The number of investment scams has been rising once again, which is a clear sign of only one thing – people continue to fall for them.
The Securities and Exchange Commission has been religiously releasing lists of unregistered investment companies, a lot of them relying on the multi-level marketing and pyramiding schemes.
With the speed at which information can now be shared, it would seem like it is also easier to warn people about what they could be getting themselves into. Sadly, this is not the case. For hundreds and thousands still continue to fall for the same scams over and over again, a lot of them families of overseas workers who believe that they are actually using the hard-earned money to invest in their future.
Why do Filipino families continue to fall for these scams? Here are the top reasons:
It’s easy money.
Let’s face it. A lot of Filipinos would rather go the shorter route when it comes to money. Imagine earning two or three times your initial investment in just a week or two. That’s a great opportunity, right? Wrong!
If you don’t want to hear the cliché that says you have to work hard for anything good, then try this cliché instead: if it’s too good to be true, then it probably is.
There is little financial knowledge.
In a retail-driven country, the Filipino masses often have no idea how finances really work. Tell anybody buying a small packet of anything from a sari-sari store that they’d save a lot more money if they buy a bigger box from a supermarket or a wholesaler, and they’d think you’re crazy.
Greed creeps in.
If you are truly honest, then you’d have to admit that greed is the key deciding factor that makes people say yes every time the huge amounts are computed right in front of you. More often than not, greed kicks common sense out the door, and dreams about luxury cars and shopping sprees take over.
So the next time your family back home tells you that they’re investing the money you’re sending into a new business they discovered, find out what it’s all about first. Do thorough research and sleep on it before deciding.
And if you are truly interested in making your money grow, invest in education first. Learn the ins and outs of finance and investments, and try to master strategies that could help you make sound business and investment decisions.
Remember that the biggest businesses in the world were not built overnight. Rather, it took a lot of cuts and bruises before the investors emerge triumphant at the end of the finish line.
So don’t jump at every investment opportunity that comes your way. Make sure that if you decide to take the plunge, the cuts and bruises should be worth it in the end.
Special thanks to GotCredit for the main image.