Current Articles

Improve your life by Avoiding Schemes 

Quick Background

A quick background for the environment in our times. In today's times of instantaneous communication, access to information is made convenient when it is only a mouse click away.

Social media tools such as YouTube, TikTok, television, popular news outlets, and others have become the dominant channels for a large audience to gather and hear the latest and greatest news special. 

By being aware of the environment many retail and even some institutional players are in, we can be better educated to make wiser decisions with our money. And by sticking to proven ways of creating wealth, we can reduce as much as possible of unnecessary risk.

Our Current Environment

Human nature and our many freedoms in America such as freedom of speech and assembly help create and maintain an environment to spend our hard-earned money.

A Ponzi scheme may be in many forms, and one may be unrecognizable from another. But there are big and little lies. A big lie might be in the form of an actual Ponzi scheme promising big returns with a history of returns as proof to convince you.

But we also have less identifiable Get Rich Quick Schemes.  Usually these come in the form of easy, get rich quick shortcuts. 

If you hear something like on sale only today, act now, you should be careful. Or you hear things like get rich quick, with big numbers being thrown at you, run!

Often times we are subconsciously being sold fancy cars with fancy girls; this is what we buy into in in reality. These means are used as sales tactics to get you in the door, and later to drive your behavior to commit to the purchase of a service or product.  

Three Sales Pitches to Avoid

1)Notice the ads you see daily. One that is currently popular is the get rich quick through my course. The courses are usually for the benefit to line the pockets of the creator. 

2)Second, get rich through other investments such as crypto, and even stocks. Avoid the speculative bubbles. A few will take from many and most will be left empty handed.

3)Third, private equity investments such as franchising, partnerships, etc. Many franchises serve to the benefit of the franchisor and not the franchise owner.

A franchise can quickly evolve from a mere investment to a full-time store manager job. In essence you have borrowed money to work! This is especially common when the investments end up doing poorly and you have no choice but to start working as a manager in order to not lose money!

In general, avoid private equity investments unless you don't mind parting with your money. If you wish to participate, do it with a small enough amount that it won't impact you. Leave private equity investing for the most experienced and most well to do. 

Any Solutions?  

Avoid Fear and Greed in stimulating your behavior. Let these fade and you will hopefully have a clearer understanding of what to do or not to do. 

The best advice I can give is to follow a hard rule of sleeping on it. Tomorrow you will have hopefully changed your mind about parting with your hard-earned money. 

Consult a professional such as a Certified Public Accountant or a Certified Financial Planner if you are unsure of what to do.

In addition, these three specific solutions have a history of success in our market. Formal Education, Investing, and Employment.

Three Alternatives to Get Rich Quick

1)Formal Education

Instead of enrolling in a get rich course we can enroll in a formal education program statistically proven to increase your yearly income.

Learning a trade such as a plumber or electrician, etc. are also proven to produce income and even wealth. Education and training help us become more skilled, and in the United States a specialized skills equates to higher earning power. 

We know doctors and lawyers earn more than cashiers. Even though everyone won't become a doctor, this is the way capitalism rewards some financially more than others. 

In addition, for those that wish to learn on their own, the majority of informal learning can be done for free. The library is a great place to start if you are looking to learn and expand your understanding of any subject that's out there. The internet also has great content, especially on more current events. 

2)Employment

Whether you are self-employed, are running a business, or working for someone else, hard work has been proven time and again to provide the income you need. 

When we trade our time and skills and provide value for others, we earn an income. Trading our time for money is a proven way to earn income as well as wealth if we stay consistent. 

3)Saving and Investing to wealth

Living below your means and investing in an index consistently is a proven way to make a noticeable difference in your financial well-being. Instead of chasing unrealistic returns from crypto or hyped-up stocks an index type investment has proven to generate positive returns.

This won't happen overnight but over a period of even 5-10 years a dent will be made. Just look at the long term returns of any stock index like the S&P 500.

$10,000 invested in ­­­­the beginning of 2000 in an index fund that tracks the S&P 500 would have accumulated to over $40,000 by the end of 2022, assuming reinvesting dividends. 

It is important to remember that the real return is significantly smaller due to inflation and taxes, but nevertheless the investor is better off.

In Conclusion

Stay Focused with a PLAN that's been PROVEN. Just remember that of course there are no guarantees in anything, no matter what you believe in personally!

And even though some may want you to believe this, you don't need to be a Mathematician or Physics expert to be good with money! 

Avoid get rich courses, speculative stock and crypto "investments", and private equity investments such as a franchise. 

Instead choose proven alternatives with a long track record of creating millionaires. Formal education, full time employment, and saving and investing in proven funds that track indexes such as the S&P 500.

There's nothing more to it!