For all of you that attend church on Sunday morning, there are certain churches that a new outfit each month is a must. Now church is a totally different expense. Why? You’ve got to look good for God. An entire ensemble just might run you approximately $100. And if you throw in the hat, you’ve just spent another $30. Just look at the choices you make.

Finally, for everyone that can’t save and you work everyday, do you bring your lunch to work? If the answer is no, you’re probably spending at least $7 for lunch. Normally, you pick up coffee and a bagel for $1.00 and if you’re anything like me, at about 3:00 each day, you must have that soda and a snack running you an additional $1.50. That’s about $9.50 a day give or take a dollar or two. By the end of the week you spend $50 dollars and each month that’s almost $200.

Now I’m not just picking on the women, men have their devices as well.