7 Money Myths Latinos Need to Stop Believing

I have years of experience working with Latino immigrants and U.S.-born Latinos from impoverished backgrounds, and I’ve learned that we have so many advantages.  

We are survivors, business owners, and hard workers. We adapt to new rules and systems with patience, and we face obstacles without quitting, oftentimes avoiding the victim mentality and seeing challenges as opportunities.  

But many Latinos still feel stressed about money. UnidosUS reports that two-thirds of Latinos are worried about next month’s rent or mortgage payments.  

I like to say that most money problems aren’t math problems—they’re belief and behavioral problems. And many people in our community believe money myths that keep us stuck.  

In this article, I want to walk you through seven money myths that hold us back and how to overcome them.  

Myth No. 1: You Have to Make a Lot of Money to Build Wealth 

Growing up, many of us were taught that if we just earn more money, everything would be fine. But just because you make more money doesn’t mean you are wealthy. It’s not about the amount you make, but about what you do with that money that makes you wealthy.  

Let me share something with you: I work with young Latino stars—singers, actors, and entertainers. Some of them will just not take advice. I’ll have a 17-year-old client who earned $20 million in a year, and just like that, the money is gone. They tricked themselves into believing that they were “wealthy” when they only had money. Now, they started living a lifestyle they can’t sustain.  

Whereas some of my modest-earning clients have an investor mindset. They earn a heck of a lot less than $20 million a year, but they invest in themselves. They get certifications and degrees and stash away money from their paycheck in their retirement accounts.  

The fix: Working with a financial coach or financial therapist can help you reframe your thinking to move from a consumer/spender mindset to an investor/saver mindset. Don’t blow your money—invest it.  

If you get a new job where you’re making more money, or in the case of my young client, if you get a new contract that’s more money than you can ever imagine, try to avoid lifestyle creep and taking on a lifestyle that is hard to maintain. Building wealth is about habits, consistency, and intentionality.  

Myth No. 2: Saving Money Means You’re Depriving Yourself 

We might have learned that we only live once, so you have to live for the moment and for today. As a result, saving money for long-term goals feels pointless and like we’re depriving ourselves.  

While we are great at saving for short-term needs, according to LIMRA, our community struggles with long-term savings. But get this—our community lives longer than many other demographics. The American Heart Association reports that we have an average life expectancy of 77.7 years, while the overall life expectancy is 76.1. So planning for the long-term is important for our community.  

The fix: Think about your future self and how you want your future self to live. That makes it easier to put away money.  Start small and start where you are if you have to, but keep in mind that saving creates freedom and financial dignity for you in the future.  

Myth No. 3: When the Market Goes Down, I’ve Lost Money 

Before working in the financial services industry, some of my staff thought that the stock market was a gambling racket and that whenever it went down, she would lose money.  

She isn’t alone in that sentiment. Laura Martinez writes in Hispanic Executive that “I was raised to believe that the stock market was as bad as “el cuco.” And while 66% of the general population owns stocks, only about 28% of Latinos own stocks—and it’s because of these beliefs that are deeply rooted.  

My employee has since learned that it’s normal for markets to go up and down, and you don’t lose money just because it goes down, so long as you don’t panic and sell and you stay focused on your long-term plans.  

The fix: I always tell my clients to stay the course. Markets go up and down and reward patience over panic. Much like in the previous section, you have to think about future you and that life you want future you to have and stay focused on that.  

Myth No. 4: I’ll Start Investing When I Make More Money 

I’ve seen many Latinos say, “I’ll start saving or investing when I make more money.” 

I always say this: saving is important—but investing is freedom. And the only way to get that freedom is to start investing, even if it’s only a small amount to begin with. Building a habit that sustains matters more than putting away a big chunk sporadically.  

The fix: As with savings, you need to start where you are. I always say to automate everything. If you have an employer-sponsored retirement plan, sign up and contribute the maximum amount to get your employer match and pick a target-date fund. If your employer doesn’t offer a match, contribute as much as possible for you. It’s automatic and you don’t have to think about it. 

Myth No. 5: Someone Out There Knows What the Market Will Do Tomorrow 

There’s no reading tea leaves or crystal balls when it comes to the market. Nobody out there knows what the market is going to do tomorrow. Sure, people can make guesses—educated or otherwise—but nobody consistently knows what’s going to happen.  

But what we do know: the S&P 500 beats most professional money managers because markets reward patience.  

The fix: Don’t believe pundits or social media financial gurus who say they know. They don’t. Invest consistently and be patient instead of chasing predictions. Wealth is about process, not prophecy.  

Myth No. 6: You Need to Be Good at Math to Manage Money 

Many Latinos—77% to be exact—say their limited knowledge about finances is their top barrier to wealth. And there’s a longstanding thought that we need to be good at math to manage our money. That’s not true. This isn’t calculus. These are simple concepts: spend less than you make, save consistently, avoid bad debt, stay invested long-term.  

The fix: I wrote a few blogs last month about working on your mindset. Most everything that can sabotage you from achieving financial success is in your mind. Working with a coach or financial therapist can help you move past this mindset. It all boils down to this: financial success is behavioral, not intellectual. 

Myth No. 7: Once You Mess Up with Money, It’s Too Late 

This is the one that really frustrates me: there are many people who make big money mistakes and think it’s all over—that there’s no hope left for them to be wealthy. But that’s just not the case.  

The truth is that I’ve seen so many of my clients turn things around in their 50s and 60s and build the life and wealth that they want. I know that mistakes aren’t final.  

The fix: You need to reframe your thinking from all-or-nothing thinking. Know that your past mistakes don’t define or disqualify you from building wealth.  

The Bigger Truth: It’s Not Math—It’s Mindset 

Again, most money problems are belief and behavioral problems. But the good news is that beliefs and behaviors can be changed. 

We are building a Latino economic revolution by changing how we think about money. 

Start shifting your mindset today by joining my community, where you can work with me and your community to shift your beliefs and start building wealth.