There is one known flaw in humanity: we always find it very hard to learn from our mistakes. Like a moth to a flame, we keep moving back and falling for the same or similar thing.
As part of my plans to make sure people don't make the wrong investment decision, regardless of the economic crisis they are facing, I'm doing this to help open people's eyes to the level of danger attached to this topic, especially for individuals who are highly looking for urgent means of getting financial freedom.
The word Ponzi scheme is no longer a new term among us, especially for individuals who keep finding various means of getting financial freedom. It was define as a fraudulent investing scam that promises a high rate of return with little risk to investors.
Some authors also define it as an investment option where income paid to initial investors is from monies gotten from latter investors. These promises are always hard to keep, which automatically ends up in devastation for the new investors, and many ends up walking away after losing plenty of funds.
In simple terms, they got people's attention by giving them high promises of massive returns on investment (many times they're unbelievable or unthinkable).
There have been numerous things said about this sort of investments, with many individuals sighting how dangerous it is to their financial growth. Numerous warnings have been given to warn off people indulging in any sort of financial opportunities that comes with the ideology of paying Peter with Paul's money or giving high hopes of earning a gangantic return in a few days.
Even with all the facts and evidence gotten from the results of such investments, it's unbelievable that most individuals still at times take the risk of Investing in such schemes. Maybe it's their faith that this time it might work, but regardless of the cause, it's time we looked at some factors that do fuel our desire to invest in such schemes (Ponzi schemes).
*Things that fuel our desire
1. Desperation
Being desperate is practically one reason most individuals keep taking this type of financial risk; it has been estimated that 90% of individuals who engage in Ponzi schemes are looking for quick means of making money just to break free from poverty.
Just as it's being said that “Desperate times call for desperate measures,” especially for individuals in countries where the recession is hitting them hard, people at times will do things without thinking about the outcome.
2. Greediness
Most individuals that engage in this type of investment scheme are led by greed, especially in a country like Nigeria where greediness and corruption are the order of the day. People keep pushing themselves into self-destructive schemes as a result of their greed to make money suddenly.
3. No value system
“A man who stands for nothing will definitely end up falling for anything.” Malcolm X.
On most occasions, people pretend to be disciplined and full of ethics, but it's very funny to see that most of these individuals don't even have a bit of what they claimed they have when it comes to being disciplined and principled, as they do claim.
4. Lack of Quality Research.
Going headlong Into something without understanding its basics is our default setting. Many victims of Ponzi schemes are not people who engage once and back out; they are individuals who keep getting involved in this type of investments without learning their lesson.
Ignorance on its own is a disease, and this is another reason why this initiative will keep on eating many individuals and keep pushing them into bankrupt if they don't desist from this type of investments.
Having quality Informations about a scheme is vital; even if you don't know everything about a business plan or initiative, having some ideas about it will definitely help in your decision-making. So always do your research before going into any investment.
5. Lack of Planning
Adequate planning is required too, especially when it comes to our day-to-day activities. Most individuals aren't good when it comes to how to manage their financial lives; this is absolutely another problem people face. Lack of proper planning has led so many individuals to financial crises, and that has indeed affected their thinking faculty. Any form of financial freedom scheme goes, regardless of its danger.
Identifying where you are getting it wrong and what you need to do to avoid being a victim again is significant. There will always be a lot of temptations from the perpetrators of this ideology, but being able to go far ahead of them will absolutely keep you from being a constant prey for them.
So, in simple terms, do the following, and it will undoubtedly help:
Do Your research.
Regardless of what you have heard about an investment, always make sure you do Your own personal research about it. Having adequate information about an investment or scheme will absolutely help you make better decisions at the point of investing your money and time Into it.
***If it sounds too good to be true, it's probably not.****
Always beware of all these sugar-coated investment schemes. Once an investment keeps coming with more promises of a high return on investment without any risk involved, it's significant that one need to be very watchful of such scheme.
Avoid the herd mentality.
Just because everyone is doing it, I should do it. This saying has rendered plenty of individuals financially bankrupt today. It's crucial that you understand the power of independent decision-making, though that doesn't mean you shouldn't ask for people's opinions on things.Venturing into an investment because everyone is doing it can be very dangerous at times, especially for those without a solid background.
Consider your worst-case scenario.
Have you ever thought about what could happen to you if you invested all your money in such an investment and lost it all? What would you do? This is one question you need to keep reflecting on, and I am sure your answer will definitely help you make the right decision too.
Thanks for reading and hope this helps a lot too after reading.
