Cristiana Tudor is a successful social media coach whose goal is to empower women of any income level to start and scale their business to the next level through effective branding, storytelling, and social media coaching.
She incorporates mindset coaching within her programs and helps her clients break out of old patterns, transition into a healthier emotional state, and shift into positive thinking.
“Do not invest money that you are not ready to lose.”
Cristiana Tudor
Worst investment ever
Christiana is an avid learner. She got an MBA and even took financial classes. However, she never got an education in investing, even though she was really interested in starting to invest.
Avoiding the shortfall risk by investing in Bitcoin
Christiana was aware of the shortfall risk of putting money into a bank account and gaining nothing in return. So she took her savings and invested it all into Bitcoin.
While Bitcoin is not a bad investment, Christiana’s biggest mistake was investing in something that she did not understand. She had not done any research before putting all her savings into this one investment.
Getting caught up in taxation
Christiana did not know that Bitcoin was just like real estate, whereby you get taxed for every gain and also for every time you withdraw your profits. She also did not know that there were other better investments that allowed you to defer your tax. Christiana, therefore, lost some of her gains to taxes.
Then came COVID-19
When COVID-19 hit the world, the price of Bitcoin collapsed overnight, and then the next morning, when Christiana woke up, she had lost everything. She was utterly devastated and did not know what to do.
Christiana was worried about her financial security because, at the same time, the company that she was working for was not doing well, and now all her savings were gone.
Lessons learned
Never invest more than you are ready to lose
No matter how lucrative an investment seems, never invest money that you are not ready to lose. It is essential to understand how much you should be investing out of the money you are making. So do not invest all your savings, and when something happens, you have nothing to fall back onto.
Pay yourself first before you invest
Pay yourself first, then invest. You can start by investing just 10% of what you earn per month. This way, you will have money work for you while enjoying peace of mind, and you can focus on other important things in life.
Invest strategically, not emotionally
Whenever you invest, do it strategically rather than emotionally. Do not just focus on the fact that your money will grow and get to enjoy the money. Remember, to grow your wealth; you have to do it strategically.
Andrew’s takeaways
Research. Research. Research.
One of the most critical aspects of successful investing is doing thorough research before committing to an investment. However, this is the one thing that most investors overlook.
Assess and manage your risk properly
Another vital part of the process of investing is understanding the risk. Understand both the potential and the risk of your preferred investment.
This allows you to remove emotions from the process. Also, manage your risk by investing just a portion of your money and not all of your money in any one particular asset.
Actionable advice
Research on the investment vehicles that fall under tax-free or are tax-deferred and consider investing in those.
No. 1 goal for the next 12 months
Christiana’s number one goal for the next 12 months is to impact more women globally. She also has two books coming out this year.
Parting words
“Do your research, don’t get too emotional, and budget your money in terms of percentages, not a fixed amount.”
Cristiana Tudor
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