These 3 Money Mistakes Derailed My Financial Stability as a Latina Entrepreneur — Here's How You Can Avoid Them These are common hurdles for Hispanic entrepreneurs, but with the right strategies, you can overcome them and achieve lasting financial stability while staying true to who you are. Here's how to avoid the three biggest mistakes that could be holding you back.
By Alejandra Rojas Edited by Kara McIntyre
Opinions expressed by Entrepreneur contributors are their own.
Building a business is an exciting but often unpredictable journey. Some months, you're riding a high, seeing growth and momentum; other months, things slow down, leaving you stressed and questioning your financial stability. But, as a Hispanic entrepreneur, this rollercoaster can be a silent weight, a voice in your head that sometimes speaks through your partner, your parents or friends, reminding you that results are still pending. But mostly, it's your own voice.
Let's be honest: Inconsistent cash flow is a huge challenge. There is no way to find financial peace when you feel like you're on top of the world one month, and the next, you're staring at your expenses, wondering how you'll cover them. This inconsistency affects more than your bank account; it seeps into your peace of mind, making it difficult to plan for the future.
I know you're eager to make it work despite sometimes thinking that sacrificing your payment each month would be sufficient. Still, in my experience, there isn't enough guidance that speaks directly to the challenges we face as women of color and Hispanic entrepreneurs. When I started, resources were scarce, and running a business while striving for financial stability was even more challenging without a strategy that considered who I was as a person, my beliefs, my inner limitations and the strategic way to get there. I made mistakes that delayed my financial stability. But through those setbacks, I learned lessons that helped me navigate toward success — lessons that can help you avoid the same pitfalls and get there faster.
After all, we all benefit when this information is shared. For example, Latina entrepreneurs represent 16% of all women-owned businesses in the U.S. and have generated over $65 billion in revenue in a single year. Imagine how much more we could accomplish if we had access to the right tools and insights from the very beginning.
Let's dive into the three biggest mistakes that can derail your financial stability — and, more importantly, how to avoid them.
Related: How My Hispanic Heritage Fueled My Journey as an Entrepreneur and Leader
Ignoring the importance of financial education as a business owner
We're making progress in financial literacy as a society. Still, when you step into entrepreneurship, a whole new level of financial education is required, which many of us didn't grow up learning or even seeing, yet it is so crucial. Consider that for most of our lives, we've operated from the consumer's perspective; we have managed our finances and reacted to money from the "buying" side, looking at how to maximize the amount of money we have (discounts, sales, promotions, lean budget, zero expenses, etc.). But when you're a business owner, you must master the "selling" side. It's a whole new mindset that demands a deeper understanding of how money flows.
For instance, understanding cash flow, the art of pricing, how to negotiate, tax planning, retirement and investment strategies are no longer a good thing to have but an essential step if you want to grow as a business owner. If you're not actively learning about these areas, you're limiting your growth and putting your business at risk. Avoid falling into the trap of as long as you are bringing in revenue, you'll be fine because it's not just about money coming in; it's about how that money is managed, reinvested and sustained.
How to avoid it:
Start prioritizing financial education immediately. Find resources that cater specifically to entrepreneurs. Take courses, attend workshops or find a mentor who can guide you in business finance. Knowledge in this area will give you the power to make better decisions and accelerate your path to stability.
Related: The Financial Literacy Basics Entrepreneurs Need to Know
Carrying shame and guilt about earnings
For many of us, especially in the Latin community, there's a deep-rooted cultural discomfort around money. We grow up hearing messages like "Get money, but not too much that will make you a bad person," or that talking about money is rude, but we also have been taught to hold with much grace, implying to keep our ambition in check. These messages often translate into subconscious habits with money and feelings of shame or guilt, especially when we start earning more or see financial success in our businesses.
I remember vividly feeling guilty about charging what my services were worth. It took me a long time to realize that this mindset was sabotaging my financial well-being, and it was rooted in the undressed beliefs and feelings I grew up with.
How to avoid it:
It's time to reframe your relationship with money and directly question and shape your beliefs, ideas and feelings around earning and managing money for your financial growth. Financial independence and wealth allow us to create opportunities for ourselves and our community, so there is no space for feelings like shame and guilt in our path.
Surround yourself with people who reinforce this belief and help you build confidence in your earning potential.
The disconnect between identity and money
As a Latina entrepreneur, you may also experience a conflict between your cultural identity and your financial goals. Many of us were raised with the values of community and collective well-being, which can sometimes feel at odds with personal financial success. We may fear that pursuing wealth will distance us from our roots or make us seem less connected to our culture.
This disconnect can hold you back from fully stepping into your role as a business owner. I've seen this tension in myself and others, the feeling that if we become too successful, we might somehow betray our upbringing. But that's simply not true.
How to avoid it:
Financial success is a cultural win, and the more images and examples we have walking the path, the more normal it would be for those to come to replicate and make new standard ways of being with financial independence.
You can be deeply connected to your heritage — and I strongly encourage you to do that — while also building wealth. Embrace your identity as part of your entrepreneurial journey and let it fuel your success.
