Take Control of Your Finances: A Guide for the Latino Community in the United States

We Latinos are the backbone of the U.S. economy. We excel at leaving home every day to earn money—but let's be honest, we struggle to keep it.

Several months ago, I read a statistic that said Latinos have a purchasing power of $1.7 trillion, but only 21.7% have at least $1 saved for retirement.

I can confidently say there’s a solution to this — and it’s called Financial Education.

And since October is Financial Planning Month, I want to share with you 5 healthy financial habits that we should all develop and strengthen:

1. Know Your Numbers: Create a Budget

When we don’t have a budget, our minds operate on autopilot, and we end up spending money we don’t even have yet. We buy what we want, not what we need.

A budget is your financial shield when it comes to managing your money. It’s important to follow these 3 simple steps each month:

1. Track Your Income: How much money is coming in and when.

2. Track Your Expenses: How much is going out, why, and when.

3. Make a Payment Calendar: Record your income and expenses to understand your weekly balance and gain better financial control.

2. Save to Reach Your Financial Goals

Set aside at least 10% of your income each month to create savings for the goals you one day wish to achieve. This concept is also known as “Paying Yourself First.” It’s a simple rule that will help you feel more prepared.

3. Stay Away from Debt

When we have financial obligations, it means that money isn’t working in our favor. Getting out of debt as quickly as possible will give you more available income at the end of each month — money you can redirect toward your goals or simply to improve your quality of life.

4. Make Your Money Work for You

Money has the amazing ability to grow. It's important to invest time in your financial education and, with the help of a professional, explore the best options to help you reach your financial goals.

I once read a phrase in a book that said: “When you work for money, the number of hours limits your earnings. But when you make your money work for you—by placing it in a financial vehicle that earns interest—there’s no limit to what you can earn, because your money will grow regardless of your personal effort.” Have you ever thought about that?

The reality for many of us is that we work hard for money every single day, but we forget to take time to think and plan for what we’ll do when age, health, or energy no longer allow us to work for it.

Do yourself the biggest favor of your life — start preparing today.

5. Make a Plan for the Future

Write down what you want to achieve, when you want to achieve it, and how you’re going to do it. If you’re truly committed to taking control of your finances, this habit will help you stay focused.

It’s important to recognize your short-, mid-, and long-term goals. This step might feel overwhelming if you’ve never done it before, but I encourage you to find a financial professional who can guide you with the right tools and advice.

The decisions you make today will determine how your life looks in the next 5, 10, or 15 years.

Give your money life today. Prepare yourself — and above all, stay focused and follow the plan.