These financial principles moved this CEO from a $40K salary to millionaire status

Like many people of African descent, the founder of Oakland Consulting Group, Cedric Nash, was caught in the bracket of those struggling to find a well-paying job, better benefits, and job stability. He was earning less than $40,000 a year while working as a consultant.

Though he wasn’t happy with these benefits, he lacked the financial literacy to break out of the maze. However, his journey to success began when he met four millionaires in his neighborhood – who reshaped his mindset toward wealth building, according to Author Hour.

Cedric had his shot at wealth-making when his grandmother passed away and bequeathed the family her $43,000 savings. After paying for her mortgage and funeral expenditure, the family was left with $30,000, which he and the other grandchildren split among themselves. He decided to put his $10,000 share in a Charles Schwab account, which by the age of 31, had turned his $10,000 into millions, Anne-Lyse Wealth reported.

He soon began expanding his wealth by establishing a consulting firm called Oakland Consulting in 1997 – after working with the federal government, Fortune 500 company clients, and business executives. The company empowers its clients with literacy skills and wealth-building strategies through the use of technology and best practices. Today, Cedric’s company manages $90 million, with a staff strength of 300, according to Oakland consulting group.

Cedric broke the wealth gap with strategies underpinned by several principles to inspire people to invest smartly and live their dream life.

According to him, the first principle is to have the power of wealth. To be able to make wealth, it must be understood; one must know how to access it and also increase it. The path to financial independence is hinged on understanding wealth. If one can control the money they make, they can live the life they have always craved for. This, according to Cedric, requires shifting from living ostentatiously to investing toward a goal. Many black people, in his perspective, prefer showcasing their wealth to earn validation from society.  

According to the Center for American Progress, historically, Black people have struggled to secure well-paying jobs in the labor market compared to their White counterparts. They are saddled with poor benefits, job instability, and higher unemployment rates. This only mirrors systematic barriers that continue to persist and widen the racial wealth gap; barriers that Cedric hopes to tackle with his principles on wealth creation for the black community.

His next principle is to make wealth a goal; Cedric is of the view that if many black workers make wealth a goal and set their priorities towards it, they would either enjoy financial comfort and independence or become millionaires within a specified time frame, according to Business Insider.

The secret about financial independence often lies in how much a person makes, preferably millions of dollars. Cedric believes that with the required discipline, commitment, the right mindset, sacrifice, and patience, many individuals will be able to save a specified portion of their salaries over a particular period of time to make a million dollars.

A third principle, which notes another way to scale up investment, is to look for capital to invest. This could be additional income that is made from an extra job or optimizing output to earn more. The other option is to take loans from the bank to invest in a business venture. Cedric suggests that individuals must look at saving consistently to raise money for investment.

He references his grandmother who earned $200 per week but was able to save enough to pay off her mortgage and leave generational wealth for her grandchildren. It is the only money that people have control over compared to other alternatives.

The other principle Cedric believes will help many African Americans break the cycle of surviving paycheck after paycheck, is to prioritize investment. Irrespective of the fraction, there must be consistency in setting aside an amount for saving. He cautions against looking out for a quick way to make money.

Investment is a vehicle that progresses steadily with the expectation of making reasonable returns. Cedric’s preferable investment tools are company stocks with impressive returns on investment. Those that embrace this principle, will gradually close the racial gap that has always existed between the white minority and the black community.

His golden principle explains how African Americans can make wealth by venturing into entrepreneurship. A significant number of millionaires make their wealth from entrepreneurship. Wealth can be made when people operate their businesses and control their finances. Notwithstanding, entrepreneurship comes with its own challenges.

Therefore, African Americans who intend to venture into that space must brace themselves for the elements of surprise that come along with running their own businesses. Cedric recommends that the surest way to deal with such challenges as an entrepreneur is to take one step at a time and be good at promoting your business in your own circles. In spite of obvious obstacles, everyone has the potential of becoming a business owner.