Money Management Principle: Don’t Be Greedy – Watch Out for Investment Scams!
When facing a desperate situation, it is all too easy to fall prey to an investment scam, leading to significant financial loss and potential ruin.
“Greedy people try to get rich quickly but don’t realize they’re headed for poverty.” (Proverbs 28:22)
Don’t chase the allure of get-rich-quick schemes. Instead, focus on investing in reputable options, taking control of your financial future.
I want to share a few checkpoints you can use to verify if an investment is legit or a scam…
- A sound investment should be well-regulated and licensed, with a physical address, a website, and a business bank account, and they will not make use of a free email account service like g-mail.
- If any investment promises a return greater than what the market is offering, it should make you suspicious. If an investment offers to double your money in a short period of time, this should trigger alarm bells.
- An investment scam will often make the investment opportunity sound like it is an “exclusive limited offer”; if you don’t do it immediately, you will lose out. This should make you weary.
- Watch out for Ponzi schemes and scammers on social media who will try to portray themselves as successful, living on an exotic island and driving a flashy sports car.
- Make sure that you check the facts. Do your research. Look into the company’s history. Do they have a good reputation? What is their track record? Who is the business linked to?
- I suggest that you deal with tried-and-trusted investment houses with a proven track record and a history of solid performance.
- If you are in doubt, don’t do it.
- Pray through it. Make sure that you have peace in your heart before you commit to investing.
- Get advice. I suggest you get advice from an independent financial advisor who can help you build a well-diversified investment portfolio over the long term.
“One person pretends to be rich, yet has nothing; another pretends to be poor, yet has great wealth.” (Proverbs 13:7)
If an investment opportunity seems too good to be true, it usually is!
“For the love of money is a root of all kinds of evil. Some people eager for money have wandered from the faith and pierced themselves with many griefs.” (1 Timothy 6:10)
Don’t be greedy. Don’t run after huge returns. Be cautious. Spread your portfolio assets across various regions, geographical areas, asset classes, and reputable asset managers.
“Ship your grain across the sea; after many days you may receive a return. Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land.” (Ecclesiastes 11:1-2)
I suggest you get independent advice and build up a well-diversified wealth portfolio over time. Building wealth is not a quick fix; it requires a disciplined approach over the long term. If you stick to your plan over the long term, you can build toward financial freedom.
“Dishonest money dwindles away, but whoever gathers money little by little makes it grow.” (Proverbs 13:11)
