The wealth gap between black and white households has widened to a 24-year high, according to new figures from the Pew Research Center. The median wealth of black households dropped to $11,000, a 34 percent drop from 2010 to 2013, while the median wealth of white households grew to $141,900. That’s 13 times higher than black households. Here are some simple ways you can help create wealth for your household:
- Track your spending. Write down everything you and your family buys, no matter how insignificant. After a month of dedicated tracking, you will see how much is going out, and what you need versus impulse buying.
- Can your change. Each day, put your extra coins in a jar with the lid glued (sans the coin opening). At the end of the year, open it and see how much you have saved.
- Cut the credit. Find the credit cards with the highest interest rates, and pay them off first. Also consider moving those balances to a card with a lower interest rate. After you’ve paid them off, put the same monthly payment into a savings account.
- Increase your income. With mounting bills, especially after the holidays, think about taking on a second job. Be creative and think about what you can do to earn extra money.
- Join food co-ops. To cut your food bill, consider a co-op that supplies meat, cheeses, produce, bulk items and more. New York has hundreds of co-ops, depending on your location and budget.
- Find frugal fun. Entertainment is a big expense for many households, so find more cost-effective or free ways to have fun. Get rid of cable and switch to internet accessed services like Netflix or Hulu. Instead of the movies, rent new releases from Redbox.