In its State of Black America 2009 report, the National Urban League examines challenges President Barack Obama's administration must address. The report includes essays by leading scholars, analysts, and practitioners, asking their government to respond to their concerns — and offers its specific recommendations for effectively tackling these issues. In his essay, Black Enterprise publisher Earl "Butch" Graves Jr. explains why "economic prosperity is vital to African-American families and explains how minority families can build wealth and transfer it to future generations." Racial barriers and attitudes traditionally have complicated African Americans' path toward financial empowerment, with the ramifications reaching well beyond our earning power. However, if we are able to close the wealth gap–the stubborn imbalance in the net worth of African Americans versus that of white Americans–then we can finally begin to bridge those other persistent disparities and cure the ills that plague our community. Make no mistake, this wealth chasm between African Americans and the majority is no mere perception; it is a stark reality. Nationally, the typical African-American family today possesses less than 10 percent of the net worth of the average white family.' Almost 30 percent of black families have zero or negative net worth. And far fewer blacks than whites benefit from inherited wealth or assets. Until recently, these figures represented millions of black families walking a financial tightrope. Now, with the economy in freefall–and jobs, 401Ks and available credit disappearing like vapors–our increased vulnerability has plunged many of us into a state of crisis. Some are facing bankruptcy and the possibly losing their homes, while others may never own a home because the capital and credit history necessary is so out of reach. The price to be paid for this level of economic disparity is always steep. The implications here go far beyond the welfare of the families involved, however tragic the individual circumstances. What's really at stake are the health and stability of the African-American community as a whole and the pace of our progress in America. The new Obama administration recognizes this disparity. The president's 2010 budget, released on February 26, 2009, contains a section "Growing Imbalance: Accumulating Wealth and Closing Doors to the Middle Class," in which it is noted that the wealthiest 10 percent of households hold 70 percent of the total wealth. The combined net worth of the top one percent of families was larger than that of the bottom 90 percent and the top one percent. 3 But while it is important for the administration to advance innovative policies that close these disparities, the responsibility does not lie solely with the government. Bottom line: If we ever hope to strengthen our families, communities and institutions, then we must adopt and apply principles to build, keep and transfer wealth. Since its inception more than 40 years ago, Black Enterprise magazine has stressed economic fundamentals to our readers–saving, smart investment, the responsible leveraging of credit and home equity. At the same time, our agenda has always been informed by the social realities that inform the lives of African Americans. In recent years, we've stepped up our efforts to help the widest possible income spectrum of African Americans gain that well-deserved slice of the American Dream with our "Black Wealth Initiative." Conceived to encourage our readers to make a firm and binding personal commitment to sound financial practices, this initiative called for participants to literally declare their financial independence, pledging to pay themselves first, make responsible homeownership a priority, and develop a systematic program of saving and investing to secure their families for generations to come. In framing this concept for the Black Wealth Initiative, publisher, Earl G. Graves, Sr., made the following assertion: "Our initiative must be to create wealth by building the cornerstones of economic empowerment: education, equity, enterprise and excellence. It requires that we be aggressive even to the point of zealotry." Since we developed that program, the dynamics of wealth building have changed significantly. Wealth preservation has emerged as an even more urgent priority in the wake of the current financial crisis. In the second half of 2008, the American public has watched the financial system shaken as century-old institutions have been severely weakened or failed. The plunge in housing prices has caused some homeowners to deal with an equity deficit in which they are paying mortgages for homes that are worth less than when they first purchased the properties. The increased volatility of the stock market continues to make investors jittery and more risk averse. It's understandable considering that some market indices have tested their historic lows in recent months. For instance, in late November, the S&P 500 marked an annual decline of 48.8 percent, the worst yearly percentage drop in 80 years.`As for the Dow industrial average, it dipped below 8,000 -- its lowest level in more than a decade. Along with these tumultuous times, there is a new generation of young entrants into the workforce who bring with them uncertain expectations of what the future holds. In response to these developments, Black Enterprise has taken what we believe to be the next logical step in the evolution of our original Black Wealth Initiative. We call it Wealth for Life, and the emphasis here rests squarely on financial discipline. Through 10 newly modified principles, we offer African Americans a step-by-step guide to responsible saving, investing and spending in order to build wealth that can be passed on to future generations. Through consistent application of these principles, families will be able to establish a viable financial legacy, regardless of what the economy and financial markets look like. The 10 Wealth for Life principles are: 1. Live within your means. Not just African Americans, but the nation as a whole has been living precariously on credit for far too long. Well, the bill has come due, leaving millions of families drowning in sky-high interest payments. Recovery starts with making an honest assessment of income versus debts and keeping spending strictly within the bounds of what you earn. 2. Maximize your income potential through education and training. Whatever your profession, the need to keep pace with technology and emerging economic trends is essential to staying competitive and enhancing your value in the marketplace. Set aside space in your schedule and your budget every year for skills building – and that includes increasing your financial literacy as well. 3. Effectively manage your budget, credit, debt and tax obligations. It's estimated that Americans lose a significant portion of their dollars because they do not develop a budget, and the current credit crunch has made it even harder for families to access emergency capital. Only those with exemplary credit scores are able to secure home or business loans. 4. Save at least 10 percent of your income. If the idea of saving 10 percent seems impossible, then it's time to rethink your lifestyle and strip away nonessentials. As long as your spending exceeds your income, you will never be able to accumulate wealth. Pay yourself first. 5. Use homeownership as a foundation for building wealth. Even in the current downturn in the housing market, homeownership remains the key to wealth accumulation because it allows you to build equity that can be leveraged to further your financial goals. In fact, most African Americans have their assets in their home. It's essential, however, to approach homeownership responsibly. Never buy more house than you can afford and keep a sharp eye on trends that affect home value. 6. Devise an investment plan for retirement needs and children's education. According to a recent study on black investing conducted by Ariel Investments and Charles Schwab, one area where African Americans are on equal footing with whites is enrollment in employer-sponsored defined contribution plans. About 90 percent of working blacks and whites participate in a 401(k) plan. Unfortunately, blacks on average contribute half as much, resulting in a far smaller nest egg than their white co-workers. At the same time, we are half as likely to identify retirement as an investment priority and lag behind when it comes to owning stocks and mutual funds. Clearly African Americans will have to adopt a more diverse, informed and disciplined approach to investing, especially if we expect to afford the ever-rising cost of higher education for our children. 7. Ensure that your entire family adheres to sensible money management principles. You're never too young or too old to learn the value of a dollar and how to spend responsibly. View your child's weekly allowance or that first savings account as an opportunity to impart valuable lessons in how to save, invest and build on the money they earn. 8. Support the creation and growth of minority-owned businesses. At a time when an African American of outstanding ability and character can be elected president, there are no more excuses when it comes to finding African-American ventures deserving of our patronage and investment. We are always stronger in partnership than when we stand alone. 9. Guarantee that your wealth is passed on to future generations through proper insurance and estate planning. When it comes to the creation and nurturing of wealth, the generational barrier may be the last, great hurdle for African Americans. Now's the time to sit down with a smart estate planner to ensure that you will pass on to your children a legacy to build on instead of debts. 10. Strengthen your community through philanthropy. Success, ultimately, is the opportunity to give back. Remember, the civil rights movement didn't just happen; it was largely underwritten by African-American entrepreneurs. As successful as these men and women were as individuals, they saw it as their responsibility to contribute to the social advancement of African Americans as a whole. Today, we need these same types of social, economic and political partnerships if we are to overcome the many challenges we face. Economic success and financial independence give us the power and the freedom to be effective, valued partners in this shared effort. These 10 principles are designed as a set of guidelines for creating wealth in the midst of the day's economic challenges–wealth that can be maintained and passed on for the benefit of future generations. Much like the times we find ourselves in, they demand our vigilance and sacrifice, and our commitment to success over the long haul. Wealth building is not a sprint; it's a marathon. It's a race that is in our power to win. Earl "Butch" Graves Jr. is the publisher of Black Enterprise.