Avoiding Get-Rich-Quick Schemes

Each year many people risk and lose money all in hopes of obtaining quick and easy cash. The article Avoiding Get-Rich-Quick Schemes, discusses how not to fall victim to financial schemes that offer high rates of return with little risk. Often times these schemes sound great on the surface, but for the majority of those involved will suffer negatively.

The author provides the following principles to avoid get-rich-quick schemes:

1. Stick to what you know

2. Don’t risk borrowed money

3. Buy investments with utility

4. Don’t make quick decisions

5. Seek good counsel

The article goes on to discuss that people typically make money in the fields in which they have experience. Proverbs 24:3 says, “By wisdom a house is built, and by understanding it is established”. It is wise to invest in things in which you have experience in or have researched. Also, the article states the importance of not risking others money. You should only risk money that you can afford to lose.

Next, the author suggest to invest in things that are useful to others. On the other hand, get-rich-quick schemes often offer intangibles with little value. Also, it is important to not make quick decisions, Proverbs 21:5 states, “The plans of the diligent lead to advantage, but everyone who is hasty comes surely to poverty”

Lastly, it is important to seek good counsel. By seeking counsel from others can assist you in making better decisions. Proverbs 12:15 states this point well, “The way of a fool is right in his own eyes, but a wise man is he who listens to counsel”.

I think that this author offered very good advice on how to avoid get-rich-quick schemes and make wise investment decisions. One fact that I think that the author did not discuss was the fact that wealth does not typically come quickly, but through hard work. This idea is pointed out in Proverbs 28:19, “Whoever works his land will have plenty of bread, but he who follows worthless pursuits will have plenty...