Wealth building doesn’t have to be intimidating. Developing a new mindset, learning from the right people, and educating yourself can help Latinos get started on their journeys to building wealth.
On April 19, Angeles Investors and The Alumni Society hosted the exclusive Wealth Creation Series: Columbia Edition featuring two members and Columbia alumni: Ivana Estrada, data products customer engagement at Google, and Damian Rivera, CEO of the Association of Latino Professionals For America (ALPFA).
Here are five key takeaways from their conversation.
- Mindset makes a difference.
Resource scarcity doesn’t have to mean a scarcity mindset. An abundance mindset can help us identify opportunities, which can make all the difference and create a solid foundation for building wealth.
2. Make promotions even more lucrative.
Did you, or will you soon, score a big promotion? As you’re considering buying a house or a car or other big-ticket item with that higher salary, consider all of your options. In some cases, building your wealth machine with stock options and by putting money into different investment opportunities might be the better investment at that time.
3. Financial advantage is just one aspect of wealth.
Wealth means different things to different people, and money and assets are just one part of it. You can have all the material abundance in the world, but if you’re unhealthy, have weak relationships, work in a toxic environment, or have no time for yourself, family, or hobbies, then you need to reassess your definition of wealth.
Money (and work) comes and goes, but your loved ones and passions remain which is why it’s so important to focus on your health, time, relationships, your emotional state, and faith. Financial advantage is just a piece of the pie.
4. Get into the right circles.
Insight and access are key when building wealth. Make sure you are joining circles of people who are having wealth-building conversations so you can build your own foundation and systems with discernment. Joining those conversations, asking questions, and learning from more experienced and well-connected people can help you tweak your own methods to building wealth and identifying opportunities. Get in those rooms (In-person or via Zoom).
5. When angel investing, look closely at cash flow.
If you’re interested in angel investing, it’s important to not make that the core of your investments. With startup angel investing, in particular, it’s important to review and verify cash flow, P&L, and revenue. Every pitch will promise top ROI, but cash flow is critical. Also important is the expertise of the team involved. A great product might not succeed with an inexperienced team.
By getting informed and educated, having the right mindset, and realizing that financial advantage is just one aspect of wealth, Latinos can set themselves on the right path to build wealth.