Ray’Chel Wilson
Why remembering the destruction of Black Wall Street is the key to rebuilding.
When Loula T. Williams and her husband opened their third theater in Tulsa’s Greenwood District in 1921, they practiced disciplined budgeting principles that still resonate a century later. Historical records show the couple meticulously tracked expenses and prioritized financial obligations before pleasures, building a path to becoming self-made millionaires.
Weeks later, a white mob destroyed their theaters, along with 35 blocks of what historians at the Tulsa Historical Society and National Endowment for the Humanities have described as the nation’s wealthiest Black neighborhood. But the financial principles that built Black Wall Street, intentional budgeting, strategic debt management, and wealth-building through multiple income streams, survived. And they’re exactly what communities in Cleveland, Toledo and across the Midwest need to build, generational wealth today.
The wealth gap keeps growing
Financial literacy remains a barrier to wealth-building in Black communities. The Federal Reserve’s 2023 Survey of Consumer Finances indicates the median white family holds six times the wealth of the median Black family. Research from the Institute for Policy Studies shows the median Black family saw its wealth drop by more than half between 1983 and 2016, while white household wealth increased by 33%.
But the entrepreneurs of the Greenwood District proved that strategic money management,budgeting, debt reduction, and investment, can create thriving Black economic ecosystems even under Jim Crow. Their lessons offer a roadmap for Cleveland residents navigating today’s wealth gap.
The 30-20-50 rule for building steadily
Loula T. Williams and her husband John became self-made millionaires in Greenwood by meticulously tracking every cent and prioritizing financial obligations before pleasures. Their disciplined money management laid the foundation for their financial independence and enabled them to build a lasting business legacy.
Their success demonstrates what intentional budgeting can achieve. One effective approach is the 30-20-50 rule: allocate 30% of income to wants, 20% to savings or investing, and 50% to needs. This creates a sustainable spending framework that prevents overspending while building savings. For Cleveland families living paycheck-to-paycheck, this simple formula can be the difference between debt and financial stability.
An alternative method, zero-based budgeting, assigns every dollar a specific job. Both strategies require the same discipline that made Greenwood’s economy thrive: intentional planning.
Paying down debt the Greenwood way
Dr. A.C. Jackson, a prominent Greenwood physician who died defending his home during the 1921 Tulsa Race Massacre, taught his community about strategic debt repayment. His approach mirrors two methods financial advisors still recommend today.
The avalanche method tackles high-interest debt first, saving money on interest payments over time. The snowball method pays the smallest debts first, creating psychological wins that build momentum.
For Cleveland residents struggling with credit card debt, medical bills, or student loans, choosing the right strategy depends on personal circumstances. Those motivated by quick wins may prefer the snowball approach. Those focused on long-term savings should consider the avalanche method.
Both require commitment. Both work. The key is starting.
Building passive income streams
O.W. Gurley didn’t just own the Gurley Hotel. He invested in real estate across Greenwood, creating multiple income streams that generated wealth even while he slept. His strategy illustrates the difference between working for money and making money work for you.
Passive income, such as earnings from investments, rental properties, or royalties, requires little ongoing effort once established. Residual income, like commissions from ongoing sales, demands continued work. Understanding the distinction helps Cleveland residents identify wealth-building opportunities.
For beginners, the U.S. Securities and Exchange Commission recommends starting with low-risk options like dividend-paying stocks or exchange-traded funds (ETFs), which offer diversification without requiring deep market expertise. Those with higher risk tolerance might explore individual stocks or real estate investment trusts.
The critical rule Gurley likely followed: never enter an investment without an exit plan. Know when to sell, when to hold, and when to walk away.
Protecting your intellectual property
Mabel B. Little, a poet and civil rights activist who understood the value of creative work, taught her community that intellectual property represents wealth. Her copyrighted writings generated income long after their initial publication.
Cleveland’s growing community of artists, writers, and creators can follow her example. Copyrights protect original creative works like music, writing, and visual art. Patents protect inventions and processes. Trademarks safeguard brand names and logos.
Registering intellectual property ensures creators receive compensation for their work and can build residual income streams that support financial independence.
From Tulsa to Toledo to Cleveland
The Greenwood District’s destruction in 1921 wiped out an estimated $200 million in Black property in today’s dollars, according to the Harvard Gazette’s analysis of recent economic research. Yet, according to the U.S. Commission on Civil Rights, a 2001 state report estimated documented losses at just over $30 million in today’s dollars, based largely on denied insurance claims. In both accounts, insurance companies refused to pay most claims, and the city never compensated survivors, even as the same financial principles that built Black Wall Street remained intact in Black communities across the country.
Personal financial literacy alone won’t close the racial wealth gap. Systemic change is also necessary. The Institute for Policy Studies proposes structural solutions including baby bonds programs, significantly raising the minimum wage, investing in affordable housing, and Medicare for All. These policy changes would address the historical injustices that created the divide.
While Cleveland residents advocate for these broader reforms, they can also practice the individual strategies that built generational wealth in Greenwood. Just as Black entrepreneurs in Toledo apply the same discipline Loula Williams employed a century ago, families in Cleveland can use these tools to fight the stagnation of generational wealth for financial empowerment.
The path forward requires both individual action and collective advocacy. It requires understanding that personal finance is personal. Risk tolerance, goals, and timelines vary by individual. However, the fundamentals do not change.
Budget intentionally. Eliminate debt strategically. Invest wisely. Protect your assets. Build multiple income streams.
These are not just historical lessons. They are survival strategies for building Black wealth in 2026.
Ray’Chel Wilson is a Certified financial therapist and FinTech founder.
