Category Archives: Money & Business

How To Spot A Scam

Barely 3 days after I posted the blog Do You Want To Get Rich Quick?, the latest Get-Rich-Quick scheme appears on my Facebook timeline.

A few years ago, a friend told me about this “Gold Investment” company which guarantees a 30% p.a. return. Straightaway, I said, it’s a scam.

As expected, I got the defensive response.

I discovered quite a few friends were into this “investment scheme”. One friend even told me that it has to be legitimate because he was introduced by a university professor who sits on the Board of the company. Surely, a university professor can be trusted?

I have learnt that when it comes to money, nobody can be trusted! Not even your mother!

Fast forward a few years and the company gets shut down by Bank Negara and many who donated their life savings are now still suffering.

Well, today,  I discovered a new “gold trading investment” opportunity.

Not offering 30% guaranteed return.

Wait for it.

Guaranteeing 120% p.a. return. Wow!

Not only that, you get 10% for introducing new suckers, I mean, investors. And not only that, you get additional bonuses based on the balancing of a binary MLM structure 10 levels deep.

Wow! So many bonuses!!!!! Quick invest!

Listen. One of the easiest ways to spot a scam is this rule:

If it’s too good to be true, it’s too good to be true!

As a general rule, run away from anybody who guarantees you 30% or more consistent return on an investment.

Nobody on planet earth can give that kind of guarantee.

Even the richest, most respected, most revered investor, Warren Buffet, cannot give you that kind of guarantee.

Do you know that in the past 30 years, Warren Buffet has only achieved an 18% annualized return on his investments? (source)

Warren Buffet? One of the richest men in the world. Only 18%?

Someone should ask him to put his money into this new gold investment scheme.

If it’s too good to be true, it’s too good to be true!

Remember this.

Nobody can stop you from investing into a scam. But if you introduce others to do so, you are responsible.

Don’t be a fool.

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Do You Want To Get Rich Quick?

I’m sorry to say this.

If your answer to the above question is yes, then you’re a fool.

If I sound harsh, it’s for your own good. History is littered with the sob stories of millions wanting to get rich quick.

The best examples are lottery winners.

Wouldn’t you love to strike the lottery one day and suddenly have a windfall of millions? Imagine all the things you could do with all that money?

The truth is, most lottery winners eventually shipwrecked their lives and ended back in poverty.

Don’t believe me? Then check out these links:

19 Lottery Winners Who Blew It All
How the Lives of 10 Lottery Millionaires went Disastrously Wrong

Why?

Why is it foolish to desire quick riches?

The most obvious reason is that greed blinds you and leads you to make really stupid decisions.

But, even if you don’t make stupid decisions, the truth is, you can’t handle all that money.

How can you handle $100,000 when you haven’t handled $10,000?
How can you handle $1 million when you haven’t handled $100,000?
How can you handle $100 million when you haven’t handled $10 million?

Learn to build your wealth and you will get to keep your wealth.

There is a reason why things take time in life. We need time to grow.

Take the time to get rich and your riches will last beyond your lifetime!

Find out How To Spot A Scam in my next post here.