It is so easy for people to get caught up in the latest trend that seems like a sure thing. But as many have found out, there is a lot of money to be lost before you realize it is best to slow down and keep your funds safe.
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The truth is that people fall, victim to scams and Ponzi schemes because they are in a hurry to amass a lot of money. But when we take our time, we can make educated and calculated decisions about where to place our money, which would have better returns than blindly following the advice of random people who are also out in the market to get rich quickly.
Slow is safe
The faster we go, the more difficult it becomes for us to notice any faults or discrepancies in the investment industry. Taking our time can save us from needless losses.
Understand that a legitimate investment opportunity is not only safe and profitable but also easy to understand. When we hear about investments, we should remember to ask the following questions:
• What are my risks?
• Is the return on this investment guaranteed?
• How much time will it take me to get my money back?
In addition, several other factors can make an investment opportunity seem like a good deal or a scam. These factors include:
• Certain Restrictions
• The presence of the investment company's name in the name of a financial institution and
• Vague explanation of how the investment works.
Beware of Ponzi Schemes
In a world where digital wallets make it easy to transfer funds, individuals are in a hurry to make more money. People fall, victim to scams and Ponzi schemes because they are in a hurry to amass a lot of money.
Ponzi schemes are pyramid schemes where early investors make returns from funds given by later investors. The scheme requires ever-increasing "returns" from each subsequent round of payments to keep the scheme going. There is always a final payment that only pays out to the initial investors, and does not pay back any of the money to the rest of the investors.
The best way to avoid getting into such traps is by taking your time. People should not be influenced by the FOMO phenomenon as they try to be part of the next big thing that will change their life. They should cultivate patience and not feel pressured about making quick decisions especially when it has to do with their money.
People should also motivate themselves with long-term rewards instead of short-term gain. They can start with small goals that were achievable without many risks, like investing small amounts per month in mutual funds for 10 years or setting up an emergency fund in case anything goes wrong in their life.
Some people have even found that they are more in a hurry to amass money than they realize and some people have resorted to taking risks where there is a high potential for loss just because they want quick results.
This isn't healthy because it can lead to financial disaster. FOMO affects people’s lives by putting pressure on individuals to conform and take risks "because it's happening" or because it will provide gratification.
If a person wishes to make money quickly, their intentions are not always good. They are the ones who fall prey to scams and Ponzi schemes. The principle of slow is safe is an enduring one and will continue to be in this digital age.