"Good things never come easy" is one of the most popularly quoted sayings to explain that it is never easy to get anything good. Understandably, it is a lot of people's dream to make money without having to do so much work but as much as this is not impossible, it is important to note that this can only happen when difficult decisions and/or risks are taken.
The craving and desire for sudden and overnight success also called "quick money" is the reason a lot of people fall prey to scams and Ponzi schemes. These schemes assure their victims that it is possible to make three times their initial investment in a very short period with little or no work. This, more often than not turns out to be false and leads to the loss of their money.
Over time, we have witnessed the rise and fall of so many Ponzi schemes, people put their hard-earned money into these schemes and end up crying foul when both their capital and supposed investment returns are nowhere to be found.
One may begin to wonder why despite all the awareness created about these scams, people still fall prey to them. The reason is not far-fetched; greed. People are in a hurry to make money even when they are not sure of what exactly they are putting their money into simply because they do not have to do any work.
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The role that hard work plays in the journey of life and success cannot be overemphasized. Anyone who promises that you would get three times your investment in three weeks and you don't have to do anything at all is a scam and you should not pay attention to them.
For an investment to yield a lot of money, risks have to be taken and certain decisions have to be made. It is important to seek the counsel of experts in the course of the investment to avoid stories that touch the heart because you do not know everything about investment and [profits.
The fact that you take risks is also not a guarantee that your investment will yield surplus gains. You should have in mind that it is a two-way thing and anything you do or decide could make or mar your investment.
One of the things to look out for before investing in a business or anything at all is to access the "Moat". Moats in businesses are the ability of a company or business to constantly compete with other businesses.
If the business you are investing in does not show signs of being able to compete with other businesses in the long run, that business will most likely be unsuccessful and will fail within a short period.
Another very important thing to do is to know your goals. It is crucial to know what exactly you want to do and where you want to be when your investment matures. By setting realistic goals, you will not be lured into engaging in business and schemes that are too good to be true.
If your income is about fifty thousand naira and you are fixated on buying a 70 million naira house at the end of the year, then you are sure to be a victim of a scam. This is because if you are told that when you invest 50 thousand this week, in two weeks you can make 200 thousand naira, you will be interested. After all, to you, that is a way to get the house you so desire. This is a very comfortable investment and will most likely not be profitable.
Another key thing to note is to not invest in businesses that you don't understand. When you are being approached with a business idea and you are told, "You don't need to do much, just put in the money and relax, I will do the rest for you" RUN!
Anyone who does not bother to tell you the intricacies of the business they need you to invest in is probably about to steal from you so do yourself a favor and RUN!
Although the topic of understanding risk might seem over-flogged, it is a very important factor in investment. Understanding systematic risk is very important when you are looking to invest. Systematic risk has to do with market risk, interest risk, purchasing power, and exchange rate risk. These are key aspects of risk that you should pay a great deal of attention to avoid wandering into comfortable investments that will end up being unprofitable.
The reason risk-taking is important in investment is that investments aim at the possibility of future growth or income, so you are sure to encounter some kind of difficulty or rough patch before you gain what you're looking to gain.
I believe that the ultimate way to avoid comfortable and unprofitable investments is by trusting the process. As cliche, as this may sound, it is very necessary because as soon as you understand due process and know that all good things take time, you will not be cajoled to being part of an investment that you know little or nothing about which may seem comfortable but will yield little or no profit.
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