#JefasCreatingImpact: The Wealth Building Edition

It's Financial Literacy Month and we're diving into what can make us millionaires.

Photo by Christine Roy on Unsplash

Hola familia,

I am super excited to bring you the first edition of #JefasCreatingImpact, an interview series of changemakers who are showing up for their community and doing things differently. Expect these in your inbox regularly - there are so many insights coming your way on a variety of different personal and professional development topics!😍

But before I introduce my first featured jefa, I want to talk about money. More specifically, the mindset I had around money up until a few years ago when I started my full-time entrepreneurial journey. I was afraid of talking about money, I didn’t think I needed to make money, and truthfully I never saw a future having money. Anything to do with money seemed…difficult.

Here are some of the things that I heard growing up that led me to be this way - I think a lot of you will be able to relate:

#1: Money doesn’t buy happiness.

Maybe it doesn’t, but it does create opportunity. Opportunities to create the life that we want - opportunities that of course I started yearning for as I got older. Money to go to the college I wanted, money to fund my music career, money to go to Mexico to see my family, etc. This mindset that I would never need a lot of money to be happy only created this limiting belief that I would never have money. Needless to say, that was not beneficial at all as I stepped into adulthood. Credit card bills stacked up, credit scores went down - but I thought I was happy. This caught up to me real quick.

#2: Wealthy people are evil.

I was afraid of making money because all of the rich people I encountered were mean. You can hear more about those experiences on this Nav it podcast episode, but in short, in an effort to continue being a “good” person, I decided that I didn’t need to make a lot of money. This mindset especially became a problem when I started a nonprofit organization that needed money in order to be able to do good things for good people. See the issue?

#3: Money doesn’t grow on trees.

True - it definitely doesn’t. But I also think that saying this prevents us from finding ways to make more money. Whenever I would find myself in a position that I couldn’t afford something, I assumed I would never be able to afford it because making that money would be difficult. I spent much of my 20s thinking that so many things were unattainable for me - until I started to educate myself about how to stop being afraid of money, how to get out of debt, and most recently how to invest, be prepared for retirement and more. Once I was able to envision the possibility of a different kind of lifestyle, I got to work and got cozy with my finances, read books and analyzed the root of my mindset issues - that was the beginning of my journey to financial freedom.

Some of the books that have changed my mindset (and life) are:

• You Are A Badass At Making Money by Jen Sincero

• We Should All Be Millionaires by Rachel Rodgers

• It’s About Damn Time by Arlan Hamilton

Additionally, I started to follow and have conversations with fellow Latina money:

• Lyanne Alfaro of Moneda Moves podcast

• Gigi The First Gen Mentor (Stay tuned for her book later this year)

• Linda Garcia

• AND….

That brings me to my first featured jefa who is a future millionaire on a mission to help her multigenerational community embark on the road to a million dollars through education, coaching and stories - ensuring that no familia is left behind.

Yoly M. Valencia

I’d love for you to meet Yoly M. Valencia, the CEO of Latinas Who Trade, financial strategist and author. A fellow Michoacana, amiga and client, she’s also a First-Gen Commercial Real Estate and Finance Professional with over 20+ years of experience in the banking industry. Follow her here.

Here’s what she has to say about how we can get our finances in order for ourselves and our families.

A: What is the number one personal finance topic you think isn’t talked enough about - specifically within the Latine community?

Y: It is hard to just focus on one topic as most topics overlap to really set a good foundation for financial independence and generational wealth. These topics that are not discussed enough within our community are:

• Retirement planning: Many Latine individuals may not have access to workplace retirement plans or may not prioritize retirement planning due to competing financial priorities. However, it's important to plan for retirement to ensure a comfortable and secure future.

• Investing: Investing can be intimidating, and many Latine individuals may not have the resources or knowledge to get started. However, investing is an important tool for building wealth and achieving long-term financial goals.

• Estate planning: Estate planning involves making arrangements for the transfer of your assets after you pass away. It's important to have a plan in place to ensure your assets are distributed according to your wishes and to minimize any potential tax implications and avoid probate where possible.

• Financial abuse and scams: Financial abuse and scams can disproportionately affect vulnerable communities, especially our community. It's important to be aware of common scams and to take steps to protect yourself and your finances.

A: Why do you think there isn’t much conversation around all of these topics?

Y: Most of us come from families that migrated from another country where the stock market and the opportunity to build wealth didn’t exist like it does here in the US. 

As you know, there are so many layers to the makeup of our community and so are the reasons behind the lack of conversation. Certain financial concepts may not align with traditional values or beliefs in the Latine community. Especially when we come from countries where banking systems are known to not be regulated as they are in the US or have previously experienced fraud and do not trust the system.  For example, investing may be viewed as risky or unfamiliar, while prioritizing family and immediate financial needs may take precedence over retirement planning. Historically, in the US, the financial system was not built for our community. The financial industry has not always been inclusive of marginalized communities, including the Latine community. This can lead to a lack of trust but also a lack of representation and resources, making it more difficult for individuals to access and engage with financial education and services.

For individuals who primarily speak Spanish or other non-English languages, there may be a lack of accessible resources and education in their preferred language. This can make it difficult to fully understand and engage with financial topics.

A: What are some challenges you’re seeing your clients (and members of our community) face because of this? 

Y: Without access to financial education or resources, some individuals in our community struggle to access financial services such as loans or credit cards. This can limit their ability to build credit and make large purchases, such as buying a home or car—which in return will have them paying high rents and potentially be taken advantage of.

Many of my clients 65 and older don’t have an adequate retirement plan, and while they are trying to play catch up some individuals may struggle to save enough money for retirement. This can lead to financial stress and insecurity in their later years.  In addition, this also leads to vulnerability to financial scams. Individuals who are not familiar with common financial scams may be more vulnerable to fraudulent activity. This can result in financial loss and damage to credit scores.

A: What are 3 actionable steps that readers of La Hoja can do in order to help tackle this issue immediately?

1. Start conversations with family and friends: Talking openly about personal finance topics can help break down cultural and language barriers and normalize discussions around money. Encourage family and friends to share their experiences and questions around personal finance, and offer to share resources or connect them with financial experts, like myself, if needed.

2. Begin a financial plan, taking the first step in building a financial plan will help educate you and lastly connect with a financial expert that can help explain products and resources in layman's terms.

3. You can contact me [wealthwithyoly@gmail.com]  for a discovery call and for a FREE financial Analysis. A financial analysis will give you a jumpstart your financial plan!🙏

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IN OTHER NEWS:

New Yorkers, there are still 10 tickets left for the Clarity + Strategy event on April 30th. I’m also offering reduced cost in person strategy sessions through the EventBrite so check that out and book ASAP!

Jefas who want to come to Mexico for the retreat and enjoy 5 days in paradise and community 😍 - I only have 3 spots left! Claim yours here.

COMING SOON: I will be officially taking on new clients and opening the doors to my ALAS program next week. I only have 3 spots available to start in May/June. Want to be the first to know? Fill out this application.

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As always, my virtual office doors are always open. I love hearing from you so please reach out if you have questions, or just want to say hi!

Until next time,