The Dangers Of Get Rich Quick Schemes - And Other Money Pits
It is an understandable that millions of people have ambitions, desires or passing wishes to have their own business. Among those, many also have dreams to get rich quick. Let's face it, countless millions of people are in jobs they do not really like, nor get any satisfaction from. Financially, they get by from to month to month, but cannot build up real wealth. It seems a constant strain to make ends meet; frustrations are commonplace because people have little control over their own lives, they have to live day to day in their employers' cage; frustrated like grounded eagles with their wings clipped.
Maybe they are helping to make their employer rich, but what of themselves? Don't we all deserve the freedom, the riches, that the owners of successful businesses enjoy? The desperation to escape sometimes brings with it a "get rich quick" desire, which will probably not help but hinder their future journey to financial freedom.
What is easy to forget is that, usually, those business have been built with a lot of blood, sweat and tears. Running a business is very hard work; running a successful business is even harder. Those who have succeeded have usually had a vision, taken calculated risks, researched, worked long hours, and have learnt from inevitable setbacks and mistakes. They have learnt about their market sector, how to run a business, marketing, finance, and the law as it affects them in their business. Although what you may now see is a big business in glossy corporate offices, you can be sure it was originally built from hard graft.
Aah, you may be thinking, that was before the internet. Anyone can do it now! Sorry to disappoint you, but having a successful internet business requires hard work too; it involves an awful lot of learning, maybe years of frustration, many a false dawn that will lift you to the sky and dump you back down on the nearest rock. Desire to get rich quick may be a desire that stops you getting rich at all. Always remember, most of those who are rich got rich slowly.
Does all that put you off having your own business? Does that all seem too much like hard work? Do you want the benefits without the hassle? Do you resent the rewards of your bosses but turn your nose up at the thought of hard work? If you answer eyes to any of those questions, then you are prime fodder for the Get Rich Quick Schemes:
Welcome To The Internet Danger Zone
Once you start turning your attention to earning money online, you will soon be bombarded with hundreds, thousands, of "opportunities". You will see promises of millions of dollars, doubling your money every few days, turning $1000 into a $1000000 in just a couple of years; promises of thousands of people paying you $20 into your Paypal account for the rest of your life; instant businesses with no work, as someone else will be doing the work for you.
Now, stop and think about it. Be honest with yourself. How realistic are all of those claims? While each of them is possible, how sustainable are they really?
Many newcomers to the world of internet business are wary of scams, and that is good. There are scams around; many of them. But the biggest danger is not deliberate scams, but bad management. The fact is it is easy to set up a business online, which encourages people to do so who have no idea how to run a business, plan for business success, manage finances etc.
More On Get Rich Quick Schemes - And Other Money Pits
A couple of recent internet crazes are illustrations of the ease with which a business can be set up, and punters money sucked in:
The Doubler Craze
Firstly, a year and more back, there was the doubler craze. As soon as the software became widely available, cheaply, for a doubler site, then it was obvious tears were to soon follow. Anybody could set up a doubler almost instantly, then try to lure people in with their hard earned money. These doublers needed an ever increasing number of "subscribers" to succeed. But where was the money to come from to pay people when their turn came in the cycle? Only from other mugs like you who had put their hard lost money into play? Usually, yes; there was no product. These were Ponzi type schemes that sucked in money for a while, and then died. Not everybody could have double their money spat back out to them. Some did, maybe those who were into a well marketed new scheme early on. Every one else fell in the Doubler Money Pit.
The Auto Surf Craze
You don't see so many new doublers now; in fact, I do not think I have seen one for a year. No doubt the fad will re-emerge in a few years, with a few more innocents to be stripped of their money. But a new craze took over, and that was the paid to auto surf craze.
One of the great things about the internet is the instant communication. But that brings its own dangers. Being paid to autosurf was not new. The problem is, once a successful model is seen by all, others want to dive in. People who don't know how to run a business, have no sense of financial reality, no experience, or, at worst, just want to scam you out of your money.
The autosurf industry just about fell apart recently, which was good for genuine internet business, bad for those who lost money.
Keeping Out Of The Money Pit
How do you stop from falling into the Get Rich Quick Money Pit? Here are just a few thoughts:
1. Allow common sense to prevail over the emotions of the Get Rich Quick fantasy.
2. If you see an offer to join an "opportunity" that looks too good to be true, then it probably is. Look at the reality. Can their claims really be achievable, and then sustainable? Always bear in mind that money in the bank will only bring in a few % interest; business return on investment should be more, but not an enormous amount more. So if you are told to expect a 100% plus return each year without doing anything, then the alarm bells should be ringing. In a couple of words, be realistic. Realism should combine with common sense to drown out the emotion that's driving you to get rich quick without any work.
3. Before you waste your time and part with money, examine any new web site that is tempting you with get rich quick promises. Examine their history. No history for any of the individuals behind it? Forget it. Are they contactable? Is there a physical address and telephone number apart from the email address? No? Forget it. Why should they hide their exact location? Why should they not want you to telephone them? If you have money tied up in something, you want to be able to find out what is happening. Don't you?
4. If in doubt, keep out. Keeping out will not lose you anything, and you can put your money and effort into genuine business opportunities.
Other Get Rich Quick Temptations
There are, of course, legitimate ways of making money quickly. You can do them online, and if successful you may suddenly have your dreamt of riches. The problem is, with these particular "businesses" you are very likely to lose your money:
There is no doubt that people can make a good living from Forex Trading, online. With even a small amount of capital you can get started. But do not get the idea it is easy. It is easy to make a trade, but is even easier to make the wrong trade.
Forex can be very exciting, and that is a danger. Is it exciting to watch all your capital wiped out in a few mind numbing minutes; even seconds?
To make money on Forex as an individual you need to learn about the market, charts, economics and practise for many months with a demo account before you risk real money. If you do risk real money, it should be dispensable, money you can afford to lose. When you make a trade, make it a small % of your total capital in your account. If you keep putting in a substantial portion of your capital, you will almost certainly get wiped out.
Do not get the idea there is no work involved. Without research you are gambling, pure and simple. Even with research you are gambling, but just stacking the odds a bit more in your favour.
The same applies to traded options and futures. Like Forex, if you back the right direction for the share or commodity, you can get quick, exciting rewards. But also like Forex, the market can turn and bite your head off.
Small Cap Stocks
Buying shares in small companies is safer than Forex and options. Gratification is less instant, but so is catastrophe, unless you are very unlucky. Again, though, research is an essential. Try to learn as much as you can to get in tune with the market, and it is advisable to train yourself in charts.
If you go into any of the above three markets, always set a stop loss. That can stop you being wiped out in the blink of an eye with Forex and Options, but will help you be very profitable with well chosen small companies. I usually chose a 10% stop loss for small cap stocks, or a support level trigger close to that. That way, your maximum loss on any stock is 10%, but your profits are open ended.
You will see many other "opportunities" promoted on the internet. Just take care. You may find a gem, but at least check out their website for details about the people behind it and their location. Don't be another victim of the Get Rich Quick Money Pit.