One of the TV programmes Mike & I enjoy watching the most is AMERICAN GREED! It’s a series of true documentaries on American fraudsters and the schemes through which they have robbed thousands of people out of millions of dollars. Some of the accounts are sobering and extremely sad as old people with limited means have been drawn into scams that have resulted in the loss of all they have. Some of the scamsters have been part of religious organisations and, being cloaked as men of faith, have managed to reduce their parishioners to paupers.
As I’ve watched the shows, I’ve learned more and more about what to do and what NOT to do when it comes to investing money.
Do Not Trust Anyone!
This may sound extremely callous but you can hardly trust anyone. In my life, I can count on one hand the number of people I truly trust. People you think you can trust, may quite possibly be completely untrustworthy, so watch out. Trust is earned. Don’t give it easily.
Take Responsibility For Your Investment.
I understand that it may be easier to find a ‘trustworthy’ financial advisor and get them to handle your financial investments. Be extremely careful. Financial advisors have got to live and they do so on the commission they receive from investing your money. While I am sure there are many highly ethical and honest financial advisors around, you are the owner of the investments. You have to take ownership of understanding how investments work and the examine the options set before you. If you go to a financial advisor, ask a lot of questions. What are their credentials? Do they have references? How can you know for sure that they are doing with your money what they say they are? Know where they are putting it, who is underwriting it and follow the success of it.
Don’t Put All Your Eggs In One Basket.
There were many investors in American Greed who threw all they had into one investment opportunity. It was a scam and they lost everything. If they had put a portion of what they had into it, they would have lost something but not everything. The answer is to diversify. Don’t put all your eggs in one basket. If you have money to invest, invest in something that will make money.
Picture from Genius.com
If It Looks Too Good To Be True, It Probably Is
This is something that is said over and over again on American Greed. When the economy crashed in 2008, the scam investments just kept on climbing. If something looks too good to be true, it probably is. Be very, very wary if you are offered ridiculously high returns on an investment. If your investments ebb and flow with the economy, they are more likely to be legit that if they are soaring to unbelievable heights. If they are, there could quite easily be something going on behind the scenes that you are not aware of.
THEN, there are some basics
Spend Less Than You Earn
If you don’t have the money to buy something, don’t buy it. Live within your means. Don’t try and live a lifestyle that you can’t afford.
Be Generous
Giving is one of the pleasures of life. Be generous. Tithe and give to the poor.
Save
Don’t let a month go by without trying to save something – even if it is just a little. Rather do without extras in order to save.
You Don’t Have To Have A Lot Of Money To Be Rich
Get an attitude change when it comes to riches. Being rich is more than having a lot of money. Look at the riches in your life that don’t have monetary value. Relationships, the beauty of nature, the sound of birdsong, beautiful music, romantic love, peace, joy, hope and most of all, faith in God. These and many others like them, are free gifts that money can’t buy. Fill your life with those kinds of treasure.
John 10:10
The thief comes only to steal and kill and destroy; I have come that they may have life, and have it to the full.
Keep the smile going!
God bless you!
In His Grip,
Helga xx 🙂