Invest R60 000 and make R950 000 in your first year. Allow us to manage your money and it will grow by 185 percent within two years! You’ve seen this kind of offer and may well have had your curiosity aroused. Many have answered the call. Regrettably, the most they got from this type of scheme was an expensive lesson in the principles of risk vs. return. In less than two hours spent over a few ales the other evening, I heard of three people who had lost all of their savings, one having to sell his house to clear his debts.
So here are a few precautionary measures to prevent someone from legally parting you from what you already have. These are simple guidelines based on ‘the Mel Brooks Sleep Loss Factor.’ When you hand over your money to someone who is going to do great things for you, you need to be sure that it is not going to be detrimental to your health – both financial and physical. And sleep deprivation is hazardous to your health; ask any of the thousands who “invested” in Masterbond and many similar schemes.
This is how you calculate the Sleep Loss Factor for any ‘wonder’ offer: suppose you have some money, earning interest in a bank or money market account. You come across an offer of a significantly higher rate of interest, either in an advertisement or through the efforts of an ‘investment advisor’ at your office or sports club, who tells you about a good deal that he might be able to get you into.
At this stage you apply my system. Take the best interest rate offered by the three largest commercial banks and for every one per cent above the bank rate being offered that the ‘deal’ offers deduct one hour’s sleep. If the big banks are currently offering 10 percent and someone offers you 14 percent, deduct four hours sleep. The reasoning for the above is simple. Banks ‘borrow’ money from you, the depositor, and pay you a certain interest rate. They then lend it to someone else at a higher rate of interest. They make their profits from the difference between the two rates. So you need to establish how this special ‘deal’ manages to offer much higher interest rates. Find out to whom they are lending your money, and will they get it back? Higher returns cost higher risk – and sleepless nights
Now for the so called ‘Golden Opportunity’ With so many people in the corporate sector being retrenched and employment prospects so poor at present, many are being preyed on by operators offering mind-blowing business opportunities. If you’re tempted by one, here’s some advice. If, when you call in response to the advertisement, they refuse to give you any information over the telephone and insist that you come to see them or attend a presentation seminar, put the phone down and get back to polishing your CV.
Any reputable franchise operation or business offer will give you all the information you need over the phone. They do this because they want to screen you before you go in and waste their time - and yours.
No doubt you will have heard of the ones that are legitimate business offers and know their products. I’ve no doubt that someone will comment on this blog with details of the R17 000 (or whatever) that they invested in some dealership/franchise which has enabled them to earn R100 000 per month. But I can match every one of those stories with ten about garages full of cleaning chemicals or cosmetics or motivational courses.
Yes, some people do get rich quickly, but there are also surer ways of getting there. Sleep Well!