Don't be too hard on yourself, having a chinchilla is a learning process! I had to work pretty hard to earn my chinchillas trust myself, as we got her due to her being mistreated at a local pet store where she was never handled. She was not very friendly, but after a lot of love and affection, she is much better now.
Just a note- Cinny doesn't like it when you try to pick her up either. Seldom will she not bark if you are trying to grab her, as well as jump back. Sometimes she doesn't care much, it just depends on her mood. What I normally do is put out my arms in front of my body, and let her climb into my arms at her own pace. Back when she was not used to being handled, I would offer her a treat to lure her out.
Earning her trust was a long process of petting, loving, and bribing with treats (not too many a day of course). For my bonding process, I would bring my chinchilla up to a room to play. I would lay on the floor, and let her run around and do whatever play activity she felt like. Running and pooping seem popular
. For the first while she didn't come up to me much, but of course she'd get curious and come sit by me to get pet, or run around on me. Over time she started spending more time with me, and makes sure I remember she is there if I am working on the computer while she plays. Imagine laying down typing on your laptop and having a chin butt sit on your space bar!
This method led to her being excited to climb out onto my arms and come play. She now spends a lot of time using me as a personal jungle gym, as long as cuddle buddy during breaks. She will cuddle in the nook of my neck, or next to my arm, and it is great! Before she was used to me enough to be picked up when shes cuddling me, I would offer treats or bring out her dust bath as a means to catch her to put her in her cage. I felt like it was less stress, and she did not react poorly to it at all. Also, if you can play with her in the room her cage is in, I have found Cinny will let herself back into her cage when she is done playing, which is always a good thing!
Others may suggest other methods, it would be interesting to see what has worked for everyone else!