How to avoid get-rich-quick scams

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We’ve all heard the saying ‘if it’s too good to be true, it probably is’. So why do we fall for get-rich-quick scams? Well, because they come dressed up as a great investment promising a good return, in a short space of time. And who doesn’t want that? 

How do you spot a get-rich-quick scheme? 

  •       It promises high returns within a short space of time.
  •       You’re not sure exactly what you’re investing in. 
  •       The payment structure is difficult to understand.
  •       You are recruited, or the requirement is for you to recruit other people.  Remember good investments are always bought, never sold!

We often know that what we are being sold is possibly a little sketchy, but we’ve already started imagining the fancy Merc we’re going to buy when the first payment comes in. And then you start rationalising that if all these other people are doing it, it can’t be a scam! Sorry … but all those other people were duped too. Guys, if it doesn’t feel 100% right, it probably isn’t. And besides, when it comes to your cash sometimes safe is better than sorry.

We know that times can get tough and the promise of some easy money is hard to pass up. But there are safer, more legit ways to make some extra cash. So we’ve put together a little list for you: 

Start a side hustle

Look at what skills and passions you have or identify a gap in the market, and then start marketing on social media. The socials are a great and affordable platform to reach potential customers. #makeyourmoneyboo

Open a tax-free savings account

With a minimum investment starting from R250/R500 up to the limit of R2 750 a month, a tax-free savings account is a no-brainer because you do not pay ANY tax on the funds. So it’s best to leave it for the long term to get maximum return.

Invest in exchange traded funds (ETF)

One of the best and simplest ways to invest is through ETFs. Why? Because you are just tracking what the market is doing; you don’t pay anyone in an overly expensive suit to decide which companies you should invest in. Think JSE top 40.

Whatever we would love to believe, there really is no quick way to get rich. Wealth is generated by hard work and good investments over a long period of time. So be patient, and hustle hard!