19 MONEY MOVES THE NEWLY DEBT-FREE MOREHOUSE MEN CAN MAKE

*Credit: The Atlanta Journal-Constitution*

Unless you live under a rock, you’ve heard by now that billionaire investor and philanthropist Robert F. Smith has pledged to eliminate the student loan debt of the entire Morehouse College graduating class of 2019. This unprecedented gift, valued at an estimated $40 million dollars, will help ensure that the graduating class of nearly 400 Morehouse men can enter their post-undergrad life on solid financial footing. The enormous economic impact that Smith’s grant will have on the financial futures of the class of 2019 cannot be overstated. Here are 19 things that the new graduates can now do because their student loan debts are eliminated.

1. BREATHE EASY

Student loan debt is one of the leading causes of stress for young working professionals, with 80% of borrowers citing it as a source of “significant” or “very significant” stress. And with mental health issues being a challenge for many Black men, the new Morehouse graduates have one less thing to worry about.

2. START AN EMERGENCY FUND

The average monthly student loan payment is between $200 and $300. Instead of having that money snatched by Sallie Mae each month, the Morehouse class of 2019 can now use it to set up an emergency fund. While some experts recommend having 3-6 months of living expenses stashed away, financial guru Suze Orman says that you should shoot for a minimum of eight months to one year of savings. Here’s how to get your emergency fund started in 3 easy steps.

3. PAY OFF OTHER DEBTS

Without a monthly student loan payment, graduates can make quicker progress on paying down other debts, like credit cards and car notes.

4. GET INSURANCE

Millennials already have a hard time affording health insurance, and under the Trump administration, the number of uninsured Black and low-income Americans has increased to levels not seen since 2008. If health is wealth, the Morehouse class of ‘19 is one step closer to being wealthy.

5. PURSUE A CAREER IN A CREATIVE FIELD

One of the main reasons for the lack of diversity in creative industries like film, TV, fashion, and media, is because entry and junior-level positions in these fields pay so little. This forces people from non-privileged backgrounds to pursue higher-paying jobs that often don’t feed their creative ambitions. If the next Spike Lee o Samuel L. Jackson is in the class of 2019, Robert Smith’s generosity will help make it possible for him to launch his career.

6. START THINKING ABOUT RETIREMENT

I know, I know—they just graduated! But it’s always good to begin with the end in mind, and the class of 2019 can now begin to consider prioritizing retirement savings. If they start putting some money away now, they’ll be set in their sixties.

7. GET AN INTERNSHIP

One of the ways that financially privileged young people get their feet in the doors of their preferred careers is by taking unpaid or low-paid internships and apprenticeships. Without the burden of student loans, more of the new Morehouse Men will have a chance to go out for those unpaid gigs, even if it means working a side job to pay the bills.

8. GO TO GRAD SCHOOL

Although many graduates with Ph.D. dreams and masters degree missions will have to take out student loans to attend graduate school, now they can do so without the burden of additional loans from undergrad.

9. TRAVEL

Studies prove that Black millennials love to travel, so now these fortunate Morehouse grads can afford to catch more flights without worrying about falling behind on loan payments.

10. FOLLOW PASSIONS

Whether it’s diversifying the world or rodeo like Ramontay McConnell, designing flawless floral arrangements like Bron “The Flower Guy” Hansboro, or breaking barriers in Nascar like Bubba Wallace, these young Black men will have a little more leeway to follow their hearts’ desires.

11. TREAT YO’ SELF

It’s important to be smart with your money, but when you work hard it’s okay to splurge every once in a while. Just don’t do too much, too often.

12. GIVE BACK

The rate of alumni giving at HBCUs is often underwhelming, but a lot of that is due to HBCU graduates being stuck paying off their student loans for years after they leave their institutions. With no student loans to settle, the Morehouse class of 2019 have the opportunity to break records and catch up to their Spelman sisters in alumni giving rates. Click here to make a gift to Morehouse College.

13. VOLUNTEER

If you can’t give your money, you can still donate your time. Hopefully Smith’s generosity inspires the class of 2019 to pay it forward by volunteering with organizations that uplift Black communities. Here are some ideas.

14. START A BUSINESS

While Black people are starting more businesses than ever in recent history, 80% of Black entrepreneurs say that lack of funding remains the biggest challenge to the success of their companies. Whether it’s pursuing their own business ideas or taking advantage of franchise opportunities, with the money the new Morehouse Men will save, it’ll be a bit easier to self-fund their ventures.

15. INVEST IN STOCKS

Robert F. Smith grew his wealth through smart investments, but you don’t have to be rich to begin investing in the stock market. And these days, there are so many websites and apps that make it easy to own a piece of your favorite companies. If they invest the money they’ll be saving wisely, one of the 2019 graduates could be the next Robert Smith.

16. BUY A HOME

Home ownership is one of the primary ways that Americans build generational wealth, but 83% of people ages 22-35 with student debt blame their educational loans on not being able to buy a house. The class of 2019 now have the opportunity to start saving for down payments on starter homes, and if they’re smart, they’ll make it a duplex.

17. SUPPORT FAMILIES

Many Black college graduates have more in common with Aunt Teri from Soul Food than they may realize, as studies show that Black people are more likely to have to financially support family members than other races. New Morehouse graduates, like this one, can now do so without it being less of a financial burden.

18. INVEST IN REAL ESTATE

Real estate investing is another way to build wealth, and smart Morehouse graduates can use the money they would have used to repay student loans to build their own real estate empire. Here are some practical steps toward that goal.

19. PLAN FOR 2029

One of the most liberating things about Robert Smith’s gift is that it gives the new Morehouse Men the ability to plan beyond their immediate financial needs. They have the ability to dream big about and plan for their financial futures in ways that many before them couldn’t. 10 years goes by fast (ask the Class of 2009 if you don’t believe me), so now is the time for the Morehouse Class of 2019 to start thinking about how they want their lives to look in 2029. We’ll all be watching and rooting for them.