Peso por Peso: Invest & Build Your Wealth
Making a resolution to invest this year, but don’t know where to begin? Las Fabulosas sits down with financial planning expert, Louis Barajas, to find the best financial strategies. According to Barajas, it is important to look at your life in defining milestones. “Look at goals beyond today -- wedding, home, kids, college -- then it becomes clear how important it is to start saving,” says Barajas. Here he shares three tips for building wealth through investments.
Build a Cash Foundation
Before you can begin investing it is important to build a liquid foundation for everyday emergencies. A common misconception is how large this fund needs to be. Barajas suggests a healthy base is around $2,000, or a similar amount that could cover a health issue or car problem that may arise unexpectedly.
Invest in Retirement
Once you have a cash foundation, it is time to start investing. Where is the first place to put your money? “Retirement,” says Barajas. “Work to achieve a well-diversified portfolio with different asset classes.” He also notes that if you are investing in real estate, it is extremely important to have your accountant look at the deal first. “You want to make sure it cashes out before you end up losing money sustaining the property,” says Barajas.
Automate SavingsBarajas stresses how crucial it is to get started right away. “Don’t just make a resolution, go right to the bank and start a system for saving.” Automate your savings and investments by having them taken right out of your paycheck before you even see it. “To make something powerful, you need to make it practical. Keep it simple,” says Barajas.