5 Quick Cash Schemes to Beware Of

Anything that promises you quick and easy money for an up-front investment should be carefully scoured to make sure it is not just another in the long line of quick cash schemes. Instead of expecting instant income, people need to learn more about what scams to watch out for, so here are some of the most common schemes and what red flags they should be watching for.

Ponzi Schemes

Ponzi schemes are a financial scam where potential investors are contacted and lured in with the promise of huge return on their investments, as much as 50 percent. After a few investors have given their money, the first investors are paid back with the new money, making the scheme seem legitimate. What you would be required to do in one of these schemes would be to swindle new investors to invest their money so the old ones can get paid, and in return you would get your portion of money off what you were able to swindle away from people. These types of quick cash schemes are dangerous, illegal, and they will leave you with many upset people in the end.

Internet Schemes

There are numerous businesses online that claim they will help people get rich quickly. You just have to put in a few hours’ worth of work and all of a sudden, you’ll have an astonishing income. The question to ask yourself is why would they be sharing this information if this were the case? The truth is, there is no perfect way to make an income online without the time and effort of a full time job. There are many legitimate online business opportunities, but don’t fall for one that promises huge rewards without the proper work being put into it.

House Flipping

While you can make money flipping houses if you are able to buy them for a low price and somehow turn around and sell them for a higher price, this is not the type of quick cash project you should be looking to invest in. The risk on this type of business is huge, even if you have simply just invested a small amount of cash, because if the house does not sell, you have a lot of financial responsibilities that could cause financial hardship. Steer clear of this scheme if someone comes to you asking for your hard-earned cash.

Stuffing Envelopes

There are many places that advertise the ability for people to sit at home, in front of the television, and stuff envelopes for money. They promise as much as a dollar per envelope, and since most people can do hundreds per hour, this can be a quick way to make money – but it’s not. The truth is, this is a quick cash scheme that tells you to send some money for your first set of supplies, and what you get in return is a piece of paper that tells you how to repeat this same process and get the same money from other people. Some of these scammers will also ask for personal information like bank account numbers or social security numbers that will make your more susceptible to identity theft. This type of “work at home” scam has been around for a while now and should avoided all together.

Mystery Shopping

Most of the people who hear about mystery shopping are instantly curious. They figure why not try and get money for doing something they enjoy and are already doing? The problem is you usually have to spend a lot more money than you would ever make doing this job, leaving you more in the hole after you did the job than you made in the process. The only time this is not a quick cash scheme is when you would have had to make that specific purchase anyway, allowing you to come out of the end of it slightly ahead.

Quick cash schemes are all over the place, and they are scamming people more in recent years as unemployment has climbed. Just make sure you stay aware before doing anything like this, because as the adage goes, if it sounds too good to be true, it often is.

Finances - 22 Oct, 2013 - No Comments