There's Still a Racial Wealth Gap and I'm Over It: Here's What I'm Doing to Build Wealth as a Latina (2024)

The study stated plainly that while Latinos are 17.3% of the US labor force, "Latinos are collectively underpaid by $288 billion a year." Money, and generational wealth, remains largely out of our hands.

The US Hispanic population grew 23% between 2010-2020, and we are the second largest ethnic group in the US. As more and more of us make financial changes in our lives, our whole community flourishes.

I didn't start investing until I was 27 and had paid off $30,000 in student loans and interest. Coming from a low-income background and being low-income in my early 20s, I didn't have the money to invest until I eliminated my student loans.

Once they were gone, I put that same amount of money into investing in my Roth IRA. I now have three years' worth of living expenses in my Roth alone.

Jannese told me that "Having multiple income streams has allowed me to become financially independent in my 30s, reach Coast FI, and retire from my 14-year career as an engineer. I'm able to invest aggressively in the stock market, which has secured my ability to retire.

"That was importantto me because my parents are unable to retire. They didn't learn aboutfinancialliteracy until I started to share my learning with them (they're in their60s). I'm now using theexcess incometo employ family members in my business, and invest in brokerage accounts that are earmarked for them. Having multiple income streams is allowing me to create generational wealth and break the cycle of poverty, and that's my biggest source of pride."

I spent most of my 20s earning under $30,000 a year. I have budgeting down to a science. What will best serve me now is not to cut back anymore, but instead to focus on earning more. For example, increasing business revenue by $20,000 through my business means that after taxes I have an extra $14,000 a year to save or invest.

There's only so much we can cut from our spending, especially as prices on things like food and housing increase. Earning more is a better use of my time and energy.

No one wins alone, and no one does their best work by themselves. It's not a win to me if I am a millionaire with no one else in my life. I want to prioritize my community as well as my money!

This means talking about money with family and friends, being in a supportive business group, and donating to organizations that share my values. Money isn't just something to keep to ourselves; it's a tool to use to support your personal values.

Since paying off my student loans, I've remained 100% debt free. I pay off my credit cards in full each month, and I don't currently own any property, so I have no mortgage.

Avoiding high interest debt is an important part of my millionaire plan. I want my money working for me in assets, not sent away to someone else in the form of a debt payment.