The Top Four Get-Rich-Quick Schemes: How Not to Lose Your Shirt on a Bad Investment

With the United States economy in the position that it currently is it's no wonder that many people are looking for something that they can easily make money with on the side. The truth of the matter is that for some reason or another the "American Dream" has translated into, "how can I get rich in the quickest way possible". Of course in keeping with the theory of supply and demand, the more people that are trying to get rich quick, the more people who are also trying to get rich by duping those who want to get rich quick. This leads to one of the largest scam eras America has ever seen, and all to gain a buck. Some of you may also be just looking for a way to become self employed. This is ok, as long as you do you research into the idea being presented. Always remember, if it sounds too good to be true, it probably is.

Now some of you may read this and will disagree with me. Maybe you have tried some of these ideas and really did make money off of them (or maybe it just became a way for you to get real cheap energy drinks). But, I'm betting that most of you are reading this article because you already have been duped by one, if not more than one of these schemes. Don't feel bad. I have been unable to find any actual statistics, but I'm willing to bet that a high percentage of Americans have been tricked into shelling out some serious cash, and I bet most of them are even college educated.

So what kinds of scams are out there? Well, there truly are too many to address specifically in this article, so I have decided to narrow it down to what I believe are the top 4 money scams that you should avoid.

#1: The Pyramid Scheme (aka Quixtar):

Here is where I am probably going to step on some people's toes. "But it's not a pyramid scheme" or, "I've been to their meetings and if you just talk to so and so you will want to join too!" Both of these lines I have heard many a time, and both came from members of Quixtar. Besides the fact that Dateline NBC did a behind the scenes investigation on them (still think they're not a scam?) there are many other concerning things that should automatically set off your scam alarm. Though some money may be made through the actual sell of merchandise, the real money comes from what are called "downlines."

This is like a hierarchy of sales where one person makes a cut off of what someone below them makes, who makes a cut off of everyone below them, who makes a cut off of everyone below them, and so on, and so forth. So why do so many people join? Honestly, it's a mixture of misinformation and group psychology. Get thousands of people in a room and hype them up that they are going to make tons of money, and it doesn't matter what you're selling or how viable it is, people are going to join.

For more information check out

http://www.amquix.info/quixtar_pyramid.html

Here also is the link to the dateline investigation

http://www.msnbc.msn.com/id/4375477/

#2: Ponzi Schemes

Ponzi schemes are when a company offers abnormally high returns on an investment. Say for example a 30% return on an investment in 60 days. So you invest a small amount in to see if it works. Two months later a check comes in the mail with your 30% interest so you invest a larger amount and tell a couple friends who also invest. So what's really going on? The administrator of the scheme uses the money from other investors to pay the returns to you, as well as uses your money to pay the return on other investors. The administrator also skims a little bit of the money off the top, which slowly adds up to a lot of money. The problem with Ponzi scams is that they require a large amount of investors to continue the pay outs and usually do not last long before law enforcement gets involved. Once the money and investors start to run out, the administrator runs off with your money.

#3: Affinity Fraud:

Dear Mr./Mrs. (insert your name here), my name is Alanda Morishana and I am currently overseas. I am having problems getting home to my native country where I have a large trust fund that is waiting for me. All I have to do is sign the papers and 6 million dollars will be mine. The problem is that I do not have the finances to be able to make it home. If you give me the $600 dollars that I need for a plane tickets I will give you 100 times that ($60,000) for your troubles once I receive my trust fund....

Sound familiar? Most of you hopefully see these types of emails and delete them immediately. Unfortunately, many people fall for these scams every day. So what exactly is an Affinity Scam? Affinity scams are fraud that takes advantage of those who overly trust others, or have great sympathy for others. Often scammers will use religious references or ethnic references that will appeal to people of similar ideals or beliefs to help gain their trust. If you or a loved one has received these emails, like I stated before delete them immediately. Do not call, email, or correspond in any way with the person who sent them.

#4 Internet Frauds:

Make tens of thousands of dollars from Home making edible toenail clipper! Ok, so they're not that easy to spot, but thousands of people are duped into buying e-books, kits, and videotapes that promise large amount of money and self employment every day. According to the NASSA, internet fraud has become a very profitable business. In 2003 law enforcement agencies at many levels initiated "Operation Cyber Sweep" in which they identified over 125,000 victims of internet fraud at a loss of over $100 million dollars. These frauds can be everything from at home data entry jobs to even books selling ideas on how to get rich quick. I know ironic, huh?

The Conclusion

So what can I do to make money quick you ask? Finish college, get a good job, and invest. Getting rich hardly ever happens quickly, at least by legal means. It's true that the rich get richer because they have the money to invest right off, but unless you really do have a trust fund that's about to pay out, you're stuck with the rest of us who go to work 9-5, five days a week. If you truly want the eventual life of the rich and famous find a good financial planner, cut out the things in your life you don't need right now, and put that money towards long term investments. It may take 10 or 20 years, but eventually you'll have the money you desire. Plus, just think you'll have the pride that you earned it with your own sweat and blood.