There are some must-read books in personal finances that will help you develop good saving habits.
Undergoing training and taking the time to read can help you improve economic control so you can become more financially literate and, ultimately, increase your financial freedom.
While many manage perfectly well relying on their intuition to guide their spending habits, it can also be useful to expand your knowledge and set up a budget, an emergency fund, or ensure you have a financial contingency plan in the event of something unexpected.
One way to get on the right track with your money is by reading.
There is a wide range of reading material that can help you apply a better philosophy to your finances.
One of them is Rich Dad, Poor Dad, a must-read if you want to learn about personal finance.
It offers smart ways to escape the vicious circle of working hard for others your whole life while failing to save anything.
Here are seven helpful lessons you can apply from the book to your own life.
1. The rich make their money work for them
You must have heard the phrase “live to work or work to live”.
This is one of the basic concepts addressed in the book.
Most work to survive. If they have money problems, they ride them out or ask for a raise.
This is the vicious cycle most middle and working-class people fall into.
Generally, people with fewer financial resources study to get a good education to qualify for more relevant jobs so they can then earn more money.
They tend to avoid taking risks for fear of not being able to pay their debts, being fired, or not having the money they need to survive.
On the other hand, rich people make money and don’t work to earn it.
In other words, they buy assets that generate income. This is one of the book’s most important lessons.
2. Financial education is your greatest asset
According to this book, money isn’t your greatest asset.
If people are prepared to be flexible, have an open mind, and learn, they will tend to get richer.
If a person thinks capital solves all their problems, they will usually have problems their whole lives.
“Intelligence solves problems and produces money, and money without financial intelligence is quickly lost,” says Robert Kiyosaki, author of the book.
The book recommends having knowledge of accounting, investing, markets, law, bidding, marketing, leadership, writing, public speaking, and communication.
3. Don’t work to earn money; work to learn
Another of the book’s great teachings is that work is to be used as a platform to improve the skills you have.
“Find a job where you can learn the above skills,” says Kiyosaki.
He stresses that learning can make you much more knowledgeable and can provide you with unique skills to improve your professional situation.
4. Know the difference between assets and liabilities
“An asset is something that puts money in your pocket and a liability is something that takes money out of your pocket,” the book explains.
In this sense, rich people acquire assets (securities and investments) and poor people add liabilities (commitments and obligations).
This is the main difference that can punctuate the future development of an individual’s personal finances.
5. Reduce your spending as much as possible
This lesson is closely linked to the previous one.
The author advises having as little debt load as possible because, in the end, it hinders the financial freedom you want to achieve.
“Reduce your liabilities” is one of the most repeated phrases throughout the book.
You have to keep in mind, however, that there is “positive” debt, like a mortgage, and then “negative” debt, like quick loans.
6. Reinvest the profits you make
The profitability created by your assets should be reinvested in other assets, according to the book.
“Don’t think about how to earn more income; look for more valuable assets – that’s how you should repeat the cycle,” says Kiyosaki.
7. Don’t rely exclusively on financial advisors
The book’s final piece of advice is that every individual has great insights into the capital that makes up their own personal finances.
Getting help from a financial advisor can be useful, but you also need to have control over your own money.
“Learn how to invest because nobody will do it better than you,” says Kiyosaki.
The relief, however, is coming to an end soon: Borrowers must restart making payments after September 30.
Insider spoke with three people about how the end of COVID-19 student-loan forbearance will affect their lives and finances.
Camryn Hicks, 25, has $14,250 in student-loan debt and lives in rural Maine
I graduated from Boston College in 2018 with a degree in business and marketing. I’m part of the first generation of women in my family to go to college, and had some financial assistance in the form of loans and grants.
But I didn’t know what my student-loan payments would look like later when I was signing up for them.
When I graduated, I got a job working on a re-election campaign for Elizabeth Warren. I was able to start paying my loans off right away, and have never missed a payment. Warren dissolved her presidential campaign right around the time COVID-19 started to spread, so I ended up moving back in with my parents and starting a new job remotely.
During the forbearance, I’ve been able to make large lump-sum, principal-only payments on my student loans using my stimulus checks. Because of the forbearance, I’ve been able to start playing catch-up with my finances. When my car was stolen, I was able to replace it, and I also opened a retirement account.
For me, the forbearance period was a taste of what cancellation would feel like. The conversation around student loans, I think, focuses too much on the individual, and if that one person is going to be able to pay the debt they signed up for. But it’s an economic problem, not a personal one.
My parents took out hundreds of thousands of dollars in Parent PLUS loans to send both my sister and myself to school. Student-loan debt isn’t a personal burden, it’s a family burden.
In many ways, student loans perpetuate wealth inequality – where the people who don’t have to take them out get a head start. I think we need to stop splitting hairs over who’s worthy of relief.
Glenda Johnson, 32, has $36,693 in student-loan debt and lives in Charlotte, North Carolina
When I graduated from college in 2011, my student-loan balance was over $50,000, and I’m still paying back most of it.
I’m fortunate because throughout the pandemic, I’ve had a job. I make about $49,000 a year working in the sales department of a big tech company and also freelance on the side.
Most of my loans were in an income-based repayment plan before the forbearance. The forbearance has been able to keep me afloat, because for over a year I haven’t had to worry about being able to make my payments or not.
A few of my loans didn’t qualify for forbearance, so I’ve still been making payments on those.
With the forbearance ending, student-loan forgiveness is my best bet. The job market I graduated into isn’t what they told us it would be when I was in school, and it’s a lot of money to repay when I’m not seeing a rise in income.
Having to make payments again will weigh heavy on me, but I’m staying positive that there will be a solution somewhere – whether it’s me getting a promotion, or getting more money from my side gig.
I remain hopeful because the conversation around student loans is changing, but for whatever reason, we can’t push the needle, and people like me with student loans will have to keep waiting for change.
Dylan Cawley, 32, has $185,682 in student-loan debt and lives in northeastern Pennsylvania
I graduated with a master’s in public health from the University of Pittsburgh in 2013. For my undergraduate degree, I went to a state school, but for my master’s program I had to take out extra loans to pay for my rent and living expenses, which totaled in over $50,000 a year.
With the exception of the six-month grace period after graduation, I’ve been making monthly payments on my loans for over eight years. My federal loans are on income-driven payment, and I’ve been making regular payments on my private loans.
The forbearance has given me room to breathe. I’ve always wanted an emergency fund, and thanks to the CARES Act I’ve been able to start one. Once it ends, I’ll have to readjust my budget to include an additional $260 payment.
I think a lot of people who don’t have student loans don’t realize just how stressful it is. We aren’t complaining for no reason.
I’m not holding my breath for student-debt forgiveness. You can’t just forgive all existing student loans. If we forgive all student loans now, we’re going to be in the same situation 15 years from now. We have to start looking at student loans as a whole problem within itself.
Usain Bolt has said that the most valuable personal finance lesson he’s learned is to save more than half of his pay.
“Then you can spend the rest and pay bills,” he told CNBC Make It. “I tell people if you make $10, save $6, and then you can figure out what to do with the rest.”
The 34-year-old Jamaican sprinter, who retired in 2017, admitted that he wasn’t always good with money, and splurged more than he’d have liked to on his journey to worldwide fame. He said he would have advised his younger self to save as much as he could, according to CNBC.
Bolt set out to make big bucks after his 2004 Olympic debut at Athens when he was just 18. He said he was fortunate to have a team around him that mentored him on how money worked, and that “really helped me to understand how to save.”
The track star’s fortune has placed him at number 45 on the Forbes list of highest-paid athletes.
Bolt said that witnessing athletes dealing with long-term injuries opened his eyes to the troubling reality of what could happen if he had no savings.
He said the best career advice he’d received was from his father. “He said to me: ‘Son, anything you want, just work hard and be dedicated and you will be fine.’ And for me I’ve always lived by that,” Bolt said.
Young investors, and Gen-Zers in particular, are pouring their spare cash into things like cryptocurrencies and meme stocks, drawn in by the social media communities that have banded together to take on Wall Street giants, and popularized by retail trading apps like Robinhood.
As positive as it is to see young people get involved with their own finances, these apps might be doing more harm than good, seeing as they don’t educate their users enough and aren’t particularly inclusive places, according to ‘finfluencer’ and personal finance expert Tori Dunlap.
Dunlap, who has millions of followers on Instagram, TikTok and Twitter and runs personal finance education and advice brand ‘Her First $100K’, says the problem with these apps is they are appeal to new, young investors that are often unaware of risks, or what a good investing strategy is due to a lack of education on the subject.
“They’re focusing on young people, which is great, but young people who don’t really know what they’re doing. They don’t really know how to invest, don’t really know how to grow their wealth and so I think that that’s a huge risk.” she told Insider in an interview. “Going after this certain population is great, but what are you doing to educate them? What are you doing to make they understand a risk before, you know, the risks involved before they start investing?” she said.
Dunlap knows a thing or two about looking after her finances. She started her first business age 9 and by the time she was 25, she’d built up savings worth $100,000.
Retail trading has soared in popularity over the past 18 months throughout the COVID-19 pandemic, with apps like Robinhood or platforms like eToro seeing booming business. But they’re not without pitfalls.
Just last month Robinhood agreed to pay nearly $70 million to US regulators to settle claims it had misled millions of customers, approved ineligible traders for risky strategies, and didn’t supervise technology that locked millions out of trading. This was the largest fine on record to the Financial Industry Regulatory Authority.
Alongside this, retail trading apps and social media influencers who talk about finance have pushed the idea of democratizing trading, meaning that anyone can do it and they don’t necessarily need financial professionals to help them make money from investing.
Robinhood was not available for comment when contacted by Insider.
Dunlap said apps like Robinhood have done well at making investing more interesting and appealing to young people , which she thinks is key in terms of them starting in growing their wealth early in life, but she also believes they still have a long way to go.
Trading apps often “gamify” activity, rewarding users with little bursts of digital confetti on their screens when they make a trade, or playing little jingles to notify them of updates. There have been well-documented cases of users that have suffered the equivalent of gambling additions as a result, for example.
Another one of her qualms is that the community the trading apps create aren’t especially inclusive. The lack of educational tools is one issue, but Dunlap said she thinks it reaches all the way to these apps are designed, which she describes as ‘bro-y’.
“It’s not really a democratization if it doesn’t involve minority groups, if it doesn’t also involve women, and people of color and other members of other minority groups,” Dunlap said. “Yes, it’s, like, appealing to younger people, but it’s not straight white male hedge fund managers, it’s just straight white male ‘finance bros.'”
Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective.
The best debt consolidation loans of 2021
5.74% to 24.24%
$3,000 to $100,000 for unsecured loans, $3,000 to $250,000 for secured loans
5.93% to 19.99%
$5,000 to $100,000 (for excellent credit)
Lightstream Debt Consolidation Loan
5.99% to 16.19% APR (with AutoPay)
$5,000 to $100,000
SoFi personal loan
5.99% to 24.99%
$5,000 to $40,000
From 9.95% – 35.99% APR
$2,000 to $35,000 for unsecured loans; $5,000 to $25,000 for secured loans
Avant Personal Loans
Generally, you’ll need a personal loan for debt consolidation, which means replacing multiple loans with a single loan instead.
Most personal loan lenders ask about loan purpose when starting the loan application process, and often, personal loans for debt consolidation have higher interest rates than other personal loans and other loan types.
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Flexibility makes Personal Loan a top contender for best personal loans for debt consolidation. Wells Fargo separates debt consolidation loans from personal loans, but the interest rates are the same.
Benefits include incredibly competitive interest rates, ranging from 5.74% to 24.24% APR, and an autopay discount of 0.25% if payments are made from a Wells Fargo account. For unsecured personal loans, the most common type for debt consolidation, the amount available ranges from $3,000 to $100,000 and there are no origination or prepayment fees.
Wells Fargo gives several options for personal loans that aren’t common elsewhere. Firstly, there’s an option to secure your loan with a CD or savings account, though that option is only available to current customers. Secured loans allow you to borrow up to $250,000, though an origination fee of $75 applies to secured loans (unsecured loans don’t have a fee).
Wells Fargo can send your loan funds to your Wells Fargo bank account, or to a credit account outside of Wells Fargo to pay down your debts directly.
Watch out for: Secured loan options. Secured loans use collateral to bring down interest rates and increase the amount available to borrow. But using these savings accounts as collateral could mean losing your savings or CD if you don’t pay on your loan.
Additionally, it’s worth mentioning Wells Fargo’s history with data security and compliance. The bank has faced several federal penalties for improper customer referrals to lending and insurance products, and security issues tied to creating fake accounts several years ago.
Lightstream Debt Consolidation Loan is a highly regarded lender for many loan types, and has been a top pick across Insider’s coverage of the best personal loans and best auto loans. However, this lender only works with borrowers with good or better credit, with a minimum credit score requirement of 660.
LightStream offers consistently competitive interest rates, though its minimum interest rate for debt consolidation is higher than its typical personal loan’s interest rates. However, this lender does not have any prepayment or origination fees. Same-day funding is available with LightStream.
Watch out for: Varying loan terms between LightStream’s typical personal loans and debt consolidation loans. Only borrowers with excellent credit can borrow the $100,000 maximum, and anyone without excellent credit may not qualify for the full amount.
LightStream defines excellent credit history as an account with five or more years of credit history, stable and sufficient income for debts, and a variety of credit history with little or no credit card debt. If you’re looking for a debt consolidation loan, chances are you have a significant amount of debt, and may not fit these qualifications.
Additionally, LightStream doesn’t have a way to pre-qualify online. You’ll have to apply for the loan to find out exactly what your rates and terms could look like, which could make comparison shopping difficult.
A SoFi Personal Loan is the best option for anyone with a high balance, as this lender makes debt consolidation loans of up to $100,000. Debt consolidation loans from this lender are comparable in rates to those offered by LightStream, but SoFi offers higher loan limits to all applicants, whereas LightStream only allows some borrowers to borrow up to $100,000. Similarly, SoFi doesn’t have any application, origination, or prepayment fees.
SoFi offers unique features like unemployment protection, which could put loans in forbearance for up to three months if you find yourself out of work.
Watch out for: Stringent requirements. SoFi personal loans have a minimum credit score of 680. According to NerdWallet, the average income among borrowers is over $100,000.
In the fair credit range, it can be tough to qualify for a personal loan with reasonable interest rates – many lenders have a minimum of 660 or 680. However, a Payoff loan could be a good option for people with credit scores as low as 640. Interest rates are comparable to those offered by LightStream and SoFi, but this lender has less stringent requirements.
Compared with competitors Prosper and Best Egg, which both have the same 640 minimum credit score requirement, Payoff’s interest rates are capped lower, and could have lower origination fees.
Watch out for: Origination fees. Payoff offers loans with origination fees ranging from 0% to 5%. Competing lenders Prosper and Best Egg charge minimum 2.41% and 0.99% origination fees, respectively. The better deal will depend on your credit score, income, and repayment term.
With bad credit, a personal loan for debt consolidation can be expensive, or hard to qualify for. An Avant personal loan is the best bet for borrowers with poor credit, requiring a minimum credit score of 600.
Compared to other personal loan lenders offering debt consolidation loans for bad credit borrowers, Avant’s terms are the most generous. Interest rates range From 9.95% – 35.99% APR. While there is an administration fee, it could be lower than competitors’ fees with a cap at 4.75%. Avant also has the advantage of quick, next-day funding available.
Watch out for: Secured loan options. Like Wells Fargo, Avant offers the option to secure your loan with collateral like your car. While this could be helpful to lower interest rates, it could put your car in jeopardy if you don’t pay. Secured loans have an administration fee of 2.5%, and a maximum amount of $25,000.
LendingClub personal loans: This lender has the potential for high origination fees that could add to the cost of borrowing. The average origination fee is 5.2%. Read Insider’s full review here.
Prosper personal loans: Prosper’s minimum credit score requirement is 640, but borrowers with this score could get lower interest rates and potentially lower fees from Payoff. Read Insider’s full review here.
Best Egg personal loans: Like Prosper, borrowers with credit scores of 640 or above could get lower minimum interest rates and lower maximum fees from Payoff. In order to qualify for the lowest possible interest rates, borrowers need a minimum FICO score of 700 and an income of at least $100,000 per year. Only three-year and five-year loan terms are available, making these loans less flexible than other options. Read Insider’s full review here.
Discover personal loans: Discover’s personal loan rates start higher than other lenders’ loans, and borrowers who meet the minimum credit score requirements could get lower interest rates from LightStream, which cap lower. However, Discover makes payments directly to creditors, which could simplify your payoff process. Wells Fargo is the only other bank on our listing to offer that option.
Axos personal loans: This lender’s personal loans require a minimum credit score of 720. For borrowers with this type of credit, lower interest rates can be found elsewhere.
OneMain Financial personal loans: OneMain doesn’t have a minimum credit score required to apply, which could make it a viable option for people who don’t meet Avant’s 600 minimum. But interest rates range from a high 18.00% – 35.99%. Read Insider’s full review here.
Which lender is the most trustworthy?
We’ve compared each institution’s Better Business Bureau score to give you another piece of information to choose your lender. The BBB measures businesses’ trustworthiness based on factors like their responsiveness to customer complaints, honesty in advertising, and transparency about business practices. Here is each company’s score:
With the exception of Wells Fargo, our top picks are rated A or higher by the BBB. Keep in mind that a high BBB score does not guarantee a positive relationship with a lender, and that you should continue to do research and talk to others who have used the company to get the most complete information possible.
The BBB currently does not have a rating for Wells Fargo as the BBB is investigating its profile. Previously, the organization gave Wells Fargo an F in trustworthiness. In the past few years:
The bank paid the city of Philadelphia $10 million as a result of the city’s claims that Wells Fargo was involved in predatory mortgage lending to racial minorities (2019).
The Consumer Financial Protection Bureau and Office of the Comptroller of the Currency charged Wells Fargo $1 billion for overcharging and selling extra products to consumers with auto and home loans (2018).
If you’re uncomfortable with this history, you may want to use one of the other personal loan lenders on our list.
Frequently asked questions
Why trust our recommendations?
Personal Finance Insider’s mission is to help smart people make the best decisions with their money. We understand that “best” is often subjective, so in addition to highlighting the clear benefits of a financial product, we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don’t have to.
How did we choose the best debt consolidation loans?
To find the best personal loans for debt consolidation, we combed through the fine print and terms of about a dozen personal loans to find the ones that were best suited to help with consolidating debt. We considered four main features:
APR range: For the most help with debt payoff, a personal loan for debt consolidation needs to have lower interest rates than the credit card or other debts you’re consolidating. We looked for the loans that had the lowest rates possible for each credit range and purpose. The average credit card interest rate was 16.28% in 2020, so we focused on loans that had the potential to beat this.
Appropriate loan amounts: We looked for personal loans that had the most variety in loan amounts. According to loan comparison site Credible, the median amount of debt consolidated in May 2020 was $18,000. To benefit the most borrowers, we included personal loans with maximum limits over $10,000.
Minimum credit score requirements: Where available, we considered the minimum credit score requirements for each company. We considered loans for excellent, fair, and poor credit, grouping loans into categories based on these credit score requirements.
Fees: We considered fees like origination or administrative fees in our decisions, looking for loans with the fewest or lowest fees. None of the best loans listed have prepayment penalties.
Nationwide availability: We only considered loans with availability in most or all 50 US states.
What is debt consolidation?
Debt consolidation takes all sorts of debts, including credit cards, medical debt, or typically any other type of unsecured debt, and rolls it into one loan.
Can I use any personal loan for debt consolidation?
Most personal loans allow a variety of uses, and while most include credit card consolidation or debt consolidation, not all do. Make sure to read the fine print of any personal loan you’re applying for, and make sure that debt consolidation is an acceptable use of your loan. All of the loans we considered had an option to use the loan for debt consolidation, if not a separate loan, which we included details for.
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Financial markets are barreling toward a brutal downturn, and investors should bank on cryptocurrencies and precious metals to weather the fallout, Robert Kiyosaki, the author of “Rich Dad Poor Dad,” tweeted on Monday.
“The biggest crash in world history is coming,” he said, adding that sell-offs create buying opportunities but that markets wouldn’t recover for a long time. “Get more gold, silver, and bitcoin while you can,” he said.
Kiyosaki’s bestselling book urges people to understand their finances, not to rely on others for money, and to accumulate wealth by investing in businesses, real estate, and other assets. The founder of Rich Global and Rich Dad Company has been sounding the alarm on the market for several months.
“Biggest bubble in world history getting bigger,” he tweeted last week. “Fed will raise interest rates causing stock, bond, real estate & gold crash,” he tweeted in mid-May.
Kiyosaki recommended holding crypto and metals, saying he expected them to retain more of their value and be more easily converted into cash than other assets during a downturn.
“Why I like gold, silver, bitcoin? LIQUIDITY,” he tweeted in February. “People rushing in to buy a house at top of real estate market. When real estate crashes cannot get out.”
Notably, the personal-finance guru celebrated the retail investors who executed short squeezes on GameStop, AMC, and other assets earlier this year. “Robin Hood and Reddit traders kicking the butts of institutional investors,” he tweeted in late January. “Keep it up. Love it.”
“I am excited about Reddit going after the manipulated silver market,” he tweeted a few days later, adding, “God bless Reddit traders.”
Financial markets are barreling towards a brutal downturn, and investors should bank on cryptocurrencies and precious metals to weather the fallout, “Rich Dad Poor Dad” author Robert Kiyosaki tweeted on Monday.
“The biggest crash in world history is coming,” he said, adding that sell-offs create buying opportunities but markets won’t recover for a long time. “Get more gold, silver, and bitcoin while you can.”
Kiyosaki’s best-selling book urges people to understand their finances, not rely on others for money, and accumulate wealth by investing in businesses, real estate, and other assets. The founder of Rich Global and Rich Dad Company has been sounding the alarm on the current market for several months.
“Biggest bubble in world history getting bigger,” he tweeted last week. “Fed will raise interest rates causing stock, bond, real estate & gold to crash,” he tweeted in mid-May.
Kiyosaki recommends holding crypto and metals because he expects them to retain more of their value, and be more easily converted into cash, than other assets during a downturn.
“Why I like gold, silver, bitcoin? LIQUIDITY,” he tweeted in February. “People rushing in to buy a house at top of real estate market. When real estate crashes cannot get out.”
Notably, the personal-finance guru celebrated the retail investors who executed short squeezes on GameStop, AMC, and other assets earlier this year. “Robinhood and Reddit traders kicking the butts of institutional investors,” he tweeted in late January. “Keep it up. Love it.”
“I am excited about Reddit going after the manipulated silver market,” he tweeted a few days later. “God bless Reddit traders.”
On the eve of the holiday Juneteenth, which celebrates the ending of slavery in the United States, management consulting firm McKinsey & Co. has warned that economic disparities facing Black Americans have stranded millions with negative net worths and reduced their life expectancies.
The new research, which underscores the harsh systemic challenges that continue to encumber the Black community, points to several factors.
For one, McKinsey said, Black workers comprise small, single-digit shares of the total number of professionals in highly-paid careers like physicians (5%) and software developers (4.5%), the global management consultant found.
It’s also tougher for members of the Black community to rise through the ranks of corporate America. For every 100 men in the US who are promoted into managerial positions, just 58 Black women are promoted into management roles, according to a study by LeanIn cited by McKinsey.
And while nearly 13% percent of the US private sector workforce is composed of Black workers, that demographic is pulling in just 9.6% of total US wages.
Perhaps most striking of the study’s findings were data points like this one: In a world in which racial pay gaps didn’t exist, Black wages in the US would be $220 billion higher annually, according to the study, which was previously reported by CNN.
What’s more, 19% of Black families – about 3.5 million in all – are now hindered by a negative net worth as a result of carrying excess debt, as compared to just 8% of white families who are in the same position, McKinsey said.
Among American families that do count a positive net worth, white families have a median net worth of $188,000, as compared to Black families, whose median net worth is $24,000.
The pandemic has inflicted further economic harm on Black Americans
McKinsey said that the coronavirus crisis has worsened the Black community’s economic anguish.
Indeed, the firm said that the fallout from COVID-19 has disproportionally cost Black workers their jobs; deprived them of their savings; and exposed them to significant health risks, given that frontline jobs which were largely held by Black employees left many workers vulnerable to the virus.
Geographically, the McKinsey research found that Black workers are primarily spread throughout southern states.
More than 56% of the Black labor force lives in states in the country’s southern region, like Texas, Florida, and Georgia. That left the authors to suggest that other regions, like states in the west and Pacific, would have to rethink their recruiting strategies to attract Black talent.
“Black workers are underrepresented in the highest-growth geographies and the highest-paying industries,” the study authors wrote. “They are overrepresented in low-growth geographies and in frontline jobs, which tend to pay less.”
The McKinsey study is far from the first to shed light on Black America’s economic reality.
One Pew Research Center analysis from 2018 looked at the standard income ranges of earners in both the Black and white communities in America.
The analysis found that earners at the 90th percentile of the Black community’s range generated just 68% of what earners at the 90th percentile of white community’s earnings spectrum did.
Looking forward, the authors of the McKinsey study said changes based on the findings could help make strides in the right direction.
“Addressing the wage disparities described in our research alone could propel an estimated two million Black Americans into the middle class for the first time,” they wrote. “This could reverse current trends, with cascading effects lifting the prospects of the next generation even future.”
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It’s now easier and more convenient to buy the things you need, when you need them, with microloan providers like Affirm.
Affirm lets you pay for online purchases over a period of time (usually three, six, or 12 months).
Annual percentage rates (APR) range from 0-30% and Affirm does not charge any additional fees.
It’s available at 60+ of our favorite online retailers, including mattress, home and kitchen, and clothing brands.
You’re working with a tight budget, but you need to buy an important essential, you want to take advantage of an online sales event, and you have gifts to buy for everyone in your life – what do you do? Short of having an awkward conversation with a friend or family member to borrow some money, there’s now an easier, more convenient way to manage how you pay for online purchases, on your own terms.
Affirm is a payment option you’ll see when you check out your cart at many online shopping sites. It’s especially useful for large purchases such as furniture and mattresses because it lets you pay them off over a period of time (usually three, six, or 12 months). Annual percentage rates (APR) range from 0 to 30% and you’ll always be shown upfront the total amount of interest you’ll pay. Affirm does not charge any additional fees.
You can apply for a loan as you’re shopping at one of many Affirm’s partner stores, which include women’s and men’s fashion, furniture, sports and fitness, electronics, jewelry, and watch brands.
When it comes time to pay, you’ll see something like the below:
From there, you can create an account, get approved for a loan, and pay off your purchase at a pace you’re comfortable with.
You can see which online retailers accept Affirm below.
They’re divided by category and we’ve also designated which ones offer loans starting at 0% APR with an asterisk.
While there are some more established companies, many are up-and-coming startups that are changing the way you shop for things like shoes, glasses, and home goods. Partnering with Affirm is just another way they’re helping to modernize and simplify the online shopping experience.
Though Florida and Texas have no personal-income tax, they still have to generate state revenue – so they hike up other types of tax, Alan Goldenberg, a tax principal at Anchin specializing in state and local tax, told Insider.
And even if you move to a low-tax state, you’ll still have to pay federal taxes, he added.
Over the past decade, Florida’s population grew by 14.6% and Texas’ by 15.9%, according to US Census data. Both are around double the 7.4% rate of overall US population growth.
Meanwhile, California’s population grew by 6.1% and New York’s by just 4.2%.
And many of the super-wealthy are making the move to these low-tax states. Tax isn’t the sole reason why – but it is a “big part of the conversation,” Goldenberg said.
New York Gov. Andrew Cuomo plans to bump up personal-income tax for the wealthy to cover the state’s $15 billion deficit after its revenue fell during the pandemic. Combined with local taxes, New York City’s top earners would have to pay 14.7% income tax – which would be the highest rate in the US above California’s 13.3%.
People can make “significant tax savings” by relocating, Goldenberg said.
As well as considering these taxes, people have to watch out for whether they could still be charged in the state they moved from – known as their historic state.
“Just because you move out of the state doesn’t mean you may be totally done being taxed by that state,” Goldenberg said.
“There may still be some tax exposure,” he said, pointing out that people who own businesses in their historic state will still have to pay tax there.
Migration is leading to “significant revenue losses” for high-tax states, Goldenberg said. These states are increasingly chasing up people to check whether they have fully moved away, and are getting more aggressive in their approach, he said.
Because of this, people need to have a clear action plan and decide whether they want to keep, sell, or rent out the house in their historic state, Goldenberg said.