May 7, 2025
Paul, 27, thought he had a winning strategy. Riding a wave of headlines about President Donald Trump's trade policy and looming tariffs, he took $80,000 that he and his wife Vicki had saved up and invested it in stock options.
Paul was betting that automakers like Tesla would take a hit. He was confident he could time the market and make money with his options to buy or sell. But the market had other plans.
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Instead of dropping in value, shares held strong, and Paul’s aggressive play quickly turned into a steep loss.
“It was a very difficult thing to swallow,” Paul told Ramit Sethi during an episode of the finance guru’s podcast, I Will Teach You To Be Rich.
The personal finance advisor invited the couple to unpack what went wrong and what matters in the long game of building wealth.
‘I was devastated’
When Paul made his first options trade on Tesla, he was riding high, pocketing around $3,000. But what began as a small win quickly spiraled into a devastating loss.
By the following day, Paul had lost $80,000 and decided to sell his position to “give in to the options trading gods.”
“I was devastated,” he admitted to Sethi.
The money, gone within 24 hours, was the couple’s emergency fund, saved over two years. That $80,000 wasn’t just a number, it was security.
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“It’s a big number to the both of us,” added Vicky. “The meaning behind it is freedom.”
Paul was crushed not just by the financial blow but by what it meant for his relationship. He called Vicky to tell her what had happened, describing it as a hard pill to swallow.
Vicky recalls hearing the distress in Paul’s voice. “I heard my husband being very anxious, very distressed, and my immediate reaction was to be the calm, cool, collected one.”
Before their nest egg was wiped out, Paul and Vicki’s financial picture looked solid. They had zero debt, $80,000 in liquid assets, $110,000 in investments and $23,000 in savings — bringing their total net worth to $213,000.
Now the couple is rethinking their approach to risk and working to restore what took years to build.
While many obsess over skipping coffee or hunting for coupons to build wealth, Sethi says the real game-changers involve much bigger strategies.
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"People focus on $3 questions when they should be asking $30,000 ones," he says.
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The $30,000 questions
According to Sethi, these are the kind of ‘$30,000 questions’ that move the needle:
- Choosing the right career (and knowing when to negotiate or switch jobs)
- Deciding whether to rent or buy, and where
- Making smart, long-term investment choices
- Planning major life goals like early retirement or starting a business
Sethi offered some strategies to the couple to help them rebuild and move forward.
He recommended building up a 12-month emergency fund and establishing some extra savings to provide financial security. By doing this, they will also avoid making impulsive decisions during a time of market volatility.
Sethi advised automating investments to maintain a consistent investment strategy and reduce the need to make decisions in the heat of the moment.
Panic selling in a downturn can lock in losses. It's crucial to stay informed and make decisions based on long-term goals, not fear and emotion.
And finally, it’s important to focus on major financial decisions. By prioritizing significant life choices versus short-term market movements, you’re putting your overall financial well-being at the forefront.
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Jessica is a freelance writer with a professional background in economic development and small business consulting. She has a Bachelor of Arts in Communications and Sociology and is completing her Publishing Certificate.
