These 3 Money Mistakes That Ended My Financial Stability as a Latina Entrepreneur – Here’s How to Avoid Them
The views expressed by the business participants are their own.
Building a business is an exciting but often confusing journey. Some months, you ride high, you see growth and momentum; in other months, things slow down, leaving you stressed and questioning your financial stability. But, as a Hispanic entrepreneur, this rollercoaster can be a silent weight, the voice in your head sometimes talking about your partner, your parents or friends, reminding you that the results are still waiting. But mostly, your own voice.
Let’s be honest: Inconsistent cash flow is a big challenge. There’s no way to find financial peace if you feel like you’re on top of the world one month, and the next, you’re staring at your expenses, wondering how you’re going to pay for them. This inconsistency affects more than just your bank account; it interferes with your peace of mind, making it difficult to plan for the future.
I know you are determined to make it work even though sometimes you think that giving up your monthly payment will be enough. However, in my experience, there is not enough guidance that speaks directly to the challenges we face as women of color and Hispanic entrepreneurs. When I first started, resources were scarce, and running a business while fighting for financial stability was a huge challenge without a strategy that took into account who I am as a person, my beliefs, my inner limitations and a strategic way to get there. I made mistakes that delayed my financial stability. But through those setbacks, I learned lessons that helped me on my way to success — lessons that can help you avoid the same pitfalls and get there faster.
After all, we all benefit when this information is shared. For example, Latina entrepreneurs represent 16% of all women-owned businesses in the US and generate more than $65 billion in revenue in a single year. Think how much more we could accomplish if we had access to the right tools and information from the start.
Let’s dive into the three biggest mistakes that can derail your financial stability – and, most importantly, how to avoid them.
Related: How My Hispanic Heritage Driven My Journey as an Entrepreneur and Leader
Ignoring the importance of financial education as a business owner
We are making progress in financial literacy as a community. However, when you go into business, a new level of financial education is required, one that many of us did not grow up reading or seeing, yet it is very important. Consider that for most of our lives, we have worked from the perspective of consumers; we have managed our funds and responded to the money from the “buying” side, looking for ways to increase the amount of money we have (discounts, sales, promotions, small budgets, empty costs, etc.). But if you are a business owner, you must master the “sales” side. It is a new concept that requires a deep understanding of how money flows.
For example, understanding cash flow, pricing strategy, negotiation style, tax planning, retirement strategies and investments is no longer a nice to have but an important step if you want to grow as a business owner. If you don’t fully learn about these areas, you are limiting your growth and putting your business at risk. Avoid falling into the trap that as long as you make money, you’ll be fine because it’s not just about making money; it’s about how that money is managed, reinvested and saved.
How to avoid it:
Start prioritizing financial education immediately. Find resources that cater specifically to entrepreneurs. Take courses, attend workshops or find a mentor who can guide you in business finance. Knowledge in this area will empower you to make better decisions and accelerate your path to stability.
Related: Financial Literacy Basics Entrepreneurs Should Know
Carrying shame and guilt about income
For many of us, especially in the Latino community, there is a deep cultural discomfort around money. We grow up hearing messages like “Get money, but not so much that it will make you a bad person,” or that talking about money is stupid, but we are also taught to handle it with great grace, which means that our desire remains strong. . These messages often translate into unconscious habits with money and feelings of shame or guilt, especially when we start to earn more or see financial success in our businesses.
I distinctly remember feeling guilty for charging what my services were worth. It took me a long time to realize that this mindset was hurting my financial well-being, and it was based on unspoken beliefs and feelings that I grew up with.
How to avoid it:
It’s time to reframe your relationship with money and directly question and shape your beliefs, ideas and feelings about earning and managing money for financial growth. Financial independence and wealth allow us to create opportunities for ourselves and our community, so there is no room for feelings like shame and guilt in our path.
Surround yourself with people who reinforce this belief and help you build confidence in your ability to achieve.
Related: ‘Financial Goals Fuel Life Goals.’ These Top Money Secrets Can Make You Happier and More Successful, According to Experts.
Breaking the connection between identity and money
As a Latina entrepreneur, you may also experience a conflict between your cultural identity and your financial goals. Many of us have been raised with social and collective welfare values, which may seem at odds with personal financial success. We may fear that the pursuit of wealth will distance us from our roots or make us seem completely out of touch with our culture.
This disconnection can prevent you from stepping fully into your role as a business owner. I have seen this tension in myself and in others, the feeling that if we become too successful, we might betray the way we were raised. But that is not true.
How to avoid it:
Financial success is a cultural win, and if we have more pictures and examples that go along the way, it will be more common for those who come to replicate and create new normal ways to be financially independent.
You can connect deeply to your values - and I highly encourage you to do that – while also building wealth. Embrace your individuality as part of your entrepreneurial journey and allow it to drive your success.
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