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I don’t want to see you (or someone you love!) get sucked into financial scams, so here are some ways to keep yourself out of trouble.
If it sounds too good to be true, it probably is.
Honestly, this is the golden rule for…pretty much everything in life.
Do I want to believe that XYZ financial trick will make me a millionaire overnight? Hell yeah I do! I also want to believe that Timothée Chalamet has a Financial Feminist poster up in his bedroom. But let’s be real.
Building wealth takes TIME. There’s no such thing as a get-rick-quick solution. If anyone tells you otherwise, run for the hills.
Watch out for exaggerated promises.
Scammers tend to be lazy fuckers when they’re selling you on their shady deals, using promises like “guaranteed returns!” or “incredible gains!”
While I’m a firm believer in the power of investing, there’s no guarantee of high returns–especially over the short term. Historically, you have a 100% chance of making money over any 20-year period of investing in the stock market. But that means staying invested that whole time! Even the most dependable index funds don’t have guaranteed returns.
Always do your research.
Fortunately, there’s a pretty reliable way to spot a scam—get out your phone and google your heart out.
If you’re being fed some financial hack or trick that sounds fishy, there’s a good chance someone else has fallen for it already and has lived to tell about it. Research as much as you can to find out if it’s legit—a lot of negative search results will tell you most of what you need to know.
And if you’re being approached by someone who’s offering to help you with your finances, don’t take their word for it. Ask for references. Find out if they have credentials. You’re in a position of power here—not them. Don’t let them make you feel otherwise.
Protect your loved ones
A sad but real trend is financial scams targeting older parents, grandparents, and family members. I know TWO different people who had scammers call a grandparent asking for bail money (one grandma gave the scammers the money 😭).
One strategy is to create a secret code to verify your identity. I have one with my Nana so that she knows if it’s really me.
Beyond this, having open conversations with the older folks in your life about the prevalence of scams and dishonest salespeople can be a great first step in avoiding these kinds of situations all together.
Common financial scams to avoid
Some scams you can spot from a mile away. Others? They’re sneaky little devils that can actually seem legit.
🙅🏽♀️ Cryptocurrency
Crypto is digital money that fluctuates like it’s on a caffeine bender. Personally? I think the market’s unpredictable, there’s not enough data, and, oh yeah—crypto bros keep getting arrested. That’s a red flag, right?
But if you’re super curious and have money to burn, treat it like an experiment. Think of it as a gamble, not a retirement plan.
🙅🏽♀️ Indexed universal life insurance (IUL)
IULs are basically life insurance trying to moonlight as an investment. Hard pass. Life insurance is for insuring your life, not building wealth.
For the average person, these are straight-up scams. If you’re looking to actually grow your money, invest in an index fund instead. Fun fact: IULs can chew up 82% of your potential wealth compared to just investing in the market. No, thanks.
I do recommend life insurance for some folks, and if you’re unsure if you need it, check out this TL;DR on life insurance podcast episode and my recommended partner here.
🙅🏽♀️ Timeshares
Timeshares sound fancy—own a slice of paradise! Reality check—they’re overpriced, restrictive, and a financial black hole. Most people lose money on these things. Instead of locking yourself into a never-ending payment plan for a week at the beach, just book an Airbnb.
🙅🏽♀️ Multilevel marketing (MLMs)
MLMs love to sell you the dream—quit your job! Be your own boss! Except, plot twist—you’re not gonna be a boss, you’re just a glorified salesperson for someone else’s pyramid scheme.
Here’s the math: 99% of people lose money in MLMs. The only ones making bank are the folks sitting at the top while you sink your own cash into their overpriced protein shakes or skincare nonsense. Ugh, no.
🙅🏽♀️ Day trading
Day trading is when people try to outsmart the stock market by buying and selling stocks all day like it’s a game of blackjack. Here’s the deal—it’s not a game, and most people lose.
Like I mentioned above, the stock market is designed for long-term investing, not quick money grabs. If you’re serious about building wealth, play the long game. Otherwise, you’re just gambling with your future.
🙅🏽♀️ Fake employment offers
Ever get a random text from a “recruiter” offering you a high-paying job you never applied for? They’ll promise you a sweet remote gig, but first—you just need to send them $900 for “equipment” or “verification.” Spoiler alert: You’ll never see that money (or that laptop) again.
Rule of thumb? If a job offer feels too good to be true, it probably is. Real companies don’t ask you to pay upfront.
Stay critical—don’t be a statistic
The most important takeaway here is to keep a critical eye when it comes to your finances.
I want you to be suspicious when someone comes to you with a great financial plan that will solve all of your problems. I want you to look someone in the eye and ask them straight-up for references and evidence that they’re trustworthy enough to manage your money. You get to be the boss here, and your financial health relies on it.
So ask questions, do your research, and trust your gut. You got this.
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