Don’t fall for these money schemes

They say if it’s too good to be true, it probably is, but there are a lot of dishonest businesses that do a good job of taking your money and convincing you otherwise. A lot of the methods businesses use to get you on board promise to improve your life by preying on weaknesses; helping you ease financial burden and grow your wealth. You know to avoid scam emails from long-lost rich uncles, but here are three legal money-making schemes that people still fall for.

1. Payday loans
Payday loans seem like a good way to ease your financial stress. They work on the premise of borrowing a small amount of money for a short period in order to pay off immediate debts. However, payday loans are notorious debt traps and the high interests rates could leave you in even greater debt. A payday loan should be your very last resort and only taken on if you know you’ll be able to pay it back.

2. Phony financial advisers
If you need help managing your existing investments and implementing strategies to increase your wealth, a financial planner, adviser or accountant can provide you with valuable advice. What you’ll find is that there are a number of phony financial advisers who profit from the good reputation of more reputable individuals and businesses. These dodgy advisers will try to trick you by misrepresenting their credentials to make themselves appear trustworthy. When hiring an adviser look out for credentials from reputable institutions and check that they are certified by the Financial Planning Association of Australia.

3. Wealth-building seminars
If going to a free seminar and listening to someone else tell you how to get rich was all it took, everyone would be a millionaire. If it’s not a ploy to get you to buy real estate or invest in a timeshare, it’s a Ponzi or pyramid scheme. These schemes have been around for years, and while you might get a promotional bag with a free key-ring and a pen, ultimately all you get is ripped off by someone promising to make you rich while only increasing their own wealth. Steer clear of these false ‘opportunities’.

Have you ever been the victim of a get-rich scheme?

Related articles:
Tips for choosing a financial planner
Watchdog to oversee finance sector
Money habits you need to break

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Amelia Theodorakis
Amelia Theodorakis
A writer and communications specialist with eight years’ in startups, SMEs, not-for-profits and corporates. Interests and expertise in gender studies, history, finance, banking, human interest, literature and poetry.
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