WHEN it comes to money, even the
smartest people can get ripped off. People need to be careful when trying to
enrich themselves, there’s no such a thing as instant money. You can’t trust
anyone, especially with all these pyramid schemes that promise huge returns.
Whenever the topic arises, the
first question that people ask is what a pyramid scheme is. A pyramid scheme is
a fraudulent investment that doesn’t benefit the investor but the perpetrator.
Kalyani Pillay, the CEO of Sabric, explains that investors get hooked in by the
false promises of getting huge returns. She says the perpetrator makes a very
appealing and enticing presentation to an average person. Because on the
surface, it looks legit, people join the schemes. “The first few investors are
lucky enough to get a slice of the cake, this is nothing but a trick to get
more investors and get the existing members to put in more money with the hopes
of doubling the amount,” Kalyani says. “Scammers will go to great lengths to
get victims to invest in these schemes through the use of social engineering
tactics.” Millions of people have lost their lifetime savings to pyramid
schemes while they were looking out to magically make even more money in what
sounded like a ‘too good to be true’ pitch, and indeed it was. Kalyani urges
people to be realistic. She says people need to be mindful before making any
hasty decisions when it comes to their finances. “They will even come up with
convincing, fabricated statistics to make their offer look attractive, so
always treat these kinds of schemes with suspicion,” she says.
LEGIT INVESTMENT OPTIONS
Everyone is out to make a steady
figure, and it would be the most unfortunate experience to be the one person
schemers make that figure from. It’s best to always do thorough research before
putting your money into something, and don’t just take anyone’s word for
Below are some of the investment
options for those who are ready to take a chance and a little risk with their
finances the lawful way:
¦ Stokvel: This is an effective way to save
your money, there are short and long-term savings plans but it can be quite
tricky to get a stokvel that really meets your needs.
¦ Retirement fund: A retirement plan is the
best way to go if you are set on the future, you can start saving monthly and
get your money growing and ready for when you retire.
¦ Property: It’s unlikely to go wrong with property. It
never depreciates. The more an area develops, the more value the property has.
¦ Stock Market: There’s money to be made with stock as you are
dealing with dollars and pounds, but this option is tricky. You can make money,
and you can also lose a lot of money, and you’ll probably need to hire a
¦ Shares: There’s also no guarantee for this option as well,
anything can happen in a minute. You can either make triple in a minute, or
lose everything in a second.
THINGS TO CONSIDER BEFORE
Pyramid schemes can rob one of
their hardearned cash, but they are not the only ones that can clean out your
savings. First things first. Before making an investment, you need to prepare
yourself for anything, even if you are investing in an already functioning and
money making business. Pieter Jansen van Vuuren, a psychologist and facilitator
at Solstice, says there are always risks surrounding investments. He says that
the economy can take a toll on what was the most successful company in the
past. “Not every investment will be a success. Things can change, just because
it’s a big establishment does not mean that your money is safe,” he says. There
are institutions where you can invest your money with a guaranteed interest.
Everyone can get their money growing, but Pieter says one needs to know exactly
what they are in for. He says for those who are not ready to take a gamble, the
right way would be going to the bank even though the interest may be small. “If
you are not ready to take a loss, a bank is the way to go. You are sure to get
all your money back after the period, with interest on top,” he advises. It’s
best to know your nature. If you know that you are likely to be depressed after
taking a loss, it would be best to avoid taking financial risks.