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Kevin L. Matthews II, MSTC
You cannot ignore race when it come to the FI/RE (Financial Independence/Retire Early) movement. Doing so is be intentionally color blind and ignorant to blatant facts. Let us discuss.
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Kevin L. Matthews II, MSTC 13 Oct 19
Replying to @BuildingBread
To become hit FIRE you have to have a few basic things. -Little to no debt -A high income (via job or side hustles) -Low expenses -Be disciplined and frugal Now, all of these ingredients sound perfectly okay and inclusive right? Well...not really.
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Kevin L. Matthews II, MSTC 13 Oct 19
Replying to @BuildingBread
Let's break these down one-by-one. First-up debt and jobs. In most cases, to get a high income, you need a high paying job. More often than not this tends to be in tech. And how do you break into tech? College. Here's the catch though.
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Kevin L. Matthews II, MSTC 13 Oct 19
Replying to @BuildingBread
For Black folk we tend to take on more in student loan debt. "86.8% of black students borrow federal student loans to 59.9% of white students," according to the National Center for Education Statistics (NCES)
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Kevin L. Matthews II, MSTC 13 Oct 19
Replying to @BuildingBread
Why do we take on more debt? We tend to get paid less, so it is harder to save upfront and harder payoff at the end. Black people are paid less at EVERY education level.
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Kevin L. Matthews II, MSTC 13 Oct 19
Replying to @BuildingBread
At this point, you may be thinking. We'll go to trade school. Did you miss the part where I said EVERY EDUCATION level. That will not solve the issue. In fact, that virtually eliminates Black doctors, lawyers, professors and other professions that require adv degrees.
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Kevin L. Matthews II, MSTC 13 Oct 19
Replying to @BuildingBread
Next, keeping your expenses low, preferably less than 50% of your income. This makes total sense until you account for my first two points.
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Kevin L. Matthews II, MSTC 13 Oct 19
Replying to @BuildingBread
For easy math, let's say our living expenses are $50,000. But you're paid $100,000 and I'm only getting $80,000. Plus I pay $10,000 in student loans each year. That leaves you with $50K to save + invest. I am left with only $20K. Race plays a big factor in that gap.
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Kevin L. Matthews II, MSTC 13 Oct 19
Replying to @BuildingBread
None of those stats can be changed by "hard work" or "discipline" all else being equal. We see these same outcomes in the real estate market where Black and Brown folk get higher interest rates and lower home values for the SAME types of homes.
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Kevin L. Matthews II, MSTC 13 Oct 19
Replying to @BuildingBread
Now you might be thinking. "But hey, I know such-and-such, what about [insert successful black person]" Congrats on missing the point. This isn't about outliers. It is about a system that sets up specific barriers for some groups that doesn't exist for others.
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Kevin L. Matthews II, MSTC 13 Oct 19
Replying to @iamsandysmith2
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