Why Do People Keep Looking For Get-rich-quick Schemes?

Who doesn’t love to get rich? I’m sure if someone offered you a get-rich-quick scheme for a million dollars, you would be willing to leave everything behind in its pursuit, won’t you?. I for one would be doing so! 

As wealth has become the most common way to determine one’s success, we all try to get rich quickly. The quicker we are able to get rich, the more successful we consider ourselves to be. 

But, is being successful the only reason to look for get-rich-quick schemes? Let’s check out some other reasons for people to keep looking for these schemes. 

Topics we’ll be discussing:

get rich quick scheme
Get rich quick scheme

1. The mentality that more money = more happiness

We often hear, “Money can’t buy happiness”, but won’t you prefer to be happy in a cycle than be sad in a limo? The reason people use this quote is that they themselves never had money in the first place. 

The fact that you are reading this article shows that you wish to have more money in the future, don’t you? You might have set a financial goal – earning a million dollars before turning 40 or getting rich quick enough to be able to buy a home. You might even measure being able to buy a house as the major source of your happiness.

Even better, what if you had a get-rich-quick scheme which would magically enable you to earn more money than you could have thought? Just thinking about its possibility makes us happy (at least in the short term). 

While starting your investment journey, you will often come across this mentality.

“Happiness is not in the mere possession of money; it lies in the joy of achievement, in the thrill of creative effort.

Franklin D. Roosevelt

2. People have been lazier than ever

With apps such as UberEats in the USA, Zomato in India, and similar others in different countries, we prefer to not work for our meal. We choose to text over call and choose to video call over meeting in person. With such advanced technologies, we are bound to be lazy, aren’t we?

This has also developed in money related matters. Only until a few decades ago, people used to invest their money carefully. They expected to earn a consistent return over a long time. But look at it now – how many people actually invest? 

Traders are all over the place nowadays, trying to get richer than all their counterparts. We hear about people betting on bitcoin, people engaging in trading on a minute basis. Where has all our patience gone? We want to put lesser and lesser effort, but expect to get more and more in return. 

We believe that the get-rich-quick scheme provides us the perfect platform to get rich being lazy. 

 “I fear the day that technology will surpass our human interaction. The world will have a generation of idiots.”

Albert Einstein

3. Getting Rich Means Freedom From Burden

Do you use the money to avoid your problems instead of confronting them? If you answered yes to it, then you do like to get rich quick, don’t you? After all, whatever problems come, you can use your money to tackle them.

I for myself, have been guilty plenty of times. Every time my shoes tore up, I used to buy a new pair instead of trying to fix them. When I don’t feel to cook, I call the food-delivery service to deliver my food on my doorsteps.

“Financial freedom is freedom from fear.”

Robert Kiyosaki

Coming Back to Reality…

Did you too believe that the get-rich-quick scheme exists because you watched The Wolf of Wall Street (just like me)?

Think for a minute – don’t you think everyone would have followed the get-rich-quick scheme if it actually existed?

Having mentioned all the wonderful reasons for us to get rich quick, it’s time to get back to our reality. The fact is that get-rich-quick schemes don’t exist at all. 

Even I thought tricked into believing the existence of the get-rich-quick scheme. This was one of the most important investment lessons in my life.

Whatever we hear about them are all false. Most of them are a form of a pyramid scheme, which is illegal in most parts of the world. As per Google, a pyramid scheme is a form of investment in which each paying participant recruits two further participants, with returns being given to early participants using money contributed by later ones. 

The participants try to hire as many people as possible since their commission is directly related to the number of people brought in.

Get-rich-quick pyramid scheme
Source: Thefootnotes.com

Real Example of a Pyramid Scheme

Back in 2008, a company launched a large pyramid scheme in Canada. To become a member, applicants needed to pay $3,000. Then, the members would get $5,000 for each membership sold. The catch was that they had to collect $100,000 in sales (20 membership plans) before getting their payment. 

As expected, most people failed to fulfill the $100,000 criteria and lost their upfront payment of $3,000 as well. They were only successful in bringing in a few new members, which the company was able to exploit further.

“I thought they were my friends until they asked me to join their pyramid scheme.”

Unknown

It Takes Time to Generate Wealth

Remember that even Warren Buffet became a billionaire only in his 50s. He had started investing since he was 11 years old. 

If a person who started young became billionaire so late, then we can be certain that generating money isn’t as easy as it sounds. In other words, there’s no such thing as a get-rich-quick scheme. 

Riches To Rags

Bernard Madoff, the founder of the largest pyramid scheme in the past two decades, had stolen more than $65 billion from the public. After finding out about his fraud, his net worth plummeted down to nothing.

Elizabeth Holmes, once worth $4 billion, was charged with massive fraud on her health tech company. After that, she was even unable to pay her lawyer fees.

Get-rich-quick schemes don’t exist but from these examples, we know that get-poor-quick schemes do exist.

Conclusion 

So before getting excited about the next get-rich-quick scheme, think about it critically. You never know when the get-rich-quick scheme turns out to be a get-poor-quick scheme.

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I have written a similar article about my experience with social media in this coronavirus lockdown. Check it out – My Personal Experience With Social Media In This Coronavirus Lockdown

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This Post Has 4 Comments

  1. Avinash

    Nice post. 🙂

  2. Robert

    I lost my money after Investing. It may be my lack of research. Thank you for this article. I will do research before jumping.

    1. Kiran Kandel

      Hello Robert,
      Thank you so much for leaving your thoughts here. Yes, indeed you have to do lots of research before going to Investment field.

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