After hitting rock bottom and making the necessary changes to rise back up, you’re probably going to be cautious with your money. How can you invest it in a way that will keep you from sinking again?
When you first start rebuilding a foundation for a new life or reinventing yourself after a financial rock bottom, you are the captain of your ship. Nobody else is going to steer it for you, just as nobody else will be as invested in your outcomes as you are.
As I’ll discuss in this article, adopting a cautious outlook will help you invest your money wisely and protect you from potential predators so you can rise from rock bottom, thrive, and achieve financial success.
Protect Yourself from People Who Would Take Advantage of Your Situation
When you start at rock bottom, you’re at a disadvantage-and unfortunately, predators know it. As you start your financial journey, you need to look out for yourself. Many women think they can hand off control of their money and investments to someone without staying involved, but financial success is not going to just magically happen.
Only you have your best interest at heart. It’s important to know that, even if it’s very scary to contemplate how to manage your money, particularly if you’ve never done it before. And, even if you hire a financial advisor or money manager, you still need to stay involved in how they manage your money. Ultimately, you decide whether to follow the investment advice they provide.
Before partnering with anyone, make sure you do your due diligence. Confirm that they have the credentials they claim to have and that they have a good relationship with past clients. Check the Better Business Bureau to see if the company has positive reports and to make sure there aren’t any claims filed against the company. Remember that if someone gives you an offer that sounds too good to be true, it probably is.
Weigh Your Investment Options
A lot of women feel that they have to jump at the first opportunity to earn money-but even though they think they’re doing the right thing, it can lead to a bad place.
When choosing investment strategies, you want to:
- Consider Your Options – lowering your expenses can often result in as much or more income than an investment.
- Have Family, Friends, or a CPA – someone you trust and who has a good track record with finances-review your plan before you pull the trigger…so you don’t shoot yourself in the foot.
- Before you sign a contract, review it with an attorney or someone experienced in the field. Read each line and if you don’t understand something, get clarification. Also, sign in a place with witnesses and all parties present or use DocuSign. I had someone alter a contract after my signature was in place and it cost me a fortune to prove. Lessons learned that way is hard and costly ones.
- Keep business to business, especially if doing business or any form of partnership with family or friends. Get legal contracts, put it all in writing, make sure that you are all on the same page, and get legal counsel before any problem happens so that nothing goes wrong. Losing family and friends is not worth the cost.
Doing your due diligence requires a little more work upfront, but it ensures that you don’t find yourself in a situation more desperate than the one you’re trying to leave.
Start Simply and Tap into Your Expertise
You’re starting at rock bottom, so it’s okay to approach your foray into investing slowly. The best advice I can offer around investment is “Do what you know.”
If you don’t know anything about Bitcoin or cryptocurrency, that’s probably not the best investment to start with. Stick with something you have studied or that you have past experience with. Ask yourself, “Where have I made money in the past?”
Chances are you will find new, but familiar, opportunities in the same arenas. Do what you know, and when you can’t, learn from the best. But like I mentioned earlier, be sure to do your due diligence on any potential financial partners.
Rising up from Financial Rock Bottom
You may have started at rock bottom, but if you follow these tips and invest your money wisely, you won’t be there for much longer.
Let rock bottom be the sturdy foundation under your new, thriving investments. Learn from your past mistakes and watch out for yourself, and you’ll be able to achieve the financial success that will allow you to reinvent your life.
For more advice on investing, you can find Boot Straps & Bra Straps: The Formula to Go from Rock Bottom Back into Action in Any Situation on Amazon.
Sheila Mac’s innate ability to find a glimmer of light in even the darkest of situations sets her apart from other mentors. With a focus on “Life-Style Re-Boots,” Sheila’s mission is to teach women how to find that light, as well. Along with speaking, teaching online courses, and coaching individuals, Sheila has also been a property investor and real estate team leader at Keller Williams in Beverly Hills. Through her book Boot Straps & Bra Straps, Sheila shows up for all the women who have shown up over and over for the people in their lives and now need someone to show up for them.