Why “Get Rich Quick” schemes DO NOT WORK.

Have you ever thought about getting rich – and to do it quickly? On this world where money is power, is it really possible?

I want to get rich quick~!

Who on earth doesn’t want to get rich? I mean, ever since “jobs” where introduced to this world, we had been trying to achieve the almost illusive riches of life – vast amounts of money… From Marketing to Social Media, we see this promotion and advertisement where you can get rich quickly.

Problem is, we either have a current debt or we are currently lacking finances – which  all of us had experienced. Then, as we struggle to achieve that proverbial “cake in the sky”, we try to get rich as quickly as possible with every particular or trending ways to get rich QUICK… 

From stocks, Forex, or other financial schemes; most people will be impressed by the stories of “john doe” who achieved financial success and freedom from utilizing such methods… It is however, possible that such methods can earn you income – as a matter of fact, I also did most of them in my financial quest for success. But here’s the catch…

there’s no such thing as get-rich-quick in these methods mentioned…

It’s true that you can earn profits from doing stocks or Forex, but these methods are not exactly omnipotent as they are. They are rife with risks, therefore an average or first-time investor may be liable to failure instead of success by doing them without further knowledge. Stocks need researching as not all particular companies can perform well or “volatile” in their markets. Forex is a different beast – although similar to binary options – it uses instead the “foreign exchange” of particular countries and you bet whether they rise in value (which you buy) or they go down (which you short or sell)… This is the reason why they are also risky without researching their very nature.

How come some online community swears they get rich from those methods?

As I have said, it’s true that you can earn, though it is also true that some received “riches” from such financial vehicles (just like me). The problem is, these online communities, posts, or pages (often sponsored)… often do not portray nor exemplify the risks involved from these financial earning schemes. So the average person – ignorant of these methods- will then invest hoping that they could receive the same success others did, albeit also hoping to do it expediently. But the sad truth is, these methods of earning potential profit is nothing more than an advertising method to make any reader – online or by word of mouth – read the said articles and be interested in investing… There’s nothing bad about that, but the thing is; “the common folk, who do not know about how they work, will ignorantly invest on financial vehicles without research”… This then will lead the newbie investor without thinking; sooner or later, such investments will fail to develop profit due to lack of inside knowledge or even investing information – these first-time investors will then lose hope and blame the community or the company who lead them for such failed investment.

In the business and investing world, such mistake is avoidable if you were financially educated and informed. But of course, who could blame the “first-timer” who, from his or her own honest mistake of not researching, failed to achieve financial success from these so-called “investment methods”. One must then be asked… “what the hell happened…?”

 

It’s not the investment – it’s you.

Most people do not realize that the problem lies not with the investment, but actually from “lack of information”; specifically, lack of investment and financial information…

Also, just merely knowing them (investment schemes) are not enough; you need to know how to apply and practice them with precision, the same way as a knife cuts through vegetable – it’s not about how you cut, but about what to cut. Investments are risky, therefore, you need to know what to invest and when to invest.

As what Mr. Warren Buffett had said “Do not test the waters with both feat”… then start with something less risky when investing in order not to lose much or all of your savings.

Start with something safer when investing; such as investing in “mutual funds” or “trust funds” or even starting your own business with “less capital or none at all”… My two-cent about this method is, if you want to start investing big and risky later, then start with something safer first – after all, nobody runs without walking first – do the opposite otherwise, and you’ll get a fair share of pain and struggle along with “premature” execution of such investment.

As a final note: When investing, you have to use your head, not your emotion or “wish” in order to get rich – because if you are not using your head, then all you’ll feel is the need to expedite on how to get rich – this is not a good investing attitude due to “rushing” will only make you invest haphazardly. Taking risk is a good thing, but a healthy one is good – not the haphazard one; learn to invest with the right information and you’ll be on your way to financial success… do not rush, take it slow, and learn to invest.

  • Jay Penn

 

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"Jay Penn" is a Financial Literacy Mentor and Investor who is best known for his Book "Polymath's Profit". He is also an expert in the field of Maritime, Engineering, and Emergency Medical from his past careers. Experienced with Security Analysis, Crisis Prevention, Contingency Planning, and Global Maritime Distress Safety System. Currently instructs Nautical Sciences and is an avid Researcher of Business and Economics. He is also recognized as the "Top Maritime Instructor" for 3 consecutive years in the Maritime Education from 2014; raising the standard for the Maritime Industry and Training.

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