CEO and Founder of Finhabits Carlos Armando Garcia on how to get into the habit of investing.
Growing up on the U.S.-Mexico border, Carlos Armando saw his family and other immigrant families work hard and make sacrifices for a better future — para salir adelante. But looking back, he realized how limited their access to financial education really was. So he set out to change that, and launched Finhabits, the leading fintech company making financial services more inclusive in the United States.
1. On Building Good Financial Habits
As Latinos, we don’t just hope for a better future, we make it happen by working hard. But we don’t always have the habit of putting our money to work for us. Think of all the small things you do on a regular basis; things you do without thinking like brushing your teeth, going to the gym, etc. Little by little, their benefits add up. Finhabits was designed to help people get into smart financial habits, like investing, so everyone can reach their financial goals.
2. On Reaching Our Goals
The first step toward getting into the habit of investing is to choose a goal. Planning for a dream vacation or a bigger house? Invest more upfront to reach a short-term goal quickly. Thinking ahead for your kid’s college or your retirement? Time is on your side. A little goes a long way, especially when invested over a long period of time.
3. On How To Make It Happen
A habit is an action made without thinking too much about it. All you need is a reminder. For instance, when you’re ready for bed, you brush your teeth. Your dentist might also send you a postcard reminding you that it’s time for a checkup. Finhabits will help you get into the habit of investing, with easy cues to set money aside.
4. On Investing Your Money Smartly
It’s better to invest small amounts over a long period, than a large amount one time. So, the sooner you start, the better. Make sure the money you invest is money you won’t need for at least a year. Leave it along to give it time to grow. Why is it good? Think of a snowball rolling downhill– that’s compounding. You’re making money on your money.
5. On Old Myths About Investing
Investing can be risky but there are ways to protect yourself. A good way to start is to educate yourself about investing risks and myths. Check out our blog La Esquina to learn about how investing can help you protect your money against inflation and even save on taxes.
6. How to Get Started
Taking care of your finances is like taking care of your body, your house, or your car. It’s all about developing good long-term habits and sticking to them. Make a commitment to get into the habit of investing, and share your goals with your family to help you stay on track.
Looking to get into the habit of investing? Learn more about how you can start with just $20 a week at Finhabits.com.