Everybody must have seen those adverts which guarantee immense wealth with minimal effort. They are all over on social media, email and at times our acquaintances. These fast-money-making strategies can be quite irresistible particularly when you see trends of these influencers showing off lavish living. Do they really work? Below is my point of view on why these schemes are snares rather than treasures.
First of all, let us concentrate on the essence of these schemes. They often make you believe that high yields can be obtained by investing little in them; this can look like a dream come true. Nevertheless, this is where the problem usually begins from. These may take different forms like Ponzi schemes, pyramid schemes and some types of multi-level marketing (MLM). New investors pay older ones in Ponzi schemes until a point that there are no new recruits to collapse it. Pyramid schemes also rely on recruitment rather than sales for its products or growth as a business.
Urgency is one of the common attributes in all these schemes. It will then be repeated to you that you must act immediately or else lose out on a “once-in-a-lifetime” opportunity: these are the words aimed at creating pressure so as to cause you invest your money without thinking about it. And let's face it, anything that forces a person to decide fast, particularly when it concerns their hard-earned cash should warrant extreme caution.
Another red flag is lack of openness. A legitimate business, for instance, will tell you what models they use and how they generate profit. But get-rich-quick schemes tend to involve twisted or secret means that just do not make sense or are not fully disclosed. If the plan seems too complicated or has many uncertainties, then most likely it is a con.
The third party which suffers from this kind of fraud are the vulnerable people who have nothing but debts and hopes for financial stability. When given opportunities like this; they take them hoping there are no worries after that. That some end up worse off than where they started and losing more than mere peace of mind, including money itself speaks volumes about it and is very sad indeed.
What is particularly wicked about these schemes is that they exploit the appeal of influencer culture. We see these influencers endorsing them, flaunting their luxurious lifestyles, and it makes it look like a possible way to achieve certain levels of success. In most cases, however, these influencers are paid to promote them rather than because they genuinely trust in them.
One notable teaching I learnt was that creating real wealth takes time and effort. There’s no alternative for hard work, wise investment options and patience. Quick fixes almost never work either; where they do, it tends to be fleeting. Truthfully speaking, any venture offering easy money with little effort is likely to be a fraud.
Furthermore, knowing the difference between wealth and being rich is essential. Wealth accumulates over time while being rich may only last for a short while. Most get-rich-quick schemes promise fast riches without incorporating any longevity elements that make up genuine wealth.
As path to riches, get-rich-fast schemes are more likely to lead to financial losses rather than gains. These preys upon our craving for easy success and often leaves us worse off. It’s crucial to examine every chance with care especially those appear too good to be real. Developing tangible wealth entails time, work and sometimes a lot of risk management. Keep to established monetary codes; give up the temptation of quick retaliations and concentrate on steady development.
In actual fact there is no such thing as free money.
