Sooo, now you know I LOST $35,000 trying to invest on my own. I share my story in the video and post below. Get ready to clutch your pearls! Don't worry, there's a happy ending for me AND it involves you...
Woot woot! Now you know that I have an amazing opportunity to help you learn how to invest!
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Then read the rest of my story...
Can I tell you one of my biggest darkest financial secrets? I lost a WHOLE $35,000 is less than a week the first time I tried to invest on my own. Yup!
As a result, I’m scared to invest. There, I said it. And although I’m a financial educator, until recently, I kept almost all of my money in my savings accounts because of this fear. Yikes!
I know, I know, I’ve lost out on thousands of dollars, because the truth is you can not save your way to wealth.
How did I lose all of that money? Buckle up, it’s super cringe-worthy.
MY MESSY INVESTING STORY
I was 26 and I just bought my first home the year before, a 2-bedroom condo. My credit score was awesome, in the 800’s and I still had some money saved. I had a great job as a preschool teacher, a retirement account and a bright outlook on life.
It was then I decided that it was time to start learning how to invest outside of retirement.
Although my father was a financial expert, I wanted to surprise him by learning how to without his help. BIG mistake!
I decided to ask someone I knew that had “money”, to teach me. I didn’t know many wealthy people, but I did have a friend, we’ll call him, “Alex”, and he had an expensive car, a penthouse apartment and always seemed to have money.
In my twenties, I didn’t realize that you could have expensive things, but not really HAVE expensive things. You know what I mean?
I reached out to Alex and asked him to help me invest. I had no previous credit card debt, and Alex said, the best way to invest is with other people’s money, so he advised me to open up new credit cards and take out cash advances.
Before that, I never even knew you could get money from a credit card. What I also didn’t know was that cash advances are the WORST. The amount of interest you pay for that money means you’re literally throwing money away.
I know! I know! I must have been crazy. The truth was I was blinded by the fact that I wanted to retire my parents. They sacrificed so much by raising and putting my 4 sisters and me through college.
My thinking was to give some of the money to them, enjoy some and continue to work and stock my own retirement account. Alex knew this and used my sentiment to take advantage of my lack of knowledge.
Alex owned several stores in Europe and the plan was to use the money to buy popular American brands and ship them to his stores. My investment: $20,000. My projected revenue from this “plan” was $2000/week for two years.
SCREAM BREAK: I’m literally yelling at 26-year-old Tiffany, right now… WHY?! Noooooo!
Ok, I’m back. So I went to the bank, took the money off of my cards and gave it to him. Because I had such good credit, I still had available funds.
Now here’s where a bad choice gets worse…
Because I was soon to be rich with $2,000/week income, I decided to use my cards and bought a how to start a business training program for, drumroll, please… $15,000. Yup!
My thinking was, I would have money soon and could pay it all back in a few months. Also, I figured I could use my new, projected, weekly income to start a business.
What really happened was in less that one week, I went from being credit card debt free to $35,000 in credit card debt. Yiiiiikes!
Alex predictably ran away with my money never to be seen again. Yes, we had a contract, but no I couldn’t find him.
I eventually recovered, paid off the debt, started a successful 7-figure/year business, but was STILL scared to invest until recently.
Last year I took a scared baby step into investing again and started to research platforms that would not only show me how to invest but also make it easy to do so.
Why I love them:
They created an investing algorithm specifically for women because we:
- Live longer than men
- Make less than men
- Earn an income fewer years than men, if we have children
The default model for the other algorithms is a man. Often, women find themselves outliving their retirement account because financial plan templates were not created with us in mind.
With Ellevest, YOU come first. YOU are the default.
I even partnered with the CEO, Sallie Krawcheck and asked if she would teach me and you how to start investing, and she said, YES!
Together we created a 5-day, video course called The Beginner Investor with The Budgetnista & Ellevest.
I'm going to learn how to INVEST like a woman with The Budgetnista and @Ellevest Click To Tweet
If you haven’t signed-up already, space is limited. Join us. Let’s start our investing journey together.
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