Nurture your money mindset by unsubscribing to limiting beliefs that live rent-free in your head. These five misconceptions about investing might be holding you back from building a path towards financial freedom. Break through the resistance, and step into your financial power.
The Latine community deserves to move beyond inherited limiting beliefs and step into generational wealth. Gone are the days of normalizing toxic relationships that include lingering misconceptions about investing: we want to see you build a path toward financial freedom. So, we are demystifying investing by myth-busting common misconceptions that might be holding you back from opening an investment portfolio.
Myth #1: Men are better investors than women.
False. The truth is that women are outperforming men in investing. On average, women’s investment returns were 0.4% higher than men’s, and women tend to invest with a long-term time horizon in mind. As a result, they trade less overall, which allows them to ride out market lows and avoid any extra fees. Amiga, you know what you can accomplish, so don’t be fooled by this outdated patriarchal thinking.
Myth #2: Investing is only for the wealthy.
False. Don’t push off investing because you are saving up for your first investment to be substantial. The truth is you can start investing for the price of a latte. Many brokerages allow people to invest as little as $5 into a stock of their choosing. Hot tip: setting up recurring investing contributions is a convenient and effective way to invest for the future, regardless of the size. Plus, starting small lets you understand the investment world better before making bigger jefa moves.
Myth #3: You need to be an expert to invest.
False. In the digital world, you have resources at your fingertips that can set you up for success. You don’t have to be a financial expert to invest; you need to put in the energy to learn. Our partner J.P. Morgan Wealth Management offers the Women Investing Resource Hub, which provides invaluable resources to support your investment journey. Don’t be afraid to take the first step. Knowledge is power.
Myth #4: Cash is safer than the stock market.
Market volatility can make it scary to invest and easier to keep your money in a piggy bank. Plus, it doesn’t make it any easier given our immigrant backgrounds that bring money beliefs that stem from a scarcity mindset and experiences from our home countries (corrupt government, poverty, lack of financial education, and old costumbres). The truth is that stock price volatility doesn’t always equal risk. It’s a long-term investment that tends to grow in value over time. Make your money work for you. And with the right moves, watch your money grow.
Myth #5: It may be a little too late if you didn’t invest earlier in life.
It’s never too early or too late to invest. The best time to start investing was yesterday; today’s the second-best time to start investing. Closing the wealth gap is a generational effort that you can begin, regardless of age. Be the person in your lineage to create a new financial future for the next generations.
It’s time to take ownership of your financial future, amiga! Let’s throw away these myths that have kept us with a scarcity mindset and claim the abundance and prosperity we deserve! To learn more about how you can set your finances up for success, check out our Amigas in Wealth Workbook curated with our partners at J.P. Morgan Wealth Management from our Amigas in Wealth Summit earlier this March for you to build the financial future you desire.
About the Author
Chantelle Bacigalupo is #WeAllGrow Latina’s Editorial Staff Writer. She is a Bolivian-American photographer, multimedia journalist, and activist based in Brooklyn, NY. Her work focuses on issues ranging across immigration, social & environmental justice, preserving Indigenous cultures, and reproductive justice.