From Survival to Thrival: How Immigrants Can Achieve Financial Freedom in the Diaspora

As immigrants, we come to the diaspora seeking better opportunities and a brighter future. We leave behind our families, friends, and familiar surroundings to pursue our dreams. However, living in a foreign land can be harsh, and financial struggles are a common experience for many of us. The stress of making ends meet, dealing with debt, and struggling to send money back home can be overwhelming. But what if I told you that financial freedom is within your reach? In this post, we'll explore the secrets to achieving financial freedom as an African immigrant in the diaspora.

The Struggle is Real

We've all been there - working multiple jobs to make ends meet, living paycheck to paycheck, and struggling to send money back home to our loved ones. The stress and anxiety can be overwhelming, and it seems like there's no way out. But there is hope. We don't have to be held back by our financial circumstances. We can break free from the cycle of poverty and debt and achieve financial freedom.

Breaking Free from the Cycle

The first step to achieving financial freedom is to break free from the cycle of poverty and debt. This means creating a budget, saving regularly, and investing in yourself. It's not easy, but it's worth it. We need to take control of our finances and make conscious decisions about how we spend our money. We must prioritize our needs over wants and sacrifice today for a better tomorrow.

Building Multiple Income Streams

Having one source of income is not enough. We need to diversify our income streams to achieve financial stability. This could mean starting a side hustle, investing in real estate, or pursuing alternative sources of income. We must think outside the box and explore different ways of making money. We can't rely on just one source of income to meet our financial needs. Whatever side hustle you decide to pursue, avoid the six big mistakes people make when creating side hustles, as this Nasdaq article outlines.

Investing in the Future

Investing in the stock market, starting a business, or pursuing higher education can seem daunting, but it's essential for achieving financial freedom. We need to think long-term and make sacrifices today for a better tomorrow. We need to invest in ourselves and our future. We can't afford to be complacent and expect things to get better on their own. We need to take action and make things happen.

Overcoming Cultural and Social Pressures

As immigrants, we face unique cultural and social pressures that can hinder our financial progress. We may feel obligated to send money back home to our families, even if it means sacrificing our own financial well-being. We may feel pressure to maintain a certain image or status in our community, even if it means going into debt. We need to find a balance between our cultural obligations and our financial goals. We must prioritize our financial well-being and make decisions that align with our values and goals, even if it means saying NO to those we love.

Achieving financial freedom as an African immigrant in the diaspora requires hard work, dedication, and a willingness to take risks. It requires breaking free from the cycle of poverty and debt, building multiple income streams, investing in the future, and overcoming cultural and social pressures. But the reward is worth it—financial freedom, peace of mind, and the ability to live on our own terms.

Join our community of like-minded individuals on the same journey, and let's achieve financial freedom together!

5 Ways Immigrants Can Build Wealth Fast

Most immigrants especially first-generation immigrants carry they burden of taking care of not only their nuclear family but the needs of their parents and extended family as well. So building wealth as an Immigrant becomes challenging because the needs of the family often supersedes the income that comes in.

Because of the cultural and financial demands of taking care of the extended family, the importance of building wealth as an Immigrant is even more important. The Urban Institute estimate that it cost about $70,000 to take care of a parent in the US. This kind of financial burden can cause emotional, and physical stress and even ruin relationships.

On the flip side, the absence of financial stress will build stronger family and community bonds.

There are 5 things that are necessary for an immigrant to do as they embark on their wealth building journey. They are :

1- Save at least 15% of annual household income

This number, based on a Fidelity study on somebody who started saving at 25 years. Unfortunately most first-generation immigrants immigrated at a later age. So they are already running behind on time to invest.

The truth is, most immigrants might not be able to contribute 15% of their income into their retirement account. The best thing would be to get on a budget and just start as soon as possible

2- Save money in Tax-sheltered accounts first

The contributions and earnings in tax-sheltered accounts will not be taxed until the money is withdrawn from the account. If your company offers a 401K plan , consider taking at least the match. This is basically FREE money given by your company so turning it down is walking away from free money.

Also make use of your tax favored accounts like your ROTH IRAs and HSAs accounts 

1. Roth IRA contributions are after tax but you withdraw earning tax-free.

2. HSA- Offers triple tax benefits.  You put money tax free, it grow tax free and you withdraw the money tax free. Money can be used for qualified medical expenses. 

3- Automate your savings 

Automate your savings from your paycheck directly to your savings account

Ensure that you are paying yourself first but putting money in your retirement savings. As we know, life happens. How then can you reduces the chances of you not choosing to save? You Automate.

Have the money withdrawn directly from your paycheck before the rest hits your bank account. Removing the likelihood that you might forget or be influenced to redirect the funds somewhere else makes automation one of the important secrets to saving money.

4-Have a Fully Funded Emergency Fund in Place

You do not want unforeseen circumstances to throw you off your game as you try to build wealth. Have at least 3-6 months of your monthly expenses saved in a separate account for those moments when unforeseen events will happen. You will want to have money for those unexpected emergencies or calls from family members you take care off. In order to be able to save money, you might have to cut back on your expenses for a little while.

5- Get out of Debt

Get out of Debt. Take Back your Income

Debt ties up your money you should be investing. Debt steals time and money from you and prevents you from making use of compound interest. If you bring more of your income home you can bring home, the more money you have to invest.

So before you start saving for retirement and building wealth, you want to have a retirement plan and avoiding financial pitfalls.

Building wealth and trying to navigate a new financial system can be challenging. The most important thing is to make a plan and just START.

Immigrants and Financial Freedom

Immigrants have such a great work ethic. Working hard and always showing up. We come early, stay late, work from home and take on extra projects. We miss out on kids activities to catch up on work requirements. We go above and beyond what is required even when we get passed on repeatedly for a promotion. Our financial needs pressure us to accept being continuously overworked even when undervalued and underpaid.

Our parents expect us to be the smartest, earning more degrees and titles. So we have been conditioned to work hard and accumulate accolades. A study found that more than 40% of African immigrants had 4 or more years of college and they were more educated than native-born Americans.

The unfortunate thing about the title and fancy degree is, in the US they are accompanied by student loans and a lifestyle that society expects us to uphold. Maintaining that lifestyle sinks us further into debt. 

At the time most immigrants get to the US, they are racing against a financial clock. In order to meet up, they need to double up on building wealth. Something that unfortunately happens much later than it should; further delaying the chances of living the life they truly desire.
According to the Survey of Income and Program Participation, the overall median wealth of U.S.-born couples is 2.5 times the median wealth of foreign-born couples. The gap is even bigger for migrant singles compared to U.S.-born singles, who hold three times more median wealth. 

Armed with a dream, and a plan to work hard, most of us jump from the plane right into whatever job is readily available. We do not spend the time to figure out a plan for the money we will make or how we intend to make it work for us. We just want to work. Besides, the needs of the family back in our countries of origin do not give us enough time to set your financial goals. There are mouths waiting to be fed, and debts to be paid.

To prevent feeling financially trapped , we need to empower ourselves. 

Financial education is very important.

Getting out of debt and building wealth allows us to choose the life we want. We get to plan our life and take the time to choose the career we have always wanted. 

How many of us immigrants would rather have a different career ? 

🗣Being debt-free offers us that freedom. 

If you learn to manage what you have, God will pour more into your life. Don't try to pull everyone with you through the little glimpse of a hopeful future coming through the crack of the window. Build yourself up financially, so you can support the rest of your family by opening the door for all to go through.

Financial independence gives you freedom