Dr. Lorie A. L. Nicholas found herself stuck in a rut after purchasing her first condo. The mortgage doubled on her, and her credit card interest rates spiraled out of control. The way that she got herself in was the same way that she was going to get out. So, she began researching and attending workshops and programs on how to get out of debt.
As she implemented what she had learned, she was able to reduce her credit card interest rates, which had been as high as 38%, to 5%, and ultimately save her home. Today, as the Financial Recovery Doctor, she helps people who may be embarrassed by their hidden debt and are tired of living paycheck to paycheck, and teaches them how to kick debt to the curb, learn how to live financially stress-free, build wealth, and create the freedom to chase their wildest dreams.
BLACK ENTERPRISE: Why do you think that financial education is so critical today?
Dr. Nicholas: Each year, the American Psychological Association surveys “Stress In America.” Every year, concerns related to financial stress have continued to rank high. Additionally, when looking at New Year’s Resolutions, one of the top ten goals people set is to manage their finances.
Financial education is one of those life skills that will continue to be ranked among the most critical knowledge. Money is an exchange that impacts every aspect of our life and determines the type of service you get.
–Try going to a doctor, before you can even see a doctor, you are asked whether you have insurance.
–When you go into the grocery store, what you buy will be based on how much money you have.
–If your car breaks down, depending on the cost, this will determine whether you can get your car fixed today or six months from now.
–The amount of interest you pay on a loan will be determined by your credit score (partially, how you pay your bills).
In general, life does not have to be doom and gloom. However, it does require preparation, and this preparation should not start while you are in the midst of a crisis, but instead well before the crisis ever occurs. This is why financial education is so critical.
BLACK ENTERPRISE: Why do you think that financial literacy is still lacking in the African American community?
Dr. Nicholas: Several research reports highlight the disparities that exist for the African American population. We can look at the level of pay. Over the years, studies have indicated that African Americans receive the lowest incomes. They also receive the highest interest rates due to how credit card usage is handled. There is also a significant gap in financial knowledge and implementation. For example, when investing, you must be able to trust the person handling your money. There are many myths, misperceptions, and miscommunications surrounding money. In addition to this, African Americans tend to have less money saved up for emergencies.
As a result of these disparities, there are groups and organizations dedicated to addressing these issues. For instance, take BLACK ENTERPRISE. Their magazine is always filled with articles related to financial empowerment. The information spans a range of topics, from personal finance to entrepreneurship. In every issue, they provide life scenarios in conjunction with the Declaration of Financial Empowerment. Each month, they address a life scenario related to one of the 10 Declarations. As a result of these declarations. I, in turn, also created a pledge, not to be used separately from the declarations outlined in BLACK ENTERPRISE, but to be used in conjunction with them. My mission is to create a movement of 10 Million Strong, a financial pledge to overcome economic hardship and eliminate debt.
In terms of the focus of my business, it is directed at people who are struggling financially, which unfortunately is a common experience for many Black and Brown families. Due to the significant level of disparities across various areas of healthcare, education, and employment, these sectors are further impacted by economic, social, political, and environmental factors.
BLACK ENTERPRISE: Can you share some tips on how to get your finances in order?
Dr. Nicholas: B.A.C.K. T.O. B.A.S.I.C.S.
- B – Budget Regularly: Create a detailed budget and review it frequently to stay in control of your spending.
- A – Automate Savings: Set up automatic transfers to savings and investment accounts to make saving effortless.
- C – Cut Unnecessary Expenses: Identify and reduce non-essential spending, such as unused subscriptions or luxury items.
- K – Keep Track of Debt: Monitor and prioritize paying off high-interest debts to improve your financial health.
- T – Track Your Progress: Review your financial goals and regularly check how close you are to achieving them.
- O – Organize Finances: Simplify your accounts, automate bill payments, and streamline your financial management.
- B – Build an Emergency Fund: Save 3-6 months of living expenses to safeguard against unexpected financial challenges.
- A – Assess Your Credit: Monitor your credit score closely and strive to improve it by paying bills on time and reducing your credit card balances.
- S – Save for Big Purchases: Plan ahead for major expenses, such as vacations, home improvements, or a new car, by gradually setting aside money.
- I – Invest for the Future: Contribute to retirement accounts and consider long-term investments that align with your financial goals.
- C – Control Impulse Spending: Avoid making spontaneous purchases that can disrupt your budget and savings plan.
- S – Stay Financially Educated: Continuously learn about personal finance, investments, and new financial tools to make informed decisions.
By following these principles, you can get “Back to Basics” with your finances and build a solid foundation for your financial future.
Website: www.TheFinancialRecoveryDoctor.com
RELATED CONTENT: Honey Beez Heartbreak: Boyfriend Charged With Capital Murder In Slaying Of Alabama State University Dancer
